Cingulate Q1 2024 Financial Results and Clinical Update

KANSAS CITY, Kan., May 8, 2024 – Cingulate Inc.(NASDAQ: CING), a biopharmaceutical firm known for its Precision Timed Release™ (PTR™) drug delivery technology, has disclosed its financial results for the first quarter of 2024. The company also provided updates on its clinical and business activities.

Shane J. Schaffer, Chairman and CEO of Cingulate, stated that the company is steadily advancing its efforts to file a New Drug Application (NDA) for CTx-1301 with the FDA by the first half of 2025. He emphasized the significant strides made in securing capital to support ongoing business operations and the progress of CTx-1301.

Throughout the first quarter of 2024, Cingulate effectively raised $10.7 million in capital. This included $3.2 million from an At the Market Offering Agreement with H.C. Wainwright & Co., LLC, and $7.5 million from a public offering in February 2024. Additionally, the company converted $3.3 million of debt into equity, with the conversion managed by Werth Family Investment Associates, LLC, represented by board member Peter J. Werth.

As of March 31, 2024, Cingulate reported having $1.1 million in cash and equivalents, with plans to seek more capital as needed. The company's total liabilities were reduced to $2.3 million from $10.4 million at the end of 2023. Stockholders’ equity increased to $3.2 million, reflecting a $10 million rise from the previous year-end.

The company's R&D expenses amounted to $1.8 million for the quarter, a decrease from $2.1 million in the same period in 2023. This reduction is attributed to heightened clinical activity offset by lower manufacturing and personnel expenses. The first quarter of 2024 saw significant costs related to two Phase 3 studies for CTx-1301, focusing on pediatric and adolescent safety and efficacy, and dose optimization. In comparison, the same quarter in 2023 included costs mainly for manufacturing clinical supplies for these studies. Personnel costs were reduced due to lower headcount and cost containment measures, including salary reductions implemented in late 2023.

General and Administrative (G&A) expenses fell to $1.1 million in Q1 2024 from $1.7 million in the same period the previous year. The decrease was primarily due to reduced personnel and insurance expenses. The reduction in personnel expenses resulted from a lower headcount and the aforementioned cost containment measures. Additionally, there was a decrease in the premium for directors’ and officers’ insurance from 2023 to 2024.

Cingulate reported a net loss of $3.0 million for the quarter ended March 31, 2024, an improvement from a net loss of $4.0 million in the same period in 2023. The reduction in net loss was mainly due to decreased R&D and G&A expenses.

Cingulate’s consolidated balance sheet for the period ending March 31, 2024, reflected total assets of $5.5 million, total liabilities of $2.3 million, and an accumulated deficit of $95.9 million. The company's equity stood at $3.2 million, a notable increase from a negative $6.9 million at the end of 2023.

Cingulate Inc. focuses on developing next-generation pharmaceutical products using its PTR™ technology to improve patient outcomes, especially for conditions requiring frequent dosing like ADHD. The company is also exploring other therapeutic areas for future product candidates, including anxiety disorders. Cingulate is based in Kansas City, KS.

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