Executive Summary

Q2 2024 narrowed losses materially as R&D spend collapsed following suspension of mavodelpar; net loss was $5.4M ($0.16 per share) vs $19.5M ($0.65) YoY and $8.4M ($0.25) in Q1 .
Cash, cash equivalents, and short‑term investments were $76.7M at 6/30 (vs $82.8M at 3/31 and $103.0M at 12/31), reflecting ongoing cash preservation ahead of the OnKure merger and concurrent $65M PIPE; combined company cash expected to be ~$120M at close in 2H24 .
Operating profile is now essentially G&A with legal/advisory fees for the merger (+$2.4M), with R&D at $0.6M (from $14.4M YoY) given program shutdowns and workforce reductions .
Near‑term stock reaction catalysts center on special meeting/closing of the OnKure transaction, re‑branding, and pipeline reset toward precision oncology (OKI‑219) with extended runway to late 2026 per merger materials .

What Went Well and What Went Wrong

What Went Well

Significant P&L improvement: net loss improved to $5.4M and EPS to $(0.16), driven by aggressive cost actions and R&D wind‑down .
Strategic pivot progressed: definitive all‑stock merger agreement signed (May 10), concurrent $65M PIPE arranged, and expected combined cash of ~$120M at close in 2H24 .
Operating discipline: G&A declines YoY with offsetting legal/advisory fees for the merger; R&D reduced to $0.6M reflecting program suspension and workforce reductions .

What Went Wrong

Commercial inactivity: no revenue‑generating operations; results dominated by operating costs and merger overhead .
Elevated transaction costs: legal/advisory fees increased by $2.4M due to the proposed merger, partially offsetting G&A savings .
Cash balance stepped down vs Q1 and year‑end, reflecting continued cash burn ahead of deal close ($76.7M at 6/30 vs $82.8M at 3/31 and $103.0M at 12/31) .

Financial Results

P&L and Cash Metrics (oldest → newest)

Metric	Q2 2023	Q4 2023	Q1 2024	Q2 2024
Net Loss ($USD Millions)	$19.53	$23.60	$8.43	$5.36
Diluted EPS ($USD)	$(0.65)	$(0.70)	$(0.25)	$(0.16)
Research & Development ($USD Millions)	$14.40	$17.60	$4.94	$0.59
General & Administrative ($USD Millions)	$6.64	$7.40	$4.62	$5.77
Other Income ($USD Millions)	$1.51	—	$1.14	$1.00
Total Operating Expenses ($USD Millions)	$21.04	—	$9.56	$6.36
Cash, Cash Equivalents & ST Investments ($USD Millions, period-end)	—	$103.0	$82.8	$76.7

Notes:

“—” denotes not disclosed at that granularity in the referenced document.
Q2 2024 cash breakdown: cash & equivalents $35.97M and short‑term investments $40.70M .

Segment breakdown

No revenue segments; operating structure comprises R&D and G&A only .

KPIs

KPI	Q1 2024	Q2 2024
Net cash used in operating activities ($USD Millions)	$21.01	$27.82 (six months YTD)
Weighted‑average shares (basic/diluted)	33.42M	33.42M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Transaction close timing	2024 (2H)	N/A	Close expected in 2H24 (subject to approvals/conditions)	New
Combined company cash at close	Close date	N/A	Approximately $120M including $65M PIPE	New
Corporate focus	Post‑close	N/A	Precision oncology platform (e.g., OKI‑219 Phase 1)	New

Earnings Call Themes & Trends

Note: No Q2 earnings call transcript located; themes drawn from company filings/press materials.

Topic	Previous Mentions (Q4 2023 and Q1 2024)	Current Period (Q2 2024)	Trend
Strategic alternatives / merger	Q4: Initiated formal process to evaluate strategic alternatives; workforce reduction ~90% . Q1: Continued cost savings; exploring alternatives .	Definitive merger with OnKure announced; $65M PIPE; close expected 2H24 .	Escalated to execution
R&D execution	Q4: STRIDE failed efficacy endpoints; R&D elevated in Q4 and FY23 . Q1: R&D fell to $4.9M with program suspension .	R&D dropped to $0.6M; limited ongoing development in legacy programs .	Down materially
Operating expenses (G&A)	Q4: G&A $7.4M; commercial and personnel previously elevated . Q1: G&A $4.6M post workforce reductions .	G&A $5.8M, with +$2.4M legal/advisory fees tied to merger .	Rebound on deal costs
Cash runway	Q4: $103.0M at 12/31 . Q1: $82.8M at 3/31 .	$76.7M at 6/30; combined company expected ~$120M at close .	Near‑term dip; post‑close uplift
Therapeutic focus	Q4/Q1: Rare mitochondrial diseases, program suspended .	Pivot to precision oncology (PI3Kα programs; OKI‑219) post‑merger .	Strategic re‑orientation

Management Commentary

Second quarter press release emphasized transaction progress: “The Merger and a concurrent $65 million [PIPE]…are expected to close in the second half of 2024…Including proceeds from the concurrent PIPE financing, the combined company is expected to have approximately $120 million of cash, cash equivalents and short-term investments at the closing of the Merger” .
Cost actions cited as drivers of reduced expenses: R&D decreased primarily due to suspension of mavodelpar and workforce reductions; G&A decline offset by $2.4M in legal/advisory fees related to the proposed merger .
Strategic direction post‑close: Combined company to focus on advancing OnKure’s precision oncology portfolio (e.g., OKI‑219) .

Note: No direct executive quotes were disclosed in the Q2 2024 earnings press release; strategic quotes are contained in the May 13 merger announcement materials .

Q&A Highlights

Not applicable; no Q2 2024 earnings call transcript was available via document search.

Estimates Context

Wall Street consensus EPS and revenue estimates via S&P Global Capital IQ were unavailable for RPHM due to missing CIQ mapping in our data feed at the time of retrieval. As a result, comparisons to consensus cannot be presented for Q2 2024. Values would be retrieved from S&P Global if available.

Key Takeaways for Investors

The quarter validated the cost‑reduction trajectory: R&D reduced to de minimis levels ($0.6M) with net loss narrowed to $5.4M; expect continuing low OpEx pre‑close with temporary G&A elevation from deal costs .
The merger is the core catalyst: Special meeting approvals and 2H24 closing would reset the story to precision oncology with a healthier pro forma cash balance (~$120M) and extended runway .
Near‑term trading may hinge on transaction milestones (S‑4 effectiveness, shareholder votes, closing timing) and PIPE finalization; headline risk around merger litigation/approvals persists, as noted in forward‑looking statements .
Post‑close diligence should focus on OnKure’s clinical data flow (OKI‑219 Phase 1), regulatory pathways, and budgeted R&D ramp versus the announced runway to 4Q26 .
Monitor G&A normalization after deal close (legal/advisory fees abate) and governance/management transitions outlined in SEC filings .
With no revenue base, valuation will pivot to oncology pipeline risk/return and capital allocation discipline; cash burn profiles should be reassessed post‑integration using combined company disclosures .
Absence of consensus estimates reduces near‑term “beat/miss” optics; investors should anchor on cash runway, clinical milestones, and transaction execution until regular consensus coverage resumes.

Reneo Pharmaceuticals, Inc. (RPHM)·Q2 2024 Earnings Summary