Sign in

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

GB

Gritstone bio, Inc. (GRTS)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 2024 delivered mixed results: EPS of $0.16 loss beat third‑party consensus, while revenue of $0.92M missed materially; operating expenses fell sharply year over year, reflecting cost actions .
  • Clinical narrative strengthened: preliminary randomized Phase 2 data for GRANITE in front‑line metastatic MSS‑CRC show an encouraging PFS trend, with mature PFS data expected in Q3 2024—a key upcoming catalyst .
  • Cash increased sequentially to $61.7M (cash, marketable securities, and restricted cash) as of June 30, 2024, supported by an April financing of $32.5M; R&D spend declined $10.2M YoY in Q2 .
  • Infectious disease portfolio progressing, with continued efforts to initiate CORAL Phase 2b per BARDA contract and 12‑month durability data from samRNA Phase 1 presented at ESCMID, reinforcing platform potential .

What Went Well and What Went Wrong

What Went Well

  • GRANITE Phase 2 signal in MSS‑CRC: “The emerging progression‑free survival (PFS) benefit we reported in April is highly encouraging… we look forward to sharing the updated dataset next month” — Andrew Allen, MD, PhD (CEO) . Preliminary hazard ratios favored GRANITE (overall HR 0.82; high‑risk subgroup HR 0.52), aligning with ctDNA trends .
  • Technology validation: EDGE neoantigen prediction presented at AACR; HLA Class I presentation predicted with >80% accuracy, underpinning oncology programs .
  • Cost discipline: Q2 R&D expenses fell to $20.8M vs $31.0M YoY; total operating expenses down to $28.5M vs $37.7M YoY, aiding loss reduction and improving operating leverage .

What Went Wrong

  • Revenue headwind: Q2 total revenue of $0.92M, primarily grants, declined from $1.96M YoY, and missed third‑party consensus materially (by ~66.7%) .
  • Higher G&A: Q2 G&A rose to $7.7M from $6.7M YoY, driven by personnel and stock‑based comp, partially offsetting R&D savings .
  • External execution risk persists: Continued delay and preparation for the CORAL Phase 2b BARDA study, with timing contingent on GMP‑grade materials and operational readiness .

Financial Results

Income Statement Comparison

MetricQ2 2023Q1 2024Q2 2024
Total Revenues ($USD Millions)$1.96 $1.74 $0.92
Net Loss ($USD Millions)$(35.26) $(40.39) $(23.40)
Net Loss per Share (EPS) ($USD)$(0.31) $(0.34) $(0.16)
R&D Expense ($USD Millions)$30.97 $33.04 $20.81
G&A Expense ($USD Millions)$6.72 $8.50 $7.70
Total Operating Expenses ($USD Millions)$37.68 $41.54 $28.51
Other Income (Expense) ($USD Millions)$(0.02) $—$4.81
Weighted‑Average Shares (Millions)114.93 118.39 143.30

Notes:

  • Other income of $4.81M in Q2 2024 contributed to narrower net loss; third‑party summary attributes this to warrant revaluation following April financing .

Revenue Composition

MetricQ2 2023Q1 2024Q2 2024
Collaboration & License Revenues ($USD Millions)$0.40 $0.05 $0.06
Grant Revenues ($USD Millions)$1.56 $1.69 $0.86
Total Revenues ($USD Millions)$1.96 $1.74 $0.92

Balance Sheet KPIs

MetricDec 31, 2023Mar 31, 2024Jun 30, 2024
Cash & Cash Equivalents ($USD Millions)$62.99 $42.40 $50.90
Marketable Securities ($USD Millions)$16.29 $3.91 $4.81
Restricted Cash (Current + Long‑term) ($USD Millions)$7.59 $6.54 $5.97
Cash + Marketables + Restricted ($USD Millions)$86.87 $52.80 $61.70

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
GRANITE Phase 2 PFS data timingQ3 2024“Mature PFS data expected in Q3 2024” (Q1 PR) “Mature PFS data expected in Q3 2024” (Q2 PR) Maintained
CORAL Phase 2b (BARDA) initiation2024“Preparing to launch; will do so as soon as able” (Q1 PR) “Efforts to initiate continue; updates as able” (Q2 PR) Maintained (timeline contingent)
Financial guidance (revenue/margins/OpEx/tax)2024None providedNone providedN/A

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2023 and Q1 2024)Current Period (Q2 2024)Trend
Oncology efficacy signals (MSS‑CRC)Preliminary Phase 2 efficacy data expected; enrollment complete Preliminary PFS hazard ratios (overall HR 0.82; high‑risk subgroup HR 0.52) and ctDNA trends favor GRANITE; mature PFS data due Q3 Strengthening clinical narrative
EDGE AI/neoantigen predictionEDGE enhancements using large language models; platform leadership EDGE predicts HLA Class I with >80% accuracy; AACR update Continued validation
CORAL (samRNA) BARDA studyIncorporating GMP materials; Fall 2024 preparation; workforce reduction to preserve capital Efforts continue; 12‑month durability data presented at ESCMID; updates as able Progress with timing risk
Capital & liquidityCash $86.9M YE 2023; workforce reduction (~40%) in Feb 2024 Cash plus marketables and restricted $61.7M; $32.5M financing in April Liquidity supported by financing; spend reduced
CollaborationsNCI SLATE‑KRAS + TCR‑T collab ongoing NCI oncologic combo study ongoing; HIV collab under Gilead continues Stable partnerships

Management Commentary

  • “This is an exciting time for Gritstone… If we continue to see evidence of a clinical benefit with GRANITE, as measured by PFS, we believe new hope can be brought to patients who have not been helped by immune checkpoint blockade.” — Andrew Allen, MD, PhD (CEO) .
  • “Our recent AACR presentation highlights the unique power of EDGE… Our recent presentation at ESCMID showcases the ability of our self‑amplifying mRNA vector (samRNA) to induce long‑lasting immune responses.” — Andrew Allen .

Q&A Highlights

  • A Q2 2024 earnings call transcript was not available via our document tools; no Q&A highlights could be retrieved. We searched for earnings‑call transcripts in the Q2 window and found none; a Special Call transcript existed (Aug 2, 2024) but could not be opened due to a database inconsistency [29] (list) and read error.

Estimates Context

  • S&P Global consensus estimates were unavailable due to a CIQ mapping issue (GetEstimates error). We anchored to third‑party reported consensus where possible and explicitly note S&P unavailability.
  • Q2 2024 comparison (actual vs third‑party consensus):
MetricActualConsensusSurprise
EPS ($USD)$(0.16) $(0.26) (Zacks) +$0.10 (beat)
Revenue ($USD Millions)$0.92 ~$2.76 (derived from 66.7% miss; Zacks) $(1.84) (miss)

Note: S&P Global consensus unavailable; third‑party references used for context.

Key Takeaways for Investors

  • The Q3 readout of mature PFS from the GRANITE Phase 2 randomized study is the central near‑term catalyst; preliminary HRs and ctDNA trends suggest potential clinical benefit in MSS‑CRC .
  • Q2 operating discipline is evident—R&D down $10.2M YoY and total OpEx down ~$9.2M YoY, driving a narrower net loss despite lower revenue .
  • Revenue remains grant‑driven and volatile; absent partner revenue, expect continued dependence on grant timing and milestones—Q2 grant revenue was $0.86M, with CEPI the source .
  • Liquidity improved sequentially to $61.7M including marketables and restricted cash, bolstered by the April $32.5M raise; continued spend control is critical ahead of clinical and BARDA milestones .
  • EPS outperformed third‑party consensus, but revenue under‑delivered significantly—sell‑side models may need to adjust revenue cadence to reflect grant timing and program phasing .
  • Platform validation across EDGE (AACR) and samRNA durability (ESCMID) strengthens medium‑term thesis on differentiated vaccine tech across oncology/infectious disease .
  • Trading setup: anticipate heightened volatility around Q3 PFS disclosure; positive confirmation could re‑rate oncology optionality, while ambiguous data may refocus attention on liquidity and BARDA execution risk .

Sources

  • Q2 2024 8‑K 2.02 press release and financials .
  • Q1 2024 8‑K press release and financials .
  • Q4 2023 8‑K press release and financials .
  • Third‑party consensus and summary context: Nasdaq/Zacks ; Quartr summary .