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CAPRICOR THERAPEUTICS, INC. (CAPR)·Q3 2025 Earnings Summary
Executive Summary
- Q3 2025 delivered no revenue and wider losses as Capricor invested ahead of pivotal HOPE-3 data; cash, cash equivalents and marketable securities ended at $98.6M, with runway into Q4 2026 .
- EPS modestly beat consensus by ~$0.01 (actual -$0.54 vs -$0.55 estimate), while revenue missed modest expectations (actual $0 vs $0.48M estimate), reflecting the end of prior contract revenue recognition in 2024 .*
- Regulatory path clarified: following a Type A meeting, FDA supported submission of HOPE-3 results to address the CRL; resubmission will be classified Type 2 (up to six-month review), and topline HOPE-3 is imminent in Q4 2025 .
- Key catalyst: HOPE-3 top-line readout and subsequent Type 2 BLA resubmission for DMD cardiomyopathy; potential $80M milestone from NS Pharma and a Priority Review Voucher if approval occurs before 9/30/2026 could materially extend runway .
What Went Well and What Went Wrong
What Went Well
- “We are entering one of the most pivotal periods…we believe we are well positioned for potential approval and launch,” highlighting confidence in Deramiocel and commercial readiness (PLI accepted) .
- FDA Type A meeting outcome supports submission of HOPE-3 data to address the CRL; resubmission designated Type 2, providing a clear review framework .
- Mechanism-of-action publication and validated potency assay reinforce biological consistency across >100 lots, underpinning CMC quality for commercialization .
What Went Wrong
- Revenue fell to $0 vs $2.26M in Q3 2024 due to full recognition of prior NS Pharma milestones by year-end 2024, increasing reliance on balance sheet and milestones until approval .
- Operating expenses rose to $26.3M (vs $15.3M YoY) on HOPE-3 execution and commercial build-out; net loss widened to $24.6M (vs $12.6M YoY) .
- Cash declined to $98.6M (from $151.5M at 12/31/24), and cash runway guidance reduced from “into 2027” earlier in the year to “into Q4 2026” post CRL .
Financial Results
Quarter-over-Quarter Trend (Q1 → Q2 → Q3 2025)
Year-over-Year (Q3 2025 vs Q3 2024)
Actual vs Wall Street Consensus (S&P Global)
Values retrieved from S&P Global.*
KPIs and Operational Readiness
Guidance Changes
Earnings Call Themes & Trends
Management Commentary
- CEO: “We believe we are well positioned for potential approval and launch… With our commercial-ready manufacturing facility in place and our Pre-License Inspection completed…” .
- CFO: “We ended the quarter with approximately $100 million in cash… eligible to receive $80 million milestone payment from NS Pharma and a priority review voucher if approved” .
- CEO on regulatory flexibility: FDA will review “all of the data… make decisions based on… preponderance of all the data” for cardiomyopathy label .
- CEO on SAP and Cohort B: Focus on Cohort B to demonstrate efficacy of commercial-scale product; Hochberg approach preserves alpha for secondaries .
Q&A Highlights
- Topline disclosure: Initial report will include primary and key secondary endpoints; call to explain ramifications promptly after unblinding .
- Statistical plan: Cohort B efficacy emphasis; Hochberg adjustment; alpha allocation clarified; potential for regulatory flexibility if PUL misses but cardiac LVEF strongly hits .
- Safety/readout operations: Tri-level independent MRI reading with adjudication process; blinded to timepoint/patient/treatment .
- Spend trajectory: HOPE-3 costs wind down while manufacturing and launch prep ramp; burn watched closely; NIAID funds StealthX Phase 1 .
- Label strategy: Initial cardiomyopathy focus; skeletal muscle label expansion considered post initial approval discussions .
Estimates Context
- Q3 2025: EPS beat by ~$0.01 (actual -$0.54 vs -$0.55 estimate); revenue missed ($0 vs $0.48M), reflecting cessation of NS Pharma revenue recognition post-2024 .*
- Q2 and Q1 2025: EPS and revenue both missed consensus amid pre-approval status and ongoing trial/commercial readiness spend .*
- Near-term estimate implications: Street may adjust revenue to zero until approval and rebase EPS for higher OpEx pre-launch; post-HOPE-3/Type 2 acceptance, models likely shift to milestone scenarios/pricing ramps .*
Values retrieved from S&P Global.*
Key Takeaways for Investors
- Imminent HOPE-3 top-line is the near-term stock catalyst; strong cardiac LVEF data could be pivotal for cardiomyopathy label under FDA’s stated flexibility .
- Type 2 resubmission provides a defined review window (up to six months); faster timelines are possible depending on data strength and FDA workload precedents .
- Commercial readiness is advanced: PLI accepted, GMP systems operational, physician education and market access underway—reducing launch execution risk .
- Balance sheet supports execution through Q4 2026; potential $80M NS Pharma milestone and PRV could extend runway substantially upon approval .
- Q3 EPS modest beat vs consensus; revenue misses across quarters reflect end of contract recognition—do not signal demand issues; treat pre-revenue quarters as non-critical for top line .*
- Watch Cohort B efficacy and MRI adjudication details; efficacy with commercial material is central to minimizing CMC-related review risk .
- Secondary platform optionality (StealthX) has 1H 2026 data timing and potential partnership path; not core to DMD thesis but adds pipeline value .