Tango Therapeutics 2025 Q1 Earnings Misses Targets as Net Loss Widens 5.2%

Tango Therapeutics (TNGX) reported its fiscal 2025 Q1 earnings on May 12th, 2025. Tango Therapeutics’ results missed expectations, with a notable increase in net loss. The company maintained its guidance for ongoing clinical trials, anticipating data updates later in the year. Despite the financial challenges, Tango continues to focus on advancing its precision cancer therapies, particularly its PRMT5 inhibitors. The guidance remains in-line with previous announcements, and no adjustments were made.

Revenue
The revenue for Tango Therapeutics in Q1 of 2025 dropped by 16.7% compared to the same quarter in the previous year. The company reported $5.39 million in total revenue, solely generated from collaboration efforts.

Earnings/Net Income
Tango Therapeutics experienced an increase in its net loss, reporting $-39.88 million for Q1 2025, up 5.2% from the $-37.91 million loss in 2024 Q1. EPS losses widened to $0.36 per share from $0.35, indicating continuing financial challenges.

Price Action
The stock price of Tango Therapeutics surged 11.97% on the latest trading day, despite a 7.75% drop over the last week and a 7.09% decline month-to-date.

Post Earnings Price Action Review
The strategy of purchasing TNGX shares following better-than-expected revenue results and holding them for 30 days proved ineffective. This approach yielded a return of -88.85% and a Sharpe ratio of -0.50, highlighting significant risk and negative returns. Furthermore, the maximum drawdown reached -91.43%, reflecting a highly volatile and risky strategy. The strategy failed to deliver positive outcomes, as evidenced by substantial losses and considerable volatility, underscoring the need for reassessment of investment strategies in Tango Therapeutics’ stock.

CEO Commentary
"Accumulating data continue to support TNG462 as the potential best-in-class PRMT5 inhibitor," said Barbara Weber, M.D., President and CEO of Tango Therapeutics. The company anticipates presenting comprehensive efficacy, safety, and tolerability data on TNG462 monotherapy later this year, particularly focusing on pancreatic and lung cancer. They aim to initiate a registrational study in pancreatic cancer next year and are rapidly advancing clinical combinations with daraxonrasib and zoldonrasib. To extend their cash runway amid market conditions, the company has reduced spending on the preclinical pipeline and deferred some combination studies.

Guidance
The company expects to provide a clinical data update for the TNG462 Phase 1/2 trial in the second half of 2025, while enrollment for the TNG456 Phase 1/2 trial is anticipated to begin in the second quarter of 2025. Additionally, the combination trial with TNG462 and Revolution Medicines' RAS(ON) inhibitors is also projected to start enrolling in the second quarter of 2025. A clinical update on TNG260 is expected in the latter half of 2025, with the cash runway extended to fund operations into the first quarter of 2027.

Additional News
Tango Therapeutics recently highlighted its ongoing commitment to advancing precision oncology through a series of presentations at the American Association for Cancer Research (AACR) Annual Meeting. The company showcased preclinical data from its PRMT5 programs and discussed potential combination strategies. Furthermore, Tango Therapeutics has announced plans to initiate a Phase 1/2 clinical trial for its next-generation brain-penetrant PRMT5 inhibitor, TNG456, targeting glioblastoma. The company continues to focus on leveraging the genetic principle of synthetic lethality to discover novel therapeutic targets and aims to expand its reach in genetically targeted therapies.