Carisma Therapeutics Inc. (CARM)·Q1 2024 Earnings Summary

Executive Summary

• Q1 2024 delivered stable collaboration revenue ($3.397M) and a narrower GAAP net loss ($18.978M; $(0.46) EPS) versus prior year, as G&A fell on lapping merger-related costs and R&D rose modestly on CT-0525 preclinical spend .
• Strategic pivot affirmed: CT-0525 (anti‑HER2 CAR‑Monocyte) is now the lead program with first patient dosing targeted in Q2 and initial data by year‑end 2024; CT‑0508 recruitment ceased and CT‑1119 paused pending financing .
• Cash and cash equivalents were $56.5M, with runway into Q3 2025 maintained, supported by restructuring (≈37% workforce reduction) and reprioritization .
• Additional scientific momentum: AACR combo sub‑study (CT‑0508+pembrolizumab) safety read and ASGCT fibrosis proof‑of‑concept presented, with liver fibrosis development candidate nomination targeted for Q1 2025 .
• No earnings call transcript was available; Wall Street consensus estimates via S&P Global were unavailable, limiting beat/miss assessment for this quarter [earnings-call-transcript ListDocuments: none] [functions.GetEstimates error].

What Went Well and What Went Wrong

What Went Well

• CT‑0525 elevated to lead program with clear near‑term milestones: “We are excited to shift our attention to the development of CT‑0525, which we believe has the potential to significantly increase anti‑tumor activity” .
• Lower G&A YoY reflecting lapping merger costs: G&A was $5.4M vs $9.6M YoY, primarily due to $3.5M lower personnel costs (severance/legal tied to the merger) and $0.7M lower professional fees .
• External validation and pipeline expansion beyond oncology: ASGCT data showed engineered macrophages reduced liver fibrosis (116% and 45% reductions vs control in two models), supporting a fibrosis candidate nomination in Q1 2025 .

What Went Wrong

• Revenue trending sequentially lower: Q1 collaboration revenue was $3.397M vs $4.289M in Q4 2023 (down QoQ), though up vs $3.243M in Q1 2023 .
• R&D increased YoY to $17.5M driven by personnel and CT‑0525/CT‑1119 preclinical costs; while strategic, it sustained high operating losses (Q1 operating loss $19.510M) .
• CT‑0508 new patient recruitment ceased and CT‑1119 paused, reducing breadth of ex vivo oncology pipeline in near term pending capital, which may concern investors focused on multiple shots on goal .

Financial Results

Notes and drivers:

• YoY R&D +$0.8M driven by personnel (+$0.9M), CT‑0525 preclinical (+$0.7M), CT‑1119 (+$0.4M), partially offset by CT‑0508 (−$0.7M) and facility/other decreases (−$0.4M) .
• YoY G&A −$4.1M primarily due to lapping merger-related severance and legal fees .
• Cash runway reiterated into Q3 2025 based on $56.5M cash and cost savings from revised operating plan .

Guidance Changes

No explicit revenue/EPS/margin guidance ranges were provided.

Earnings Call Themes & Trends

(No Q1 2024 earnings call transcript available.)

Management Commentary

• “We are pleased by the continued clinical validation of our anti‑HER2 CAR‑M program as evidenced by the initial data from CT‑0508 and are excited to shift our attention to the development of CT‑0525, which we believe has the potential to significantly increase anti‑tumor activity.” — Steven Kelly, President & CEO .
• “Dosing of the first patient in the CT‑0525 Phase 1 trial is a significant step… marking the first time a CAR‑Monocyte is tested in humans in the solid tumor setting.” — Eugene P. Kennedy, M.D., Chief Medical Officer .
• “Engineered macrophages… significantly reduced fibrosis in the liver… We look forward to further progressing the liver fibrosis program, which is our first expansion outside of oncology.” — Michael Klichinsky, PharmD, PhD, Co‑founder & CSO .

Q&A Highlights

• No Q1 2024 earnings call transcript was available; no Q&A disclosures found [earnings-call-transcript ListDocuments: none].

Estimates Context

• We attempted to retrieve Wall Street consensus EPS and revenue estimates via S&P Global (Capital IQ), but data was unavailable due to request limits; therefore, beats/misses versus consensus cannot be assessed for Q1 2024 at this time [functions.GetEstimates error].
• Investors should monitor consensus updates ahead of CT‑0525 initial data in late 2024, which may drive estimate revisions.

Key Takeaways for Investors

• Strategic clarity: CT‑0525 is the lead asset with first patient dosing targeted for Q2 and initial data by YE 2024; this is the near‑term clinical catalyst likely to drive stock narrative .
• Operating discipline: G&A fell YoY on lapping merger costs; restructuring and reprioritization support runway into Q3 2025, mitigating financing risk in the near term .
• Scientific momentum: AACR combo safety read (CT‑0508+pembro) and ASGCT fibrosis PoC broaden platform validation across oncology and immunology .
• Revenue visibility: Collaboration revenue remains modest and lumpy ($3.397M in Q1; down QoQ), emphasizing dependence on milestone events and external partnerships .
• Balance sheet watch: Cash declined to $56.5M and deferred revenue remains substantial ($45.0M noncurrent); track cash burn against clinical timelines and any business development inflows .
• Pipeline breadth narrowed near term (CT‑1119 paused; CT‑0508 new recruitment ceased), focusing resources on CT‑0525 and in vivo CAR‑M; watch for additional funding or partnerships to re‑expand .
• Trading lens: Expect sentiment to hinge on trial progress (site activation/enrollment pace) and initial CT‑0525 data by YE 2024; any positive efficacy or safety signals could be a meaningful upside catalyst.

Appendix: Additional Quantitative Detail

Non‑GAAP Adjustments: None disclosed; all EPS figures are GAAP from unaudited statements .