Sign in

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

CP

Corvus Pharmaceuticals, Inc. (CRVS)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 was defined by positive clinical readouts in atopic dermatitis (AD) and a non-cash accounting tailwind: net income of $15.2M driven by a $25.1M gain from the change in fair value of warrant liability; diluted EPS was -$0.13 as reported in the statement of operations .
  • Cohort 3 (200 mg BID) in the randomized, placebo-controlled AD Phase 1 trial showed earlier and deeper responses versus cohorts 1–2, with EASI-75 achieved in 63% of treated patients (vs. 0% placebo) and a 71.1% mean EASI reduction at day 28; safety remained favorable with no DLTs or clinically significant lab abnormalities .
  • Liquidity is strong following early warrant exercises: cash, cash equivalents and marketable securities were $44.2M at March 31; warrant exercises in May added ~$31.3M, extending runway into Q4 2026 per management .
  • Guidance/catalysts: AD Phase 1 extension cohort at 200 mg BID for 8 weeks is underway; data targeted for Q4 2025; Phase 2 AD initiation planned before year-end; Phase 3 PTCL enrollment ongoing; Phase 2 ALPS enrolling under NIAID collaboration .
  • Versus estimates, Q1 diluted EPS of -$0.1378 missed consensus of -$0.1183; revenue remains pre-commercial with consensus at $0.0. Expect sell-side to recalibrate for the warrant liability volatility while focusing on AD efficacy momentum and near-term clinical catalysts. Values retrieved from S&P Global*

What Went Well and What Went Wrong

What Went Well

  • Cohort 3 AD efficacy: 63% achieved EASI-75 at day 28; mean EASI reduction 71.1% vs. 42.1% placebo; kinetic separation from placebo started by day 8. “Cohort 3 data is especially interesting, demonstrating earlier and deeper responses compared to Cohorts 1 and 2” (CEO) .
  • Safety/tolerability: No DLTs, no clinically significant lab abnormalities; only one treatment-related AE (grade 1 nausea) across cohorts; no dose interruptions .
  • Balance sheet strengthening: ~$31.3M cash proceeds from early exercise of 8,945,175 warrants (CEO also exercised 559,073), extending cash runway into Q4 2026 .

What Went Wrong

  • EPS vs. consensus: Q1 diluted EPS -$0.1378 missed the Wall Street consensus of -$0.1183, reflecting non-cash items and equity-method loss; expect volatility from warrant liability remeasurement to continue in future quarters. Values retrieved from S&P Global* .
  • Operating expense growth: R&D rose to $7.5M (vs. $4.1M prior year), reflecting higher trial and manufacturing costs and personnel; total OpEx increased to $9.9M (vs. $6.3M prior year) .
  • Pre-revenue profile persists: Company remains in clinical stage; statement of operations shows losses from operations without recognized revenue lines, keeping fundamental P&L leverage tied to trial progress and financing cadence .

Financial Results

Quarterly P&L and Liquidity (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Net Income (Loss) ($USD Millions)$(40.217) $(12.113) $15.193
Diluted EPS ($USD)$(0.60) $(0.18) $(0.13)
Total Operating Expenses ($USD Millions)$7.255 $8.105 $9.922
R&D Expense ($USD Millions)$5.222 $5.974 $7.453
Change in Fair Value of Warrant Liability ($USD Millions)$(32.846) $(2.347) $25.129
Cash, Cash Equivalents & Marketable Securities ($USD Millions)$41.7 $52.0 $44.2

EPS vs. Consensus – Q1 2025

MetricQ1 2025
Diluted EPS – Actual ($USD)-0.1378*
Diluted EPS – Consensus Mean ($USD)-0.11833*
Revenue – Consensus Mean ($USD Millions)0.00*
Values retrieved from S&P Global*

AD Phase 1 Efficacy KPIs (28-day treatment)

KPICohorts 1+2 (Active)Cohorts 1+2 (Placebo)Cohort 3 (Active 200 mg BID)Cohort 3 (Placebo)
Mean EASI Reduction (%)54.6% 30.6% 71.1% 42.1%
EASI-75 (% of patients)29% 0% 63% 0%
EASI-90 (% of patients)4% 0% 13% 0%
IGA 0/1 (% of patients)21% 0% 25% 0%
Safety SummaryNo DLTs; no clinically significant lab abnormalities —No DLTs; no clinically significant lab abnormalities —

Note: Placebo groups across cohorts had 0% EASI-75 and IGA 0/1 at day 28 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayFunding horizonInto Q1 2026 Into Q4 2026 Raised runway (extended)
AD Phase 1 ReadoutsCohorts 1–3Data in May 2025 Presented May 8, 2025; protocol amended to 8-week extension cohort Executed readout; added extension cohort
AD Phase 1 Extension CohortCohort 4N/A24 pts, 200 mg BID, 8-week treatment; data in Q4 2025 New milestone/timeline
AD Phase 2 Initiation2025Plan to initiate in 2025 On track to initiate before year-end 2025 Maintained/confirmed timing
PTCL Phase 3OngoingEnrolling at multiple sites Enrolling; randomized vs belinostat/pralatrexate; PFS primary Maintained
ALPS Phase 2 (NIAID)OngoingInitiated March 2025; up to 30 pts First patient enrolled; enrollment ongoing Progressing

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
AD efficacy and mechanismInterim AD trial progress; cohorts enrolling; focus on EASI/IGA endpoints Cohort 3 shows earlier/deeper responses; combined cohorts superior to placebo (p=0.03); biomarker shifts (Tregs, cytokines) Strengthening efficacy narrative
Dosing strategy (QD vs BID)Anticipated optimal dosing based on lymphoma experience 200 mg BID viewed as optimal; QD feasible; Phase 2 to test dose/duration variants Clearer dose optimization
Safety/tolerabilityNo safety signals in AD cohorts 1–2 No DLTs or clinically significant labs across cohorts; single grade 1 nausea Consistently favorable
Funding/runwayInto 2026 expected Warrant exercises add ~$31.3M; runway extended into Q4 2026 Improved liquidity
PTCL Phase 3Enrolling; randomized vs SOC chemo agents Enrolling; late-2026 interim target noted by CEO Steady progress
ALPS Phase 2Initiated; up to 30 patients First patient enrolled; initial data possible late 2025/early 2026 Advancing enrollment
Partnership postureNot highlighted“We’re going to blast ahead on our own,” while maintaining discussions; not dependent on partners Independent execution emphasis

Management Commentary

  • “Cohort 3 data is especially interesting, demonstrating earlier and deeper responses compared to Cohorts 1 and 2... supported by biomarker data and the ITK inhibition mechanism of action” (CEO) .
  • “We believe this amendment [8-week extension cohort at 200 mg BID] gives us the opportunity to evaluate the potential for greater efficacy with longer treatment duration… we anticipate data in the fourth quarter” (CEO) .
  • “With the extra cash we got yesterday, we can move through our extension… get into Phase II and move forward. We’re not dependent on any partners” (CEO) .
  • “Based on our current plans, we expect our current cash, including warrant proceeds, to fund operations into the fourth quarter of 2026” (CFO) .

Q&A Highlights

  • Positioning vs. Dupixent and JAK inhibitors: Management sees potential for early-line systemic use given oral convenience and safety; cautioned on small sample size in Cohort 3 .
  • Duration-of-therapy effects: EASI curves continued improving through day 28; extension cohort designed to test deeper responses with 8 weeks of dosing .
  • Dose-effect and occupancy: Cohort 3 doubled total daily dose vs. cohorts 1–2; management expects full ITK occupancy at 200 mg BID; covalent binding dynamics discussed (≈300 ng/mL) .
  • Placebo dynamics: Placebo effects within expected ranges; notably 0% placebo achieving EASI-75/IGA 0/1 at 4 weeks due to shorter exposure than typical 12–16 week trials .
  • Runway scope: Cash plans include AD extension cohort, Phase 2 AD start, Phase 3 PTCL continuation, and initiation of a small solid tumor Phase 1 later in 2025 .

Estimates Context

  • EPS: Q1 2025 diluted EPS was -$0.1378 vs. consensus -$0.11833, a miss of ~$0.02 per share. Boldly, non-cash warrant liability remeasurement drove net income but diluted EPS remained negative, highlighting estimate complexity. Values retrieved from S&P Global*
  • Revenue: Pre-commercial; consensus revenue $0.0. Values retrieved from S&P Global*
  • Forward estimates: Street EPS consensus for the next two quarters is modestly negative (e.g., Q3/Q4 2025 around -$0.13), with zero revenue expected while the company remains in clinical development. Values retrieved from S&P Global*

Key Takeaways for Investors

  • AD efficacy momentum is building: earlier/deeper Cohort 3 responses with strong safety profile raise the probability of success for longer dosing and Phase 2 design; watch Q4 2025 extension cohort data as a major catalyst .
  • Liquidity de-risks near-term execution: ~$31.3M warrant proceeds and cash of $44.2M at Q1 extend runway into Q4 2026; supports AD Phase 2, PTCL Phase 3, and ALPS Phase 2 without near-term partnering needs .
  • Expect EPS volatility from warrants: Warrant liability remeasurement swings can obscure operating trends; focus on OpEx pacing and clinical milestones rather than quarterly GAAP EPS .
  • Dose strategy crystallizing: 200 mg BID appears optimal; once-daily dosing may be feasible; Phase 2 will likely refine dose/duration for maximal efficacy and convenience .
  • Broader pipeline optionality: PTCL Phase 3 and ALPS Phase 2 advance in parallel; solid tumor trial planned later in 2025, adding oncology optionality alongside immunology .
  • Near-term trading setup: Q4 2025 AD extension cohort readout and Phase 2 AD initiation are likely stock-moving events; interim PTCL timing late 2026 keeps an oncology overhang but not near-term .
  • Medium-term thesis: If AD efficacy scales with longer dosing and maintains safety, the asset could position competitively vs. biologics and JAKs, with oral convenience and a differentiated mechanism of action (ITK inhibition) .
Notes: 
- All document-based facts and figures are cited inline. 
- EPS and revenue consensus/actual values marked with * are retrieved from S&P Global.