Sign in

You're signed outSign in or to get full access.

CB

Codiak BioSciences, Inc. (CDAKQ)·Q1 2022 Earnings Summary

Executive Summary

  • Q1 2022 revenue was $12.7 million, down $0.5 million year over year, driven by collaboration revenue recognition (primarily Jazz) and no Sarepta revenue following termination . EPS was -$0.36 and net loss was $8.0 million; cash and cash equivalents were $56.5 million at quarter-end .
  • Management reiterated late 1H 2022 clinical data catalysts for exoSTING (dose cohorts 1–5) and initial CTCL data for exoIL-12; first patients for exoASO-STAT6 anticipated in 1H 2022 .
  • Operating spending moderated: R&D fell to $14.2 million (from $16.6 million YoY) and G&A was flat at $6.7 million .
  • Liquidity remains a key risk: the company disclosed substantial doubt regarding going concern, expecting current cash to be insufficient for 12 months without additional financing or partnerships .

What Went Well and What Went Wrong

What Went Well

  • Collaboration execution: Recognized $12.7 million total revenue, largely from Jazz; recognized remaining deferred revenue from NRAS discontinuation ($12.6 million), evidencing progress under the collaboration structure .
  • Cost discipline: R&D expense declined by $2.3 million YoY to $14.2 million, primarily due to lower lab and personnel costs tied to the Lonza manufacturing arrangement .
  • Pipeline momentum and near-term catalysts: “We remain on track to deliver on several key milestones by the end of this quarter, including results from all five dose cohorts in our exoSTING trial, initial CTCL patient data from the exoIL-12 program, and commencement of dosing in the Phase 1 study of our third candidate… exoASO-STAT6.” — Douglas E. Williams, Ph.D., President & CEO .

What Went Wrong

  • Enrollment challenges: exoIL-12 CTCL enrollment at UK sites remained difficult; protocol enhancements were needed to broaden the eligible population and add other cutaneous malignancies (Kaposi’s sarcoma, Merkel cell carcinoma, SCC) .
  • Funding risk: Management disclosed that existing cash ($56.5 million) is insufficient for at least 12 months under the current plan; additional capital, collaborations, or alternative financing will be required, introducing execution and dilution risk .
  • Portfolio transitions: Sarepta collaboration terminated in December 2021 (no Q1 2022 revenue), increasing dependency on Jazz and internal programs; while Jazz can revive targets, NRAS was discontinued and recognized via deferred revenue release .

Financial Results

MetricQ3 2021Q4 2021Q1 2022
Revenue ($USD Millions)$1.157 $7.697 $12.704
Net Income - (IS) ($USD Millions)$(21.702) $16.662 $(8.028)
Diluted EPS ($USD)$(0.97) $0.74 $(0.36)
Cash and Equivalents ($USD Millions)$98.584 $76.938 $56.494

Segment/Partner Revenue Breakdown:

MetricQ1 2021Q1 2022
Collaboration Revenue - Jazz ($USD Millions)$11.618 $12.704
Collaboration Revenue - Sarepta ($USD Millions)$1.573 $0.000

KPIs:

KPIQ1 2021Q1 2022
R&D Expense ($USD Millions)$16.550 $14.248
G&A Expense ($USD Millions)$6.588 $6.707
Deferred Revenue (End of Period, $USD Millions)$—$30.945
Weighted Avg Shares (Basic & Diluted)20,333,398 22,436,938

Notes:

  • Q4 2021 net income reflects a nonrecurring $33.3 million gain on disposition related to the Lonza manufacturing transaction .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial Guidance (Revenue/EPS/OpEx)FY/Q2 2022Not providedNot providedMaintained (no guidance)
Clinical MilestonesLate 1H 2022exoSTING dose cohorts 1–5 data; exoIL-12 initial CTCL data; exoASO-STAT6 first patientsReaffirmedMaintained
ManufacturingOngoing (2022–2025)$65M in-kind services via Lonza over ~4 yearsReaffirmed; sublease receipts ongoingMaintained

Earnings Call Themes & Trends

Note: No Q1 2022 earnings call transcript was available in filings or our document catalog after targeted searches.

TopicPrevious Mentions (Q3 2021)Previous Mentions (Q4 2021)Current Period (Q1 2022)Trend
Clinical catalysts (exoSTING, exoIL-12)exoSTING initial data expected Q4; exoIL-12 CTCL data pushed to H1 2022 due to UK site constraints Positive initial exoSTING data cohorts 1–3; reiterated late 1H 2022 for cohorts 1–5 and CTCL data Late 1H 2022 timing reaffirmed for exoSTING 1–5 and exoIL-12 CTCL initial data Consistent; execution-dependent
Enrollment and protocol adjustments (exoIL-12)UK COVID-related constraints impacting CTCL site enrollment UK restrictions abating; still exploring options to facilitate enrollment Protocol broadened to include additional CTCL stages and cutaneous malignancies responsive to rIL-12 Improving via protocol changes
New program initiation (exoASO-STAT6)IND filing expected Q4 2021 IND cleared; first-in-human dosing anticipated 1H 2022 First patients anticipated 1H 2022 On track
Manufacturing strategy (Lonza)Strategic collaboration with Lonza announced Transaction closed; $65M in-kind services; sublease in place Ongoing MSA/sublease; free/discounted manufacturing time not yet utilized Stable; execution ongoing
Liquidity/going concernNot emphasized—Substantial doubt about going concern; additional funding required Deteriorating liquidity

Management Commentary

  • “We are making exciting progress with our clinical and preclinical programs… we remain on track to deliver… results from all five dose cohorts in our exoSTING trial, initial CTCL patient data from the exoIL-12 program, and commencement of dosing… exoASO-STAT6.” — Douglas E. Williams, Ph.D., President & CEO .
  • “Enrollment in the exoIL-12 study at trial sites in the UK has been challenging… protocol enhancements… include a broader CTCL population… and potential to enroll patients with cutaneous malignancies responsive to rIL-12…” — Douglas E. Williams, Ph.D. .
  • “We are making a strong start in 2022 thanks to progress… plan to report clinical data for two… and initiate clinical development for a third candidate all in the first half of the year.” — Douglas E. Williams, Ph.D. .

Q&A Highlights

  • No Q1 2022 earnings call transcript was available in the document set or SEC-linked catalog; therefore, Q&A themes could not be extracted.

Estimates Context

  • S&P Global consensus estimates were unavailable for CDAKQ due to missing SPGI mapping; consequently, an estimates-based comparison could not be provided.
  • Third-party coverage indicated Q1 2022 EPS of -$0.36 versus a Zacks consensus of -$0.80 (beat), and narrative noted revenue “topped” estimates; use caution as methodology differs from S&P Global .

Key Takeaways for Investors

  • Near-term catalysts: exoSTING dose escalation data across cohorts 1–5 and initial exoIL-12 CTCL data in late 1H 2022; first patients for exoASO-STAT6 in H1 2022 — monitor timing and quality of response/biomarker signals .
  • Liquidity risk is material: cash of $56.5 million and explicit going concern disclosure imply potential equity financing, strategic partnerships, or program prioritization; position sizing should reflect funding overhang .
  • Collaboration dynamics: Jazz remains the primary revenue source with deferred revenue recognition events (NRAS discontinuation); watch for replacement target nominations or revived targets to sustain collaboration economics .
  • Manufacturing scalability: Lonza MSA/sublease provides up to ~$65 million of in-kind services and capacity, potentially de-risking CMC as programs advance; track utilization and any technology transfers .
  • Clinical execution: exoIL-12 enrollment challenges addressed via protocol expansion; improved feasibility could accelerate readouts, but recruitment remains a variable to monitor .
  • Nonrecurring items: Q4 2021 profit was driven by a one-time gain on disposition; underlying operating losses persist, emphasizing the importance of pipeline data to attract capital .
  • Estimate comparisons via S&P Global were unavailable; adjust models using company-reported metrics and third-party estimates with caution until SPGI coverage is restored.