Capricor 2024 Q4 Earnings Misses Targets with Net Loss Widening by 833.8%

Capricor Therapeutics reported its fiscal 2024 Q4 earnings on May 14th, 2025. The company's net income results fell below expectations as losses widened significantly compared to the previous year. There was no adjustment to guidance, with the company maintaining its current financial outlook. Despite ongoing challenges, Capricor remains focused on advancing its therapeutic programs, with upcoming milestones potentially impacting future performance.

Revenue
The total revenue of Capricor decreased by 7.9% to $11.13 million in 2024 Q4, down from $12.09 million in 2023 Q4.

Earnings/Net Income
Capricor's losses deepened to $0.16 per share in 2024 Q4 from a loss of $0.02 per share in 2023 Q4 (537.1% wider loss). Meanwhile, the company's net loss widened to $-7.12 million in 2024 Q4, representing a 833.8% increase from the $-762089 loss recorded in 2023 Q4. The company has sustained losses for 12 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. The EPS indicates poor performance.

Price Action
The stock price of Capricor has edged down 0.90% during the latest trading day, has jumped 11.32% during the most recent full trading week, and has plummeted 17.44% month-to-date.

Post-Earnings Price Action Review
Investors who purchased Capricor shares after revenue matched quarter-over-quarter on the earnings release date and held for 30 days experienced a 46.46% return. This performance notably lagged behind the benchmark's impressive 87.14% return. The strategy's low Sharpe ratio of 0.09 underscored its poor risk-adjusted returns. Additionally, the approach faced a steep maximum drawdown of -69.75%, reflecting its high risk and substantial losses. This indicates that the strategy may not be suitable for risk-averse investors, given its volatility and significant potential for loss.

CEO Commentary
“We continue to make strong progress in 2025 as we advance toward our goal of delivering the first approved therapy for Duchenne cardiomyopathy—a condition with no approved treatments,” said Linda Marbán, Ph.D., Chief Executive Officer of Capricor. The company maintains active dialogue with the FDA regarding its Biologics License Application (BLA), with an action date set for August 31, 2025. Capricor is preparing for key milestones, including an FDA advisory committee meeting and potential commercial launch, while also advancing its StealthX™ vaccine program, supported by a strong cash position of approximately $145 million.

Guidance
Capricor anticipates the initiation of a Phase 1 clinical trial for its StealthX™ exosome vaccine in the third quarter of 2025, contingent upon regulatory approval from NIAID. The company is on track to meet its PDUFA target action date for the BLA of deramiocel on August 31, 2025. Financially, Capricor expects its cash position of approximately $145 million to support planned operations into 2027, allowing for execution on strategic initiatives and preparations for potential commercial activities related to its therapies.

Additional News
In recent developments, Capricor has appointed Michael Binks, M.D. as Chief Medical Officer, bringing extensive experience in neuromuscular and rare diseases. The company has also announced its participation in Project NextGen, aimed at advancing innovative vaccines to address future pandemics. In collaboration with Nippon Shinyaku Co., Ltd., Capricor has secured exclusive commercialization rights for deramiocel in the United States and Japan. Additionally, Capricor is preparing for its 2025 Annual Meeting of Stockholders scheduled for May 22, focusing on strategic initiatives and corporate governance.