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Nuvation Bio Reports Third Quarter 2024 Financial Results and Provides Business Update Submitted New Drug Application (NDA) for taletrectinib to the U.S. Food and Drug Administration (FDA) in October for the treatment of

Key Takeaway: Nuvation Bio reported its financial results for the third quarter 2024 and provided a business update, highlighting the submission of a New Drug Application for taletrectinib to the FDA for advanced ROS1-positive non-small cell lung cancer. The company presented encouraging data from pivotal Phase 2 studies at the ESMO Congress, suggesting high efficacy rates. Despite a significant financial loss this quarter and rising expenses attributed to its recent acquisition, Nuvation remains focused on its product pipeline and future clinical advancements. An experienced CFO has been appointed to strengthen the company's financial management.

Market Sentiment Analysis

POSITIVE FACTORS

  • Nuvation Bio submitted a New Drug Application for taletrectinib, positioning it for potential commercialization.
  • Strong financials with $549.1 million in cash and marketable securities.
  • Positive data presented at ESMO regarding taletrectinib's efficacy in treating ROS1-positive NSCLC.
  • Appointment of an experienced CFO to lead financial strategies.

CONCERNS & RISKS

  • Nuvation Bio reported a net loss of $41.2 million for the quarter, an increase from $19.6 million in the previous year.
  • Rising research and development costs due to increased personnel and clinical trial expenses.
  • Dependence on regulatory approvals for the potential success of taletrectinib.

Full Press Release Details

Nuvation Bio Reports Third Quarter 2024 Financial Results and Provides Business Update
Submitted New Drug Application (NDA) for taletrectinib to the U.S. Food and Drug Administration (FDA) in October for the treatment of
patients with advanced ROS1-positive (ROS1+) non-small cell lung cancer (NSCLC), positioning Company to commercialize taletrectinib, if approved, as early as mid-2025
Presented positive pooled data from the pivotal Phase 2 TRUST-I and TRUST-II studies of taletrectinib in patients with advanced ROS1+ NSCLC at the 2024 European Society of Medical Oncology (ESMO) Congress
Appointed industry veteran Philippe Sauvage as the company s Chief Financial Officer (CFO) in October
Strong balance sheet with cash, cash equivalents, and marketable securities of $549.1 million as of September 30, 2024
New York, November 6, 2024 Nuvation Bio Inc. (NYSE: NUVB), a late clinical-stage, global biopharmaceutical company tackling
some of the greatest unmet needs in oncology, today reported financial results for the third quarter ended September 30, 2024, and provided a business update.
David Hung, M.D., Founder, President, and Chief Executive Officer of Nuvation Bio, reflected on the quarter and stated: In the third quarter, we
continued to execute on our goal of bringing taletrectinib to people living with ROS1-positive NSCLC as quickly as possible, which has been our focus since we closed the acquisition of AnHeart Therapeutics earlier this year. In October, we completed
the rolling submission of our NDA for line agnostic full approval of taletrectinib in advanced ROS1-positive NSCLC, which was supported by the pooled data from the pivotal Phase 2 TRUST-I and TRUST-II studies that we presented at ESMO. We believe that these data a confirmed objective response rate of 89% and median duration of response approaching four years in the TKI-na ve setting are the strongest data seen to date in the ROS1 space and increase taletrectinib s potential to become a
best-in-class treatment option. Additionally, we are excited about the momentum of our overall pipeline, including safusidenib, our mutant IDH1 inhibitor for both low- and high-grade diffuse IDH1-mutant glioma, where we plan to make meaningful clinical progress next year, and NUV-1511, our first drug-drug conjugate, which we continue to
dose escalate in the clinic.
Recent Pipeline Updates:
Taletrectinib, ROS1 inhibitor: Advanced ROS1+ NSCLC
Safusidenib, mIDH1 inhibitor: Diffuse
NUV-1511, drug-drug conjugate (DDC): Advanced solid tumors
BD2-selective BET inhibitor: Advanced solid tumors
Third Quarter 2024 Financial
As of September 30, 2024, Nuvation Bio had cash, cash equivalents and marketable securities of $549.1 million.
For the three months ended September 30, 2024, research and development expenses were $27.7 million, compared to $18.5 million for the three
months ended September 30, 2023. The increase was primarily due to a $6.7 million increase in personnel-related costs driven by the acquisition of AnHeart, stock-based compensation and other benefits, $2.4 million increase in
third-party costs related to research services and drug manufacturing as a result of clinical trial expense for taletrectinib and $0.1 million increase in amortization of assembled workforce.
For the three months ended September 30, 2024, general and administrative expenses were $19.6 million, compared to $7.8 million for the three
months ended September 30, 2023. The increase was due to a $5.3 million increase in personnel-related costs as a result of the acquisition of AnHeart, $4.2 million increase in sales and marketing expense, $1.8 million increase in
professional fees, $0.7 million increase in legal fees, and $0.4 million increase in occupancy expense offset by $0.4 million increase in foreign currency impact and $0.2 million decrease in insurance expense.
For the three months ended September 30, 2024, Nuvation Bio reported a net loss of $41.2 million, or $(0.15) per share. This compares to a net loss
of $19.6 million, or $(0.09) per share, for the comparable period in 2023.
Taletrectinib is an oral, potent, central nervous system-active, selective, next-generation ROS1 inhibitor specifically designed for the treatment of patients
with advanced ROS1+ NSCLC. Taletrectinib is being evaluated for the treatment of patients with advanced ROS1+ NSCLC in two Phase 2 single-arm pivotal studies: TRUST-I
(NCT04395677) in China, and TRUST-II (NCT04919811), a global study.
Taletrectinib has been granted Orphan Drug
Designation by the U.S. FDA for the treatment of patients with ROS1+ NSCLC and other NSCLC indications, and Breakthrough Therapy Designations by both the U.S. FDA and China s National Medical Products Administration (NMPA) for the treatment of
patients with locally advanced or metastatic ROS1+ NSCLC. Based on pooled results of the TRUST-I and TRUST-II clinical studies, Nuvation Bio submitted an NDA for taletrectinib to the U.S. FDA for the treatment of patients with advanced ROS1+ NSCLC
(line agnostic, full approval). Based on results of the TRUST-I clinical study, China s NMPA has accepted and granted Priority Review Designations to New Drug Applications for taletrectinib for the
treatment of adult patients with locally advanced or metastatic ROS1+ NSCLC who either have or have not previously been treated with ROS1 TKIs.
Nuvation Bio is a late clinical-stage, global biopharmaceutical company tackling some of the greatest unmet needs in oncology by developing differentiated and
novel product candidates. Nuvation Bio s portfolio of development candidates includes taletrectinib (ROS1), safusidenib (mIDH1), NUV-1511 (DDC), and NUV-868 (BET).
Nuvation Bio was founded in 2018 by biopharma industry veteran David Hung, M.D., who previously founded Medivation, Inc., which brought to patients one of the world s leading prostate cancer medicines. Nuvation Bio has offices in New York, San
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe
harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are sometimes accompanied by words such as believe, may, will, estimate,
continue, anticipate, intend, expect, should, would, plan, predict, potential, seem, seek, future,
outlook and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, our expectations regarding FDA
acceptance, the length of the review period, and full approval of a U.S. NDA for taletrectinib, the timing of FDA approval and commercial launch, our expectations of establishing a commercial organization, taletrectinib s best-in-class therapeutic potential in advanced ROS1+ NSCLC, the potential therapeutic benefit of Nuvation Bio s product candidates, the advancement of our clinical
programs, and the strength of Nuvation Bio s balance sheet. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management team of Nuvation Bio and are not
predictions of actual performance. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ from those anticipated by the forward-looking statements, including but not limited to the
challenges associated with conducting drug discovery and initiating or conducting clinical studies due to, among other things, difficulties or delays in the regulatory process, enrolling subjects or manufacturing or acquiring necessary products; the
emergence or worsening of adverse events or other undesirable side effects; risks associated with preliminary and interim data, which may not be representative of more mature data; and competitive developments. Risks and uncertainties facing
Nuvation Bio are described more fully in its Form 10-Q filed with the SEC on November 6, 2024 under the heading Risk Factors, and other documents that Nuvation Bio has filed or will file with
the SEC. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this press release. Nuvation Bio disclaims any obligation or undertaking to update, supplement or revise any forward-looking
statements contained in this press release.
Nuvation Bio Investor Contact:
Nuvation Bio Media Contact:
NUVATION BIO INC. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share data)
September 30, 2024 December 31, 2023
Assets
Current assets:
Cash and cash equivalents $ 30,036 $ 42,649
Accounts receivable, net of allowance for credit loss of $nil 112
Prepaid expenses and other current assets 11,598 1,519
Marketable securities 519,099 568,564
Interest receivable on marketable securities 4,140 3,702
Total current assets 564,985 616,434
Property and equipment, net of accumulated depreciation of $839 and $666, respectively 719 717
Intangible assets, net of accumulated amortization of $291 2,779
Operating lease right-of-use assets 2,472 3,605
Lease security deposit 144 141
Other non-current assets 480 587
Total assets $ 571,579 $ 621,484
Liabilities and stockholders equity
Current liabilities:
Accounts payable $ 12,380 $ 2,209
Current operating lease liabilities 1,781 1,972
Contract liabilities, current portion 12,942
Short-term borrowings 8,426
Accrued expenses 23,506 9,793
Total current liabilities 59,035 13,974
Warrant liability 908 353
Contract liabilities, net of current portion 7,937
Non-current operating lease liabilities 985 2,035
Total liabilities 68,865 16,362
Stockholders equity
Class A and Class B common stock and additional paid in capital, $0.0001 par value per share; 1,060,000,000 (Class A 1,000,000,000, Class B 60,000,000) shares authorized as of September 30, 2024 and December 31, 2023, 336,248,642 (Class A 335,248,642, Class B 1,000,000) and 219,046,219 (Class A 218,046,219, Class B 1,000,000) shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively 1,362,631 947,745
Accumulated deficit (861,298 ) (342,804 )
Accumulated other comprehensive income 1,381 181
Total stockholders equity 502,714 605,122
Total liabilities and stockholders equity $ 571,579 $ 621,484
NUVATION BIO INC. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Revenue $ 727 $ $ 2,162 $
Cost of revenue 1,515 2,862
Gross deficit (788 ) (700 )
Operating expenses:
Research and development 27,731 18,561 69,820 55,938
Acquired in-process research and development 425,070
General and administrative 19,582 7,778 43,095 23,053
Total operating expenses 47,313 26,339 537,985 78,991
Loss from operations (48,101 ) (26,339 ) (538,685 ) (78,991 )
Other income (expense):
Interest income 6,726 6,523 21,000 17,588
Interest expense (120 ) (252 )
Investment advisory fees (237 ) (228 ) (749 ) (689 )
Change in fair value of warrant liability 533 383 209 260
Realized (loss) gain on marketable securities (11 ) 12 (17 ) (183 )
Total other income (expense), net 6,891 6,690 20,191 16,976
Loss before income taxes (41,210 ) (19,649 ) (518,494 ) (62,015 )
Provision for income taxes
Net loss $ (41,210 ) $ (19,649 ) $ (518,494 ) $ (62,015 )
Net loss attributable to common stockholders
Net loss per share attributable to common stockholders, basic and diluted $ (0.15) $ (0.09) $ (2.11) $ (0.28)
Weighted average common shares outstanding, basic and diluted 273,565 218,935 245,885 218,842
Comprehensive loss:
Net loss $ (41,210 ) $ (19,649 ) $ (518,494 ) $ (62,015 )
Other comprehensive loss, net of taxes:
Currency translation adjustment (742 ) (594 )
Unrealized gain on available-for-sale securities 3,389 1,097 1,794 2,228
Comprehensive loss $ (38,563 ) $ (18,552 ) $ (517,294 ) $ (59,787 )

Frequently Asked Questions

What is taletrectinib used for?

Taletrectinib is designed to treat advanced ROS1-positive non-small cell lung cancer.

When was the NDA for taletrectinib submitted?

The NDA for taletrectinib was submitted to the FDA in October 2024.

What are the recent financial results for Nuvation Bio?

Nuvation Bio reported a net loss of $41.2 million for Q3 2024.

Who is the new CFO of Nuvation Bio?

Philippe Sauvage was appointed as Chief Financial Officer in October 2024.

What was the cash position as of September 30, 2024?

As of September 30, 2024, Nuvation Bio had $549.1 million in cash and securities.

Last updated: Nov 6, 2024