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Codiak BioSciences, Inc. (CDAKQ)·Q2 2022 Earnings Summary

Executive Summary

  • Q2 2022 total revenue was $13.145M, up sharply year-over-year from $0.890M, driven by deferred revenue recognized under the Jazz Pharmaceuticals collaboration; net loss narrowed to $6.775M, with diluted EPS of $(0.30) .
  • Management reported platform-validating Phase 1 data for exoSTING and exoIL-12 and plans to initiate Phase 2 trials for both in 1H 2023; CEPI agreed to provide up to $2.5M seed funding to advance the pan Betacoronavirus program .
  • Operating cost discipline continued: R&D fell to $12.798M from $15.419M YoY; G&A increased modestly to $7.364M, primarily due to legal/IP services .
  • No formal financial guidance provided; initiation of Phase 2 programs and exoASO-STAT6 Phase 1 readout in 1H 2023 are the near‑term catalysts; note management’s caution that trial timing is dependent on sufficient cash resources .

What Went Well and What Went Wrong

What Went Well

  • Platform validation: Phase 1 data showed repeat dosing of exoSTING and exoIL-12 with tumor retention, no systemic exposure, and antitumor activity in injected and uninjected lesions; “we were able to deliver repeat doses…with no observed systemic exposure or associated toxicity…while demonstrating tumor shrinkage” (Douglas E. Williams, Ph.D.) .
  • Revenue recognition: Q2 collaboration revenue recognized from Jazz drove material YoY revenue growth and significantly reduced net loss vs. prior year .
  • exoIL-12 safety and activity: In CTCL patients, >20 injections with no Grade ≥3 AEs, no SAEs; partial response and lesion regressions in injected and non-injected lesions .

What Went Wrong

  • Cash runway compression: Cash, cash equivalents, and marketable securities declined to $41.8M as of June 30, 2022 (from $56.5M at March 31, 2022; $76.9M at Dec 31, 2021), increasing sensitivity of execution timelines to financing .
  • G&A expense ticked up YoY to $7.364M (from $6.937M), driven by legal/IP professional services, adding pressure to opex despite R&D reductions .
  • Guidance clarity narrowed: June 30 update targeted Q1 2023 Phase 2 starts for exoSTING/exoIL-12, while the August 4 press release framed timing as 1H 2023, a broader window that can signal timing risk pending resources .

Financial Results

MetricQ2 2021Q1 2022Q2 2022
Revenue ($USD Millions)$0.890 $12.704 $13.145
Net Loss ($USD Millions)$21.809 $8.028 $6.775
Diluted EPS ($USD)$(0.99) $(0.36) $(0.30)
R&D Expense ($USD Millions)$15.419 $14.248 $12.798
G&A Expense ($USD Millions)$6.937 $6.707 $7.364
Net Loss Margin (%)(2449.3%) (63.2%) (51.5%)
Segment Revenue DetailQ2 2021Q1 2022Q2 2022
Collaboration Revenue ($USD Millions)$0.890 $12.704 $13.145
Total Revenue ($USD Millions)$0.890 $12.704 $13.145
KPIsQ4 2021Q1 2022Q2 2022
Cash & Equivalents ($USD Millions)$76.938 $56.494 $41.785
Deferred Revenue – Current ($USD Millions)$12.963 $0.442 $0.292
Deferred Revenue – Long-term ($USD Millions)$30.686 $30.503 $17.341
Weighted Avg Shares (Basic & Diluted)22,373,607 (Q4) 22,436,938 22,493,879

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
exoSTING Phase 2 initiation (Bladder cancer)Program timingQ1 2023 1H 2023 Timeline broadened
exoIL-12 Phase 2 initiation (Expanded tumor types)Program timingQ1 2023 1H 2023 Timeline broadened
exoASO-STAT6 Phase 1 dataReadout timingDosing start 1H 2022; no data timing Initial data 1H 2023 New explicit timeline
Financial guidance (revenue, margins, opex)FY/Q2None provided None provided Maintained “no formal guidance”
CEPI seed fundingPreclinical fundingN/AUp to $2.5M to complete preclinical/identify clinical candidate New funding commitment

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2021, Q1 2022)Current Period (Q2 2022)Trend
R&D execution (exoSTING, exoIL-12)exoSTING cohorts 1–3 positive; progressing to cohorts 4–5; exoIL-12 CTCL advancement Platform‑validating Phase 1 datasets; RP2D identified for both programs Strengthening clinical validation
Safety/tolerabilityPredictable PK/PD; favorable safety in early data No systemic exposure (IL-12, STING); no Grade ≥3 AEs in reported data Favorable profile reiterated
Regulatory/GxPIND cleared for exoASO-STAT6 Plan to finalize Phase 2 study plans with FDA in 2H 2022 Advancing toward Phase 2
PartnershipsSarepta research agreement early termination revenue; Ragon Institute collaboration noted CEPI seed funding up to $2.5M for pan Betacoronavirus Added funding partner
Capital/resourcesStronger Q4 revenue; gain on disposition with Lonza Cash declined to $41.8M; trial timing dependent on sufficient cash Resource constraints more visible

Management Commentary

  • “During the second quarter we made strong progress…delivering repeat doses of exoSTING and exoIL‑12 to the tumor with a high level of specificity…no observed systemic exposure or associated toxicity…while demonstrating tumor shrinkage in both injected and uninjected lesions.” — Douglas E. Williams, Ph.D., President & CEO .
  • “We met our objectives for the Phase 1 studies of exoSTING and exoIL‑12…opening up the possibility that these two promising targets can benefit cancer patients…we are enthusiastic about moving these programs into Phase 2 early next year.” — David Mauro, M.D., Ph.D., CMO .
  • exoASO‑STAT6: Initiated first-in-human dosing; first systemically administered exosome candidate, targeting TAMs and carrying nucleic acid cargo .

Q&A Highlights

  • The company hosted a June 30 clinical update call with slides detailing safety, PK/PD, and RP2D for exoSTING/exoIL‑12; materials emphasize no systemic exposure and consistent PD effects across doses .
  • Management highlighted trial timing dependencies on cash resources in forward‑looking statements, underscoring financing as a gating factor for Phase 2 starts .
  • No standalone Q2 2022 earnings call transcript was available in our document corpus; highlights above are drawn from press releases and the June 30 clinical update deck .

Estimates Context

  • Wall Street consensus (S&P Global) for Q2 2022 revenue and EPS was unavailable for CDAKQ via our tool; as a result, we cannot provide a beat/miss assessment relative to consensus. Values retrieved from S&P Global were unavailable for this ticker mapping.
  • Given the heavy influence of collaboration revenue recognition (Jazz deferred revenue) on quarterly results, future estimates may need to adjust for non-recurring recognition patterns when modeling forward revenue quality .

Key Takeaways for Investors

  • Collaboration revenue recognition drove a temporary YoY uplift; underlying cash decreased to $41.8M, elevating sensitivity of clinical timelines to financing and partnership inflows .
  • Clinical validation strengthened: RP2D set for exoSTING (12 µg) and exoIL‑12 (6 µg), with compelling safety (no systemic exposure) and antitumor signals in injected and abscopal lesions .
  • Near‑term catalysts: finalize FDA Phase 2 plans in 2H 2022; initiate Phase 2 trials for exoSTING (bladder) and exoIL‑12 (expanded indications) in 1H 2023; initial exoASO‑STAT6 Phase 1 data expected 1H 2023 .
  • CEPI’s up to $2.5M seed funding supports progression of the pan Betacoronavirus program toward clinical candidate selection—incremental non‑dilutive capital .
  • Estimate comparability is limited this quarter due to unavailable S&P Global consensus for CDAKQ and the outsized impact of deferred revenue; modelers should normalize for collaboration timing effects .
  • Watch for resource disclosures: management explicitly notes trial timing dependence on cash resources; any financing or partnership updates will be material to execution and timelines .

Appendix: Prior Quarter Context

  • Q1 2022: Revenue $12.704M; net loss $8.028M; EPS $(0.36); cash $56.494M; continued R&D cost moderation; set expectations for late 1H 2022 data and exoASO‑STAT6 dosing .
  • Q4 2021: Revenue $7.697M; net income $16.662M driven by $33.3M gain on disposition related to Lonza; cash $76.938M; IND clearance for exoASO‑STAT6 .