Corvus Pharmaceuticals, Inc. Q3 FY2024 earnings call

• Soquelitinib is advancing with a Phase III trial for peripheral T-cell lymphoma (PTCL) enrolling patients and a Phase I trial for atopic dermatitis (AD) with Cohort 1 completed and Cohort 2 enrolling. Soquelitinib is a first-in-class oral therapy with a novel mechanism targeting ITK.
• Preclinical data on soquelitinib in systemic sclerosis will be presented at the American College of Rheumatology meeting. For ciforadenant, the Phase Ib/II clinical trial in metastatic renal cell cancer (RCC) continues enrolling patients and meeting prespecified statistical hurdles, with new data on prostate cancer at the Society for Immunotherapy of Cancer Annual Meeting highlighting its potential to overcome immunotherapy resistance.
• In PTCL Phase Ib, four patients remain on therapy, including six complete responses (CRs) and one partial response (PR) with ongoing tumor regression. In the AD Phase I trial, improvement in EASI scores is seen within the first week, and durable effects are expected due to the mechanism of action.

Research and development expenses in the third quarter of 2024 totaled $5.2 million compared to $4 million in the same period in 2023, an increase of $1.2 million primarily due to higher soquelitinib clinical trial expenses. The net loss for the third quarter of 2024 was $40.2 million, including noncash losses related to Angel Pharmaceuticals and warrant liability changes. As of September 30, 2024, Corvus had cash, cash equivalents, and marketable securities totaling $41.7 million, up from $27.1 million at December 31, 2023. Cash runway is anticipated to last into 2026 based on current plans.

• Upcoming milestones include preclinical data presentation at the American College of Rheumatology meeting, initial data from Cohort 1 and 2 of the AD Phase I trial in December, final data from all four cohorts of the AD Phase I trial in the first half of 2025, initiation of a Phase II solid tumor trial with soquelitinib in early 2025, and continuing enrollment in the PTCL Phase III trial.
• Cash, including recent warrant exercises, provides runway into 2026 to execute these milestones.

Forward-looking statements are subject to risks and uncertainties described in Corvus' quarterly report on Form 10-Q for the quarter ended September 30, 2024, and other SEC filings, which may cause actual results to differ materially from forward-looking statements.

Q: Li Watsek asked about the kinetics of ITK inhibition on clinical scores in AD, expected improvement after the 28-day mark, and the bar for success given it's an oral drug.

A: Richard Miller responded that response kinetics are quick, expecting criteria for success similar to approved agents like Dupixent, with 28-day data to be compared to analogous compounds.

Q: Roger Song inquired about the follow-up time period for AD trial cohorts and dose dependence.

A: Richard Miller stated they will report 28-day data, with Cohort 1 having complete follow-up, and the purpose of the study is to determine the optimal dose considering lymphoma study insights.

Q: Aydin Huseynov asked about AD patient prior therapy, PTCL Phase Ib updates, and systemic sclerosis.

A: Richard Miller said AD patients enrolled so far failed topical therapies, PTCL Phase Ib has 4 patients on therapy with CRs and a PR showing continued improvement, and preclinical data on systemic sclerosis focuses on lung FVC and fibrotic endpoints.

Q: Graig Suvannavejh asked about AD readout details and competitive landscape.

A: Richard Miller mentioned reporting EASI-50, EASI-75, etc., and stated it's hard to comment on competitive landscape relative to other oral AD programs in clinic.

Q: Jeff Jones asked about PTCL Phase III trial PFS and renal study patient selection.

A: Richard Miller said patients going to transplant in PTCL trial are censored, criteria for success in PTCL is based on protocol-defined statistical power, and renal study collects data on T-cell health without using it as eligibility criteria.