Dogwood Therapeutics Reports Q3 2024 Financial Results

Dogwood Therapeutics, Inc. (Nasdaq: DWTX), originating from the merger of Virios Therapeutics, Inc. and Pharmagesic (Holdings) Inc., has announced its financial results for the third quarter ending September 30, 2024. The company, a pioneer in developing treatments for pain and fatigue-related disorders, has also provided a business update reflecting its recent strategic advancements.

Launched in October, Dogwood Therapeutics sees its pipeline significantly enhanced with the incorporation of Halneuron®, a novel non-opioid NaV 1.7 modulator aimed at treating neuropathic pain linked to chemotherapy. This drug complements their existing investigational candidates, IMC-1 and IMC-2. CEO Greg Duncan emphasized the transformative nature of Dogwood's expansion and the pivotal role of the concurrent strategic financing facilitated by CK Life Sciences Int’l., (Holdings) Inc. The financing enables Dogwood to operate through 2025, presenting substantial value creation opportunities, especially with upcoming data from key trials.

Dogwood Therapeutics is advancing several promising programs:
1. **Halneuron®** - Currently in Phase 2b for chemotherapy-induced neuropathic pain (CINP), this drug has received fast track designation from the FDA. Interim data from this trial are anticipated in the second half of 2025.
2. **IMC-1** - A combination antiviral treatment designed for fibromyalgia (FM), ready for Phase 3 development. This program has also been granted fast track designation by the FDA, and partnerships are being explored to facilitate its Phase 3 trials.
3. **IMC-2** - Undergoing Phase 2a development, this combination treatment targets Long-COVID (LC) sequelae. Top-line results from the ongoing study, which compares two doses of IMC-2 against a placebo, are expected by mid-November 2024.

In terms of financial performance, Dogwood reported increased research and development expenses by $0.2 million in Q3 2024 compared to the same quarter in 2023, primarily due to higher costs associated with a grant to the Bateman-Horne Center (BHC) for a second proof-of-concept study in LC. General and administrative expenses saw a significant rise of $0.9 million, driven by higher legal and professional fees related to the recent business combination.

For the third quarter of 2024, the company recorded a net loss of $2.3 million, translating to $2.05 per share, compared to a net loss of $1.2 million or $1.62 per share in the same period the previous year. The company’s cash reserves stood at $2.0 million as of September 30, 2024. Combined with the $16.5 million loan proceeds received in early October 2024, Dogwood's current financial resources are deemed insufficient to cover operational expenses and capital requirements for the next 12 months. Additional funding of $3.0 million is anticipated in the first quarter of 2025 to sustain operations through the year.

Dogwood Therapeutics is firmly positioned as a key player in the biopharmaceutical industry, focusing on innovative treatments for pain and fatigue-related disorders. Their proprietary pipeline includes non-opioid analgesics like Halneuron®, which is poised to address significant unmet needs in neuropathic pain management. Additionally, their antiviral programs (IMC-1 and IMC-2) show promise in treating conditions linked to herpes virus reactivation, such as FM and LC. The anticipated results from ongoing trials are eagerly awaited, potentially marking significant progress in these therapeutic areas.

In conclusion, Dogwood Therapeutics continues to navigate its financial and operational challenges with strategic funding and robust advancements in its clinical pipeline. The coming months are critical for the company, with pivotal trial results expected to further define its trajectory in the biopharmaceutical landscape.