Executive Summary

Kronos Bio reported Q3 2024 revenue of $2.370M, net loss of $(14.108)M and EPS of $(0.23), reflecting sequential OpEx reduction and a narrower loss versus Q2 .
The company discontinued development of istisociclib (CDK9) in platinum-resistant ovarian cancer due to unfavorable benefit-risk driven by neurological adverse events, and initiated a formal process to evaluate strategic alternatives; management will implement significant expense reductions .
Pipeline progressed: KB-9558 (p300 KAT) remains on track to be IND-ready by year-end 2024 and expanded into HPV-driven tumors; KB-7898 (p300 KAT) was selected as an autoimmune development candidate with IND-enabling studies started in Q4 .
Subsequent to Q3, the Board named Deborah Knobelman as President & Interim CEO and announced an ~83% workforce reduction by year-end, intensifying the strategic review and cost actions as key stock catalysts .

What Went Well and What Went Wrong

What Went Well
- Sequential improvement in net loss: Q3 net loss $(14.108)M vs $(16.200)M in Q2; R&D and G&A both declined QoQ, evidencing cost discipline .
- Pipeline advancement: KB-9558 IND-readiness by end-2024 remains on track; expansion into HPV-driven tumors supported by preclinical data; autoimmune candidate KB-7898 entered IND-enabling studies .
- Management underscored confidence in discovery platform and IRF4/p300 targeting: “We continue to believe in the promise of our proprietary discovery technology… Data from our early-stage p300 KAT inhibitor programs demonstrate… potential of this approach” .
What Went Wrong
- Istisociclib program discontinued following neurological AEs: 5 of 7 patients experienced events (involuntary movements, confusion, hallucinations, Grade 1–3), including 3 discontinuations and 2 dose reductions, leading to an unfavorable benefit-risk .
- Strategic alternatives process reflects heightened uncertainty; no assurance of a transaction or timing; guidance narrative shifted from clinical execution to portfolio monetization .
- Collaboration revenue moderated sequentially (Q3 $2.370M vs Q2 $2.688M), while interest income also declined ($1.608M vs $1.823M), modestly dampening the non-operating offset to losses .

Financial Results

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Millions)	$2.520	$2.688	$2.370
R&D Expenses ($USD Millions)	$14.222	$13.765	$12.268
G&A Expenses ($USD Millions)	$7.506	$6.368	$5.818
Total Operating Expenses ($USD Millions)	$34.514	$20.711	$18.086
Loss from Operations ($USD Millions)	$(31.994)	$(18.023)	$(15.716)
Interest & Other, Net ($USD Millions)	$2.036	$1.823	$1.608
Net Loss ($USD Millions)	$(29.958)	$(16.200)	$(14.108)
Net Loss Per Share ($)	$(0.50)	$(0.27)	$(0.23)
Cash, Cash Equivalents & Investments ($USD Millions)	$151.984	$136.646	$124.857

Q3 year-over-year and sequential comparison:

Metric	Q3 2023	Q2 2024	Q3 2024
Revenue ($USD Millions)	$0.917	$2.688	$2.370
R&D Expenses ($USD Millions)	$25.344	$13.765	$12.268
G&A Expenses ($USD Millions)	$9.398	$6.368	$5.818
Total Operating Expenses ($USD Millions)	$34.742	$20.711	$18.086
Net Loss ($USD Millions)	$(31.374)	$(16.200)	$(14.108)
Net Loss Per Share ($)	$(0.54)	$(0.27)	$(0.23)

KPIs (program/safety and cash):

KPI	Q3 2024
Istisociclib neurological events (safety)	5 of 7 patients experienced neurological events; 3 discontinued; 2 dose reductions
Cash, cash equivalents & investments ($USD Millions)	$124.9

Note: Company does not report product gross margins; margin analysis not applicable.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Istisociclib (CDK9) in platinum-resistant HGSOC	Clinical	Data update expected 1H 2025	Discontinued; no further clinical evaluation	Lowered/Discontinued
KB-9558 (p300 KAT) – Oncology (MM)	Preclinical/IND	IND-enabling complete in Q4 2024; first patient 1H 2025	“IND-ready by end of 2024”; MM and HPV-driven tumors	Maintained/Clarified
KB-9558 – HPV-driven tumors	Preclinical	Data later in 2024	Preclinical data presented Oct 23, 2024	Raised/Progressed
KB-7898 (p300 KAT) – Autoimmune (Sjögren’s)	Preclinical	Development candidate to be announced by year-end	Development candidate selected; IND-enabling studies initiated Q4 2024	Raised/Progressed
Strategic Alternatives	Corporate	None	Engaged advisor; exploring M&A/merger/asset sale options; no assurance on timing/outcome	New
Expense Reduction	Corporate	Restructuring charges earlier in 2024	Significant expense reductions; subsequent ~83% workforce reduction by year-end	Raised
Cash Runway	Corporate	Fund operations into 2H 2026	Not reiterated in Q3; focus shifted to strategic alternatives/cost reduction	Withdrawn/Not Reiterated

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
CDK9 program (istisociclib)	Expansion cohorts at new dose schedule; data at ASCO; Q2 patient enrolled at 80mg 4-on/3-off; update in 1H 2025	Discontinued due to neurological AEs and unfavorable risk-benefit	Shifted negative (program halted)
p300 KAT – Oncology (KB-9558)	IND-enabling on track Q4 2024; MM first patient 1H 2025	IND-ready by end 2024; added HPV-driven tumors	Progressing/Expanded
p300 KAT – Autoimmune (KB-7898)	New autoimmune program; development candidate to be announced by year-end	Development candidate selected; IND-enabling studies initiated	Progressing
Strategic Direction	Focus on pipeline advancement; Genentech collaboration mentioned	Formal strategic alternatives process with advisor; cost actions	Pivot to strategic review
Cash/OpEx Discipline	Q1/Q2 restructuring/impairment; cash runway guided to 2H 2026	Sequential OpEx decline; significant expense cuts planned	Tightening costs

Note: No earnings call transcript was available in the document catalog; thematic tracking reflects company press releases/8-K disclosures.

Management Commentary

“While we believe istisociclib has provided benefit to a small number of patients… the emerging profile… suggests an unfavorable risk-benefit profile and does not warrant further clinical development.” — Norbert Bischofberger, Ph.D., CEO .
“We continue to believe in the promise of our proprietary discovery technology… Data from our early-stage p300 KAT inhibitor programs… underscore the potential of this approach for patients that have limited or no targeted therapies.” — Charles Lin, Ph.D., CSO .
Company will “implement significant expense reduction strategies” while exploring strategic alternatives to maximize stockholder value .

Q&A Highlights

No Q3 2024 earnings call transcript was published in the document set; Q&A themes are therefore unavailable from primary sources.

Estimates Context

Wall Street consensus (S&P Global) was unavailable for KRON this quarter due to missing Capital IQ mapping; as a result, comparisons to consensus EPS and revenue cannot be provided. Values would ordinarily be retrieved from S&P Global.

Key Takeaways for Investors

The discontinuation of istisociclib is a pivotal negative inflection; expect investor focus to shift toward monetization of assets and strategic alternatives rather than near-term clinical catalysts .
Cost actions are tangible: sequential OpEx and net loss declines in Q3, followed by an ~83% workforce reduction; this materially lowers burn and may extend optionality during the strategic review .
KB-9558 remains the lead value driver with near-term IND-readiness and dual oncology indications (MM and HPV-driven tumors), supported by presented preclinical data; partner interest or asset sale could emerge as part of the process .
Autoimmune expansion via KB-7898 (Sjögren’s) broadens optionality; IND-enabling initiation in Q4 marks a progression that may enhance value in a portfolio transaction .
Cash of $124.9M at quarter-end provides runway to pursue strategic paths while reducing burn; however, absence of reiterated runway guidance in Q3 highlights the primacy of the strategic review outcomes .
Near-term trading will likely hinge on announcements related to strategic alternatives, workforce reduction implementation, and clarity on IND timing/partnering; subsequent leadership changes could also influence sentiment .
Without S&P Global consensus, estimate-driven beat/miss framing is unavailable; focus should be on narrative catalysts and de-risking via cost cuts and portfolio prioritization (potential M&A/asset sales) .

Kronos Bio, Inc. (KRON)·Q3 2024 Earnings Summary