Capricor Therapeutics (CAPR) 7 Aug 24 2024 Q2 Earnings call transcript

Capricor Therapeutics, a pioneering biotech company specializing in developing innovative therapies for various diseases, recently held its second quarter 2024 earnings call, highlighting significant strides in its lead asset, Deramiocel, for the treatment of Duchenne muscular dystrophy (DMD). The call, led by CEO Linda Marbán and CFO Anthony Bergmann, was filled with optimism, strategic insights, and a strong focus on the company's future prospects.

Progress and Expectations for Deramiocel

Capricor's primary focus remains on advancing Deramiocel, a potentially transformative therapy for DMD, towards regulatory approval. The company's recent clinical trial results and long-term open-label extension study have been met with great enthusiasm, showcasing Deramiocel's ability to significantly slow disease progression from both a skeletal and cardiac standpoint. This has raised expectations for its potential as a backbone therapy for all boys and young men afflicted with DMD.

The US distribution agreement with Nippon Shinyaku, worth approximately $700 million in potential developmental and sales milestones, further strengthens Capricor's financial position and strategic plans for commercialization. The company is also actively exploring opportunities to expand Deramiocel into Becker muscular dystrophy, a related condition, with the FDA.

Exosome Platform and Future Opportunities

In addition to Deramiocel, Capricor's exosome platform, a next-generation drug delivery platform, is gaining significant attention. The company's recent advancements in targeted delivery to skeletal muscle and successful loading of antisense oligonucleotides into exosomes showcase its potential for broad applications. This platform, combined with Capricor's earlier work on arginase-1 deficiency as an enzyme replacement therapy, reinforces the potential of its exosome technology.

Financial Highlights and Future Prospects

Capricor's financials for the second quarter of 2024 reveal a revenue of approximately $4 million, primarily from the ratable recognition of the $40 million received from the US exclusive Commercialization and Distribution Agreement with Nippon Shinyaku. Despite a net loss of approximately $11 million for the quarter, the company's cash runway is expected to support operations into the first quarter of 2025, excluding any potential milestone payments.

The company is actively pursuing multiple business development opportunities, aiming to secure additional capital to strengthen its balance sheet and extend its cash runway. Capricor is also in advanced discussions for distributing Deramiocel in Europe, with the goal of finalizing these deals before the end of the year.

Conclusion

Capricor Therapeutics' second quarter 2024 earnings call underscored the company's commitment to advancing Deramiocel and its exosome platform, while navigating the complexities of regulatory approval and strategic partnerships. With a strong focus on DMD and potential expansions into other indications, Capricor is poised for a transformative future in the biotech landscape.