Context Therapeutics Announces Q2 2024 Results

Context Therapeutics Inc., a biopharmaceutical company focused on developing medicines for solid tumors, has reported its financial results for the second quarter ending June 30, 2024, along with significant business developments.

CEO Martin Lehr expressed optimism about the company's trajectory, highlighting the initiation of a Phase 1 trial for CTIM-76, a Claudin 6 x CD3 bispecific antibody, with patient dosing expected in the third quarter of 2024. The recent acquisition of CT-95, a mesothelin x CD3 bispecific antibody, complements CTIM-76 and adds to Context’s portfolio of clinical assets.

The company has strengthened its leadership team with the appointment of Dr. Claudio Dansky Ullmann as Chief Medical Officer. Dr. Dansky Ullmann, recognized for his expertise in oncology and T cell therapies, is expected to enhance Context’s clinical development efforts. Additionally, Karen Andreas was named Vice President of Clinical Operations.

On the pipeline front, Context completed the acquisition of CT-95 in July 2024. This mesothelin x CD3 bispecific antibody had previously received Investigational New Drug (IND) clearance from the U.S. Food and Drug Administration (FDA). The company plans to dose the first patient in the Phase 1 trial for CT-95 in the first quarter of 2025. Earlier in May 2024, the FDA cleared the IND for CTIM-76, setting the stage for the Phase 1 trial's commencement.

The company also secured substantial financial backing through a private placement in May 2024, raising approximately $100 million in gross proceeds. These funds are expected to support the duration of the CTIM-76 Phase 1 trial and the dose escalation portion of the CT-95 Phase 1 trial, ensuring operational funding into 2028.

Context's second-quarter financial results show a marked improvement compared to the same period in the previous year. Cash and cash equivalents soared to $101.5 million as of June 30, 2024, from $14.4 million at the end of 2023. Research and development (R&D) expenses considerably decreased to $1.4 million from $3.5 million in the second quarter of 2023. This reduction was mainly due to lower costs associated with CTIM-76’s contract manufacturing and preclinical stages, though clinical and regulatory costs rose as preparations for the CTIM-76 Phase 1 trial ramped up. Personnel-related expenses also declined due to a reduced headcount.

General and administrative expenses saw a slight drop to $1.7 million from $1.8 million, primarily driven by lower compensation, share-based compensation, and insurance costs. However, professional fees saw an uptick.

Other income increased significantly to $0.8 million, compared to $0.3 million in the same period in 2023, mainly due to higher interest income from cash and cash equivalents. As a result, Context reported a net loss of $2.3 million for the second quarter of 2024, a significant improvement from the $5.0 million net loss reported in the same quarter of the previous year.

Overall, Context Therapeutics appears to be on a solid footing with its robust pipeline, strategic acquisitions, strengthened leadership, and improved financial health. The company is well-positioned to advance its clinical programs and support its operations through 2028.