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Eliem Therapeutics, Inc. (ELYM)·Q2 2024 Earnings Summary

Executive Summary

  • Eliem closed the Tenet Medicines acquisition and a concurrent $120M private placement, pivoting to immunology with lead asset budoprutug; cash, cash equivalents and marketable securities rose to $223.1M, extending runway into 2027 .
  • Q2 GAAP net loss widened to $(54.9)M and EPS to $(1.81), driven by $51.7M acquired in-process R&D from the Tenet transaction; R&D fell YoY on program pauses while G&A rose on consulting/legal spend .
  • Management plans an Investor Day later this year to detail budoprutug strategy, expects to finalize a high concentration formulation by end-2024, and targets Phase 2 trials in SLE/LN and ITP subject to regulatory clearance; comprehensive MN Phase 1b data expected in Q4 2024 .
  • No Wall Street consensus estimates were available via S&P Global for ELYM (mapping missing), so beats/misses vs expectations cannot be assessed; note catalysts include Investor Day, IND/CTA filings, and index additions (Russell 2000/3000) .

What Went Well and What Went Wrong

What Went Well

  • Strategic pivot executed: “Following the close of the Tenet Medicines acquisition and the concurrent financing, we believe Eliem is well-positioned as we transition to becoming a leading development stage immunology company.” — Aoife Brennan, CEO .
  • Strengthened balance sheet and runway: cash, cash equivalents and marketable securities reached $223.1M; company expects funding into 2027, enabling key budoprutug milestones .
  • Pipeline visibility improving: plans for Investor Day, high-concentration formulation by end-2024, and Phase 2 studies in SLE/LN and ITP; MN Phase 1b signal noted (3 of 5 complete remissions on four doses) .

What Went Wrong

  • Large GAAP loss on acquisition accounting: acquired IPR&D expense of $51.7M drove net loss to $(54.9)M and EPS $(1.81) in Q2 .
  • G&A up YoY: Q2 G&A rose to $3.7M (+21.2% YoY) on consulting and legal costs, partially offset by lower restructuring .
  • Estimates context unavailable: S&P Global mapping for ELYM was missing, preventing a standard beat/miss assessment versus consensus.

Financial Results

MetricQ2 2023Q1 2024Q2 2024
Revenues ($USD Millions)$0.0 $0.0 $0.0
R&D Expense ($USD Millions)$3.688 $1.091 $1.046
G&A Expense ($USD Millions)$3.026 $1.914 $3.667
Acquired IPR&D ($USD Millions)$0.000 $0.000 $51.659
Other Income, net ($USD Millions)$1.494 $1.341 $1.485
Net Loss ($USD Millions)$(5.220) $(1.697) $(54.889)
Diluted EPS ($USD)$(0.19) $(0.06) $(1.81)

Notes: Margin metrics are not meaningful for a pre‑revenue biotech. Company operates as a single segment .

Cash and liquidity

MetricDec 31 2023Mar 31 2024Jun 30 2024
Cash, Cash Equivalents and Marketable Securities ($USD Millions)$106.798 $105.031 $223.140

Segment breakdown

SegmentDescription
Single operating segmentCODM evaluates financials on a consolidated basis; the company operates as one segment

KPIs

KPIQ2 2023Q1 2024Q2 2024
Weighted-average shares (Basic & Diluted)26,840,555 27,638,528 30,349,562
Cash runway (management view)N/A“At least the next twelve months” as of Q1 filing “Into 2027” post-acquisition/financing

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runwayCorporate“Sufficient for at least next 12 months” (as of Q1 2024 filing date) “Sufficient to fund planned operations into 2027” Raised
Budoprutug formulation2024Not previously specifiedFinalize high concentration formulation by end-2024 New
MN data disclosureQ4 2024Not previously specifiedDisclose comprehensive MN Phase 1b data in Q4 2024 New
Development plans2025+ (subject to clearance)Pre-pivot strategic alternatives Plan Phase 2 trials in SLE/LN and ITP, subject to IND/CTA/regulatory clearance New
Investor communications2024Not previously specifiedHost Investor Day to outline budoprutug and corporate strategy later this year New

No revenue, margin, tax rate, or dividend guidance was provided.

Earnings Call Themes & Trends

Note: No Q2 2024 earnings call transcript was available in the document set. Themes derived from the 8‑K and 10‑Q.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q2 2024)Trend
Strategic focusExploration of strategic alternatives; neuro programs paused (Kv7, ETX-155) Pivot to immunology via Tenet acquisition; budoprutug as lead asset Strengthening focus
Financing & runwayAdequate for ≥12 months; need for substantial future funding $120M private placement closed; runway into 2027 Improved
R&D executionR&D down sharply with program pauses R&D low; near-term work on formulation and Phase 2 planning Transitioning
Regulatory/legalStandard biotech regulatory risks highlighted IND/CTA submissions planned for SLE/LN and ITP Building toward filings
Corporate governance/controlsMaterial weaknesses in ICFR noted Material weaknesses continue; remediation in progress Ongoing remediation
Index/macroNo index inclusion previouslyAdded to Russell 2000/3000 Positive visibility

Management Commentary

  • “Our lead product candidate, budoprutug, is an anti-CD19-targeted monoclonal antibody that we plan to develop for a range of immune-mediated diseases… We look forward to sharing a comprehensive update… at an upcoming Investor Day” — Aoife Brennan, CEO .
  • “As of June 30, 2024, Eliem had total cash and cash equivalents of $223.1 million which Eliem expects will be sufficient to fund its planned operations into 2027…” .
  • MN signal: “In a Phase 1b clinical trial of budoprutug in MN, 3 out of 5 (or 60%)… achieved a complete remission of proteinuria…” .

Q&A Highlights

No Q2 2024 earnings call transcript was available in the document repository; Q&A details and any clarifications cannot be assessed.

Estimates Context

Wall Street consensus via S&P Global was unavailable due to a missing mapping for ELYM in the SPGI CIQ company map; therefore, comparisons vs consensus for Q2 2024 EPS and revenue cannot be provided.

Key Takeaways for Investors

  • The significant GAAP loss was a non-recurring accounting item from Tenet-related IPR&D ($51.7M); underlying R&D burn remains modest post program pause, while G&A reflects transaction-related professional fees .
  • The balance sheet now supports multi-year execution; runway into 2027 reduces near-term financing risk and enables value-creating clinical milestones in SLE/LN and ITP .
  • Budoprutug’s MN signal and anti-CD19 biology position ELYM in competitive autoimmune areas; near-term catalysts include the Investor Day, IND/CTA submissions, formulation completion, and MN data in Q4 2024 .
  • Index inclusion (Russell 2000/3000) may improve liquidity and passive ownership flow .
  • Watch remediation of material weaknesses in internal control; while no misstatements were reported, sustained progress is important for execution quality .
  • Absence of consensus estimates complicates beat/miss framing; focus on operational milestones and cash discipline until clinical readouts re-rate the equity.
  • Medium-term thesis: execution on Phase 2 design/starts and validating data will be crucial; partnership optionality exists given sizable downstream milestone/royalty obligations on licenses .

Sources: SEC Form 8‑K with press release and exhibits (Aug 14, 2024) ; Q2 2024 Form 10‑Q (Aug 14, 2024) ; Q1 2024 Form 10‑Q (May 15, 2024) .