Panbela Therapeutics Inc. (OTC:PBLA), a biopharmaceutical company focused on developing treatments for cancer, reported its third-quarter financial results for 2024. CEO Jennifer Simpson announced a $12 million strategic loan commitment from Nant Capital to support its clinical programs, including the Phase 3 ASPIRE trial for ivospemin in metastatic pancreatic cancer.
The trial aims for full enrollment by Q2 2025, with an interim analysis expected in Q1 2025. The company reported a net loss of $7.2 million for Q3 2024 but expressed optimism due to early positive outcomes in the trial and ongoing efforts to uplift the stock to a national exchange. CFO Sue Horvath noted a net loss improvement compared to the same quarter last year and detailed the company's financial position and capitalization strategy.
Key Takeaways
- Panbela Therapeutics received a $12 million loan from Nant Capital, with $2.85 million already funded.
- The ASPIRE trial for ivospemin shows promising early results, aiming for full enrollment by Q2 2025.
- The company reported a Q3 2024 net loss of $7.2 million, with $142,000 in cash reserves.
- General and administrative expenses remained flat, while R&D expenses decreased compared to Q3 2023.
- Panbela aims to list its common stock on a national securities exchange and manage cash to extend its runway into the next year.
Company Outlook
- Panbela is focused on completing the ASPIRE trial and advancing its FAP program and PACeS trial for colorectal cancer.
- The company is working towards a national securities exchange listing to improve stock visibility.
Bearish Highlights
- The company's current liabilities significantly exceed its current assets.
- There was a reported net loss of $7.2 million for the quarter.
Bullish Highlights
- The strategic loan from Nant Capital bolsters the company's financial position.
- Early data from the ASPIRE trial suggests potential improvement in patient survival rates.
Misses
- Panbela's cash reserves are low, with only $142,000 reported as of September 30, 2024.
Q&A Highlights
- Management discussed efforts to manage cash effectively to extend its operational runway.
- The company addressed questions regarding its strategy to uplift the stock to a national exchange and the potential impact on shareholder value.
Panbela Therapeutics Inc. is navigating a challenging financial landscape with a strategic focus on its clinical trials and operational efficiency. The support from Nant Capital provides a financial cushion as the company progresses with its pivotal ASPIRE trial and seeks to improve its market position through a national exchange listing. Despite the net loss, the management's prudent financial strategy aims to sustain operations and achieve its clinical and corporate objectives.
InvestingPro Insights
Panbela Therapeutics Inc. (PBLA) faces significant financial challenges, as highlighted by recent InvestingPro data and tips. The company's market capitalization stands at a mere $1.46 million, reflecting investor skepticism about its prospects. This aligns with the article's mention of the company's efforts to uplift its stock to a national exchange, which could potentially improve visibility and liquidity.
InvestingPro Tips reveal that PBLA is "trading near its 52-week low" and has "fared poorly over the last month," with a 20.79% price decline in the past month alone. This poor stock performance underscores the urgency of the company's strategic initiatives, including the $12 million loan from Nant Capital mentioned in the article.
The company's financial struggles are further emphasized by the InvestingPro Tip indicating that "short-term obligations exceed liquid assets," which corroborates the article's bearish highlight about current liabilities exceeding current assets. Additionally, the tip stating that PBLA is "not profitable over the last twelve months" is consistent with the reported Q3 2024 net loss of $7.2 million.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for PBLA, providing a deeper understanding of the company's financial health and market position.
Full transcript - Panbela Therapeutics Inc (PBLA) Q3 2024:
Operator: Greetings, and welcome to the Panbela Therapeutics Third Quarter 2024 Earnings Call. At this time, all participants are on a listen-only mode and a question-and-answer will follow the formal presentation. [Operator Instructions]. Please note this conference is being recorded. Joining me on today's call are Jennifer Simpson, Chief Executive Officer; and Sue Horvath, Chief Financial Officer. Before we begin, please note that statements made on this call that are not historical facts may be considered forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed in the company's filings with the SEC. Any forward-looking statements made on this call speak only as of today's date, and the company does not undertake any obligation to update or revise any of these statements to reflect future events or circumstances. With that, I will turn the call over to the company's CEO, Jennifer Simpson. Dr. Simpson, please go ahead.
Jennifer Simpson: Thank you, and thank you all for joining us. I will start today's call by highlighting our investment from Nant Capital, then discussing our clinical development program, our recent achievements, and upcoming milestones. After that, Sue will review our financial results before we open the call up for Q&A. As mentioned, a significant recent development is our $12 million strategic loan commitment from Nant Capital. The loan consists of two tranches of convertible promissory notes. The first tranche was funded in the gross amount of $2.85 million on October 22, and the second tranche is expected to fund in a gross amount of $9.15 million by November 15, subject to customary conditions. This commitment is more than just a financial investment. It represents the potential of orchestrating the activation of the patient's immune system and the metabolic pathways as an evolutionary approach to address pancreatic cancer and extremely difficult to treat cancer. Our lead assets ivospemin, eflornithine, and Flynpovi target the polyamine pathway in ways that could complement ImmunityBio's natural killer cell and killer T cell activation technology. The combination of immunotherapy and metabolic pathway platforms could create powerful synergies in enhancing patient outcomes. We believe this strategic investment reflects the investors' confidence in the potential of this multi-targeted approach to reset dysregulated biology and potentially enhance anti-tumor activity. We're especially encouraged by Dr. Patrick Soon-Shiong's recognition of the synergistic potential between our platforms. His perspective as both a surgeon and leader of Nant Capital and ImmunityBio validates our approach, particularly regarding our lead assets ivospemin, eflornithine, and Flynpovi. We're excited about the potential impact of combining these innovative approaches in our fight against cancer. Now, let me provide an update on our lead program the Phase 3 ASPIRE global clinical trial. This pivotal study evaluates our candidate ivospemin or SBP-101 in combination with gemcitabine and nab-paclitaxel for first line treatment of metastatic pancreatic ductal adenocarcinoma. As many of you know, our safety database has continued to expand substantially throughout 2024, and we're pleased with the consistent safety profile observed as announced through the Data Safety Monitoring Board or DSMB meetings that have taken place. The trial's progression has been remarkable with strong site engagement driving a faster than expected enrollment rate. We anticipate achieving full enrollment of approximately 600 patients by second quarter 2025. Regarding the timing of our interim analysis, as we've mentioned before, we continue to observe a notably lower event rate than initially projected, potentially signaling that patients may be experiencing better outcomes than expected. This persistent trend of extended survival times has led to our interim analysis timeline of the first quarter 2025. And as we all know, this becomes particularly significant when we consider the current treatment landscape. Even with recent advances like NALIRIFOX, which showed a modest 1.9-month survival benefit, the urgent need for more effective therapies remains clear. Metastatic pancreatic cancer continues to carry a devastating prognosis with median survival still falling short of one year. The lower event rate we've observed in the ASPIRE trial so far takes on added significance. If these early signals translate into meaningful survival benefits, our spending could represent a significant advance over current standards of care. The current regulatory environment for pancreatic cancer treatments, combined with our encouraging signals, positions us well for potential future FDA consideration. We remain focused on executing this trial with the highest standards driven by the urgent needs of pancreatic cancer patients. The next few months leading to our first quarter 2025 interim analysis will be crucial and we look forward to sharing those results, which could potentially reshape the treatment paradigm for this challenging disease. Turning to our FAP program. We have worked with key opinion leaders to help finalize the protocol, which is in the final stages as we prepare to submit to the regulatory agencies for review. We look forward to advancing the protocol for review while -- excuse me, while evaluating opportunities to maximize the program's potential. Regarding the PACeS trial, as many know, this Phase 3 study of Flynpovi for preventing high risk adenoma and second primary colorectal cancers has completed enrollment. As we've mentioned before, having successfully passed the planned utility analysis, we anticipate data readout by the second half of 2026. This NCI supported study conducted by SWOG has the potential to impact the treatment landscape for patients previously treated for Stages 0 through 3 colorectal cancer. In our Phase 2 portfolio, we continue to see progress across multiple programs. The eflornithine pediatric neuroblastoma program has provided additional value through monetization with US WorldMeds FDA approval of eflornithine, marking a significant milestone as the first FDA approved polyamine targeted therapy in cancer. This validation strengthens our confidence in our polyamine focused approach. Our clinical programs continue to expand the Phase 2 eflornithine study and castration-resistant metastatic prostate cancer is actively recruiting while our type 1 diabetes trial in collaboration with Indiana University School of Medicine and JDRF has all six centers actively enrolling with an interim analysis expected next year. Looking ahead, our planned Phase 2 trial of ivospemin in platinum-resistant ovarian cancer in collaboration with Johns Hopkins University School of Medicine is progressing as anticipated. The encouraging preclinical data presented at AACR provides a strong foundation as we prepare to evaluate ivospemin in combination with polyamine metabolism and immune modulators. Moving to our Phase 1 pipeline program, I'm pleased to report that in late September, we enrolled the first patient in the dose escalation study of CPP-1X or STK11 mutant non-small cell lung cancer. This study is being conducted at the prestigious Moffitt Cancer Center. The key points of this program are evaluating for eflornithine sachets in combination with Keytruda, the initial Phase 1 objectives focus on determining maximum tolerated dose and the safety profile. We expect data readout by mid-2025 and the Phase 2 initiation is targeted for later in 2025. These program objectives are being executed under excellent clinical leadership. I'm particularly encouraged by Dr. Jhanelle Gray's leadership as principal investigator. Dr. Gray who Chairs Moffitt's Department of Thoracic Oncology, recognizes the critical need for new combination approaches with immunotherapy, especially for STK11 mutant tumors, which typically show reduced anti-tumor T cell levels. This trial is especially meaningful following our recent success with CPP-1X in neuroblastoma. Our preclinical data suggests polyamine modulation could potentially reinvigorate immune response and we're eager to explore this clinically in the STK11 mutant non-small cell lung cancer patients, a population that historically responds poorly to checkpoint inhibitors. Looking ahead, once we establish safety in Phase 1, we'll advance to Phase 2 to evaluate efficacy. Beyond this specific trial, we're excited about exploring eflornithine and ivospemin potential role in combination with other immunotherapies including CAR-T therapy. Turning to our neoadjuvant pancreatic program. We continue to progress toward opening this investigator initiated trial. Our preclinical development efforts also continue to show promise, particularly through our ongoing collaboration with MD Anderson Cancer Center. This research initiative remains focused on evaluating the potential synergy between our polyamine metabolic inhibitor treatment and advanced immunotherapy approaches, including CAR-T cell therapy and bispecific monoclonal antibodies. These preclinical studies continue to complement our broader clinical strategy and reinforce our commitment to innovative cancer treatment approaches. Building on earlier presentations, our research collaboration with Vanderbilt University Medical (TASE:PMCN) Center continues to generate valuable insights. Their presentation at Digestive Disease Week conference earlier this year focused on the eflornithine's evaluation in gastric premalignant conditions. The Phase 2a trial results demonstrated important safety and efficacy findings, particularly showing eflornithine's ability to reduce DNA damage in treated patients. These findings continue to validate our polyamine pathway approach, especially for patients at high risk of developing infection associated gastric cancer. The data from this NCI funded study remains particularly relevant as we advance our understanding of polyamine pathway targeting in both cancer prevention and treatment settings. We're encouraged by the sustained momentum in these collaborative efforts and look forward to further developments in these research programs. In summary, our remaining 2024 clinical milestones include completing the necessary steps to open the neoadjuvant pancreatic cancer trial in early 2025, finalizing the Phase 2 ovarian -- excuse me, trial to open in early 2025, and submitting the FAP global registration protocol to the FDA and EMA for feedback. And in 2025, we anticipate the overall survival interim analysis for our Phase 3 ASPIRE trial in the first quarter of 2025, as well as the completion of enrollment anticipated in the second quarter of 2025. In closing, the third quarter and subsequent period have been important for Panbela, marked by significant clinical advancement and a new strategic relationship. Most notably, we secured a $12 million strategic loan commitment from Nant Capital in late October, representing not just financial backing but a powerful clinical alliance that looks to combine our polyamine metabolic inhibitor platform with their natural killer cell and killer T cell activation technology. Dr. Patrick Soon-Shiong's endorsement of this synergistic approach, particularly regarding ivospemin, eflornithine, and Flynpovi validates our strategy and opens new possibilities in our fight against cancer and metabolic conditions. As we move through the final quarter of 2024, we remain focused on advancing our robust clinical pipeline, while leveraging this new partnership to enhance our therapeutic potential. The momentum we've built, coupled with the strategic alliance, positions us strongly for continued progress and value creation. I will now turn the call over to Sue to discuss our financial results. Sue?
Sue Horvath: Thank you, Jennifer. General and administrative expenses were approximately $1.1 million in Q3 of 2024. This is flat compared to the same quarter last year. Research and development expenses were approximately $6.1 million in Q3 of 2024, compared to $6.7 million in the prior year quarter. Slightly lower spending is due to reduced preclinical costs and lower direct costs from the CRO for the ASPIRE trial. Net loss for the quarter was $7.2 million, or $1.48 per diluted share, compared to a net loss of $7.8 million or $53.74 per diluted share in Q3 of 2023. Total (EPA:TTEF) cash as of September 30, 2024, was approximately $142,000. This balance does not reflect the $12 million funding agreement we filed on October 22. Total current assets were $5.2 million and current liabilities were $20.1 million at quarter end. Regarding our capitalization, as of September 30, 2024, we had approximately 4.85 million common shares outstanding, after including shares reserved for options and warrants, our issued in fully reserved share count was approximately 13.95 million shares. Cash used in operations for the nine months ended September 30, 2024, totaled approximately $12.5 million. Cash used in operations included our net loss for the nine months offset primarily by an increase in the company's accounts payable and accrued liability balances. On July 24, 2024, the company entered into a loan agreement with US WorldMeds, LLC. Pursuant to that loan agreement, the company and our wholly-owned subsidiary CPP obtained a term loan from the lender in the original principal amount of $1.5 million. The loan proceeds were used by the company for payment of fees and expenses owed to its contract research organization for the ASPIRE trial. As Jennifer highlighted earlier, on October 22, we executed a note purchase agreement with Nant Capital, which includes two convertible notes, a $2.85 million Tranche A Note issued immediately, and a $9.15 million Tranche B Note to be issued by November 15, 2024. The notes have six-month maturity and earn interest at SOFR+ 8%. Both notes can be converted to company stock at $0.37 per share with a 33.33% ownership cap until maturity. The funds will be used for general corporate purposes and debt repayment. The US WorldMeds note was paid off immediately upon receipt of the Tranche A funds. Panbela's common stock remains eligible for quotation on OTCQB under the symbol PBLA. The company continues to pursue a new listing of its common stock on a national securities exchange. Operator, we are now ready to take questions.
Operator: Thank you, ma'am. At this time, we will be conducting our question-and-answer session. [Operator Instructions]. Thank you. We have a question on the line from Jonathan Aschoff with ROTH Capital. Your line is live.
Jonathan Aschoff: Hello, Jennifer and Sue, glad to hear about the $12 million. Can you tell me what that does in terms of your potential to uplift? How does that maybe kick that up to a higher gear or a higher likelihood?
Jennifer Simpson: Did you want to take that or do you want me to?
Sue Horvath: Excuse me. We're still pursuing the uplift round because it's a loan. It doesn't immediately assist us in terms of our stockholder equity requirement. And anything other than that would be speculation.
Jonathan Aschoff: Okay. So how long do you think that will last? And what triggers, if anything triggers the second tranche, the larger tranches because I didn't hear any mention to that.
Sue Horvath: There are no requirements for the second tranche, so that, that should be completed actually by the 15, which is tomorrow.
Jonathan Aschoff: Okay. Of the [ph] $12 million sounded a bit less than certain.
Sue Horvath: Yes.
Jonathan Aschoff: Okay. And how long --
Sue Horvath: And we'll continue to manage cash as closely as we can and make that last into the first quarter of next year.
Jonathan Aschoff: I mean, because you can hold off the people you owe and a portion of that debt you can push to a longer maturity, correct? You don't have to pay all that debt off fairly soon, right?
Sue Horvath: I'm not sure I understand that the two notes with Nant Capital have a six-month maturity date.
Jonathan Aschoff: Okay. All right. I think, I mean, congrats on the progress, but I think just one was quite critical and congrats on securing that. I think that's it for me.
Jennifer Simpson: Thank you.
Sue Horvath: Thank you.
Jennifer Simpson: Thanks, Jonathan.
Operator: Thank you, ladies and gentlemen. As we have no further questions in queue at this time, this will conclude today's conference and you may disconnect your lines at this time. And we thank you for your participation.
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