Aptevo Therapeutics Inc. (APVO)·Q2 2024 Earnings Summary

Executive Summary

• Net loss improved year over year to $5.9M from $7.9M, with diluted EPS at $(1.67) vs $(53.95) in Q2 2023; loss from operations narrowed to $(6.0)M from $(8.2)M YoY, reflecting reduced R&D and G&A spending .
• Cash was $8.1M at June 30, 2024; pro forma cash was $10.4M including ~$2.75M July 1 equity raise, extending cash runway into 2025 and funding upcoming clinical milestones .
• Clinical catalysts: APVO436 Phase 1b/2 dose optimization program planned to initiate in the current quarter (post-Q2), and ALG.APV-527 dose-escalation trial is >90% enrolled with additional data expected in Q3 2024 .
• No Q2 2024 earnings call transcript was available; Wall Street consensus estimates from S&P Global were unavailable at time of retrieval, limiting beat/miss assessment (will need update when accessible).

What Went Well and What Went Wrong

What Went Well

• Operating discipline: R&D fell by $1.9M YoY to $3.6M driven by conclusion of APVO436 Phase 1b dose expansion and lower preclinical/employee costs; G&A declined $0.3M YoY to $2.4M on lower employee/consulting costs .
• Strong APVO436 signal: Phase 1b dose expansion showed a 91% clinical benefit rate in venetoclax-naïve AML patients with meaningful durations of remission and three patients progressing to transplant; CRS incidence was ~27% with most Grade 1–2 .
• Liquidity bolstered: Registered direct offering of $2.75M provided “critical resources… extending cash runway into 2025,” sustaining progress through near-term milestones .
  • Quote: “This trial represents a crucial step in our mission to develop a new therapeutic regimen for patients fighting this challenging cancer.” — Marvin White, President & CEO .
  • Quote: “Our recent $2.75 million registered direct offering will provide critical resources… extending cash runway into 2025.” — Marvin White .

What Went Wrong

• Continued losses: Net loss of $5.9M and loss from operations of $(6.0)M underscore ongoing cash burn in a pre-revenue clinical stage context .
• Lower interest income: Other income from continuing operations was $0.1M in Q2 vs $0.2M YoY, reflecting lower interest income from money market accounts .
• Milestone timelines slipped: APVO436 Phase 1b/2 dose optimization initiation moved from “expected 2Q 2024” to “planned this quarter” (suggesting Q3 start); ALG.APV-527 interim data timing shifted from 1H24 to Q3 2024 .

Financial Results

Note: The Q2 press release text references “quarter ended March 31, 2024” but accompanying financial statements are for the three months ended June 30, 2024; we rely on the statements and balance sheet dates for financials .

Income Statement (Quarterly)

Balance Sheet Snapshot

KPIs (Clinical Program Highlights)

Guidance Changes

Earnings Call Themes & Trends

Note: No Q2 2024 earnings call transcript was found in the document catalog.

Management Commentary

• “After the successful completion of our APVO436 dose expansion trial… we worked in the second quarter to finalize plans for the launch of the first part of our Phase 1b/2 trial… This trial represents a crucial step in our mission to develop a new therapeutic regimen for patients fighting this challenging cancer.” — Marvin White, President & CEO .
• “Dosing continues in our ongoing Phase 1 trial to evaluate ALG.APV-527… and we look forward to announcing additional data from that trial in the third quarter.” — Marvin White .
• “Additionally, our recent $2.75 million registered direct offering will provide critical resources… extending cash runway into 2025.” — Marvin White .
• “We are excited… we know [APVO436] is safe, well tolerated, clinically active and shows a favorable duration of remission… we will target frontline AML patients who are venetoclax treatment naïve.” — Marvin White (FY23 release) .
• “We are pleased with the progress of the ALG.APV-527 Phase 1 clinical program… We believe this drug has the potential to impact patients in large patient populations…” — Dirk Huebner, MD, CMO .

Q&A Highlights

• No Q2 2024 earnings call transcript was available; therefore, no Q&A themes or guidance clarifications can be reported for this period.

Estimates Context

• S&P Global Wall Street consensus for Q2 2024 EPS and revenue was unavailable at the time of retrieval due to system limits; as a result, we cannot assess beats/misses this quarter (to be updated once accessible).
• Aptevo ceased reporting royalty revenue after Q1 2022 under its HCR agreement, indicating no ongoing reported revenue streams; earnings results are driven by operating expenses and financing income rather than product revenues .

Key Takeaways for Investors

• Cost discipline is evident: R&D and G&A declines narrowed loss from operations and net loss YoY, improving cash burn trajectory .
• Liquidity runway into 2025 reduces near-term financing pressure and supports execution of key clinical milestones (APVO436 dose optimization start; ALG.APV-527 data in Q3) .
• APVO436 continues to show a compelling clinical profile (91% clinical benefit rate; manageable CRS), positioning it as a differentiated AML candidate in combination with venetoclax + azacitidine .
• ALG.APV-527 demonstrates durable stable disease and biologic activity signals; enrollment progress (>90%) increases visibility to upcoming data readout in Q3 2024 .
• Timelines shifted modestly (from 2Q to 3Q starts/readouts), a watch item for execution risk; monitor for actual initiation and data delivery .
• With no current revenues and continued quarterly losses, stock reaction is likely to hinge on clinical data quality, initiation of APVO436 Phase 1b/2, and any partnering or financing updates .
• Update beat/miss view once S&P Global consensus is accessible; absence of estimates this quarter reduces near-term trading signal clarity.

Sources: Q2 2024 8-K and press release including financial statements and business update ; Q1 2024 8-K and press release ; FY2023 results 8-K .