NeuroBo Pharmaceuticals, Inc. (NRBO)·Q3 2024 Earnings Summary

Executive Summary

• NeuroBo reported Q3 2024 net loss of $5.65M and EPS of $0.55 loss, driven by elevated R&D spending as programs DA-1726 (obesity) and DA-1241 (MASH) advanced; no product revenue was reported in the quarter .
• Cash was $21.7M at quarter-end, with runway extended to fund operations into Q3 2025, an improvement versus prior quarter guidance into Q2 2025, supporting upcoming clinical readouts; this is a positive liquidity development for near-term catalysts .
• DA-1726 delivered positive top-line safety/tolerability and dose-linear PK from the Phase 1 SAD Part 1, with MAD Part 2 top-line results expected in Q1 2025; DA-1241 Phase 2a top-line results are expected in December 2024, creating two near-term data catalysts .
• Strategic actions included signing a joint research agreement (with Dong-A ST and ImmunoForge) to develop a long-acting, once-monthly DA-1726 formulation, and out-licensing legacy asset NB-01, sharpening focus on core cardiometabolic programs .
• No Wall Street (S&P Global) consensus estimates were available to benchmark results; consequently, there are no beat/miss determinations against consensus for Q3 2024.*

What Went Well and What Went Wrong

What Went Well

• DA-1726 Phase 1 SAD Part 1 was positive on safety/tolerability with dose-linear PK; only 5 AEs in treatment vs 3 in placebo and no SAEs, supporting MAD initiation and potential best-in-class profile positioning .
• Cash runway extended into Q3 2025, improving operating flexibility for planned data readouts and Phase 1 Part 3 design, a notable funding stability enhancement versus Q2 guidance .
• Strategic R&D differentiation: initiation of a joint research agreement to develop once-monthly DA-1726 leveraging ELP half-life extension technology to potentially improve compliance and administration .

What Went Wrong

• Operating expenses rose YoY as R&D scaled (Q3 R&D $4.517M vs $2.292M last year), widening net loss (Q3 net loss $5.652M vs $3.818M last year), reflecting heavier clinical trial/manufacturing activity .
• Other income decreased for the nine months vs prior year due to lower gains from change in fair value of warrant liabilities (nine months 2024 other income $0.805M vs $3.063M in 2023), partly offset by higher interest income .
• Lack of revenue and absence of a published Q3 earnings call transcript limit near-term fundamental benchmarking and sell-side narrative development .

Financial Results

Quarterly progression (oldest → newest)

Year-over-year comparison (Q3 2023 vs Q3 2024)

Notes:

• The condensed statements of operations present operating expenses and net loss without a revenue line, indicating no product revenue was recognized for Q3 2024 (and comparatives) .

KPIs

vs Estimates (Q3 2024)

S&P Global consensus estimates for NRBO were unavailable for Q3 2024 at the time of analysis.*

Guidance Changes

Earnings Call Themes & Trends

Note: No Q3 2024 earnings call transcript was available; themes derived from company 8-K press releases.

Management Commentary

• “The third quarter was punctuated by the positive top-line results from the single ascending dose (SAD) Part 1 of our Phase 1 clinical trial of DA-1726… revealing it to be safe and tolerable as well as demonstrating dose-linear pharmacokinetics (PK)” – Hyung Heon Kim, President & CEO .
• “We… signed a joint research agreement… to develop a long-acting once monthly formulation of [DA-1726]… we continue to plan for an early proof-of-concept… Part 3… anticipated to begin upon the completion of Part 2.” .
• “After recently announcing the last patient last visit in our Phase 2a clinical trial for DA-1241… our next clinical milestone is the full data readout expected in December of this year.” .

Q&A Highlights

• No Q3 2024 earnings call transcript was available; therefore, there are no Q&A highlights to report from a call this quarter.

Estimates Context

• S&P Global Wall Street consensus estimates for NRBO’s Q3 2024 EPS and revenue were not available in our system at the time of analysis; consequently, no beat/miss assessment vs consensus is provided.*

Where estimates may need to adjust:

• Absent consensus, investor expectations should pivot to near-term clinical catalysts (DA-1241 December 2024 top-line and DA-1726 MAD Part 2 in Q1 2025), and liquidity runway improvement to Q3 2025, which can influence modeled cash needs and dilution scenarios .

Key Takeaways for Investors

• Near-term binary catalysts: DA-1241 Phase 2a top-line in December 2024 and DA-1726 MAD Part 2 top-line in Q1 2025 are the principal stock drivers; positive safety/PK from SAD de-risks DA-1726’s path into MAD and PoC Part 3 .
• Liquidity improved with runway into Q3 2025, extending the window to deliver clinical milestones without immediate financing; this reduces near-term dilution risk compared to prior guidance into Q2 2025 .
• Strategic differentiation: once-monthly DA-1726 formulation initiative adds a compliance/administration edge if successful, potentially strengthening the asset’s competitive profile vs GLP-1 class incumbents .
• Operating spend cadence: R&D intensity moderates from Q2 peak into Q3 while remaining elevated YoY as trials progress; expect continued R&D-driven losses until clinical milestones trigger value inflections .
• Portfolio focus: NB-01 out-license and advisory hires underscore targeted allocation of resources to core cardiometabolic programs .
• Trading setup: Lack of revenue and absence of consensus estimates shifts attention to clinical news flow; potential upside skew tied to DA-1241 December readout and DA-1726 Q1 results, with cash stability as a supportive backdrop .
• Medium-term thesis: If DA-1726 continues to demonstrate a favorable tolerability profile with effective weight loss signals and DA-1241 produces supportive efficacy data in MASH, the combination of differentiated mechanisms and monthly formulation strategy could support partnership optionality or value accretion ahead of Part 3 PoC .

Footnote: *Consensus estimates unavailable via S&P Global at time of analysis.