Sonnet BioTherapeutics Releases FY 2024 Q2 and YTD Business and Earnings Update

Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN), a biopharmaceutical company focused on developing innovative targeted biologic drugs, recently shared its financial results for the three- and six-month periods ending March 31, 2024. The company also provided significant business updates.

Sonnet has made noteworthy progress in its clinical programs. In February 2024, the company published Phase 1 data of SON-1010 in "Frontiers in Immunology," highlighting the safety and tolerability of the FHAB-derived Interleukin 12 in healthy volunteers. The study, called SB102, demonstrated that SON-1010 is safe up to a single ascending dose of 300 ng/kg. The pharmacokinetic data indicated effective targeting and retention in the tumor microenvironment, which correlates with findings in mouse models. This Phase 1 study lays the groundwork for further dose escalation in ongoing cancer patient trials.

In March 2024, early safety data from its Phase 1b/2a clinical trial of SON-080 in patients with chemotherapy-induced peripheral neuropathy (CIPN) were announced. The study met its initial safety objectives, allowing the trial to proceed. Conducted in Australia, the trial used a new version of recombinant human Interleukin 6 (rhIL-6), confirming its safety before advancing to more extensive enrollment. Though CIPN development is currently on hold, the data will support a new Phase 2 study in diabetic peripheral neuropathy (DPN). Sonnet is also exploring partnerships to advance this asset towards commercialization.

In April 2024, Sonnet presented preclinical data and plans for its CIPN study of SON-080 at the American Association for Cancer Research (AACR) Annual Meeting. The presentation included information on the study design and preclinical findings, emphasizing the potential of low-dose Interleukin 6 for treating neuropathies.

Financially, Sonnet reported having $3.8 million in cash as of March 31, 2024, with no debt. Research and development expenses decreased significantly to $2.2 million for the quarter, down from $3.8 million in the same period last year. This reduction is attributed to cost-saving initiatives and a strategic focus on projects with the greatest short-term potential. Sonnet has moved some product development activities to more cost-effective locations like India and Australia and reduced expenditures on secondary programs.

General and administrative expenses also saw a reduction, falling to $1.7 million from $1.9 million in the previous year. This decrease is due to cost-saving measures and a reduction in consulting expenses, partially offset by higher legal and professional expenses.

Dr. Pankaj Mohan, Sonnet's Founder and CEO, expressed optimism about the company's progress in strengthening the safety profiles of SON-1010 and SON-080. He mentioned that upcoming data from a PDL-1 combination study in platinum-resistant ovarian cancer would build on the current findings. CFO Jay Cross highlighted the company's efforts to manage operating expenses and leverage opportunities like the New Jersey Technology Business Tax Certificate Transfer Program, which brought in $4.3 million from the sale of net operating losses. With these measures, Sonnet aims to sustain its operations into July 2024, potentially extending to August with additional cost reductions. The company also entered into an equity facility with Chardan to raise more capital.

Sonnet BioTherapeutics specializes in oncology, utilizing its proprietary Fully Human Albumin Binding (FHAB) platform to develop biologic drugs. This platform aims to enhance the safety and efficacy of immune-modulating drugs by targeting tumor and lymphatic tissues.

The detailed updates underscore Sonnet's continued efforts in advancing its clinical programs and managing financial resources to ensure sustained progress in developing innovative treatments for cancer and neuropathic conditions.