Genelux 2024 Q1 Earnings Misses Targets as Net Loss Narrows 24.3%

Genelux reported a substantial decrease in revenue for fiscal 2024 Q1, seeing a 95.3% drop from the previous year. Despite narrowing its net loss by 24.3%, the results missed analyst expectations. The company forecasts maintaining its cash runway into the third quarter of 2026, aligning with anticipated clinical trial outcomes. Genelux's guidance remains in-line with previous projections, reflecting steady progress in its strategic initiatives.

Revenue

The total revenue of Genelux fell drastically by 95.3%, reaching $8,000 in 2024 Q1, compared to the $170,000 achieved in 2023 Q1.

Earnings/Net Income

Genelux narrowed its losses to $0.29 per share in 2024 Q1 from a loss of $0.53 per share in 2023 Q1, representing a 45.3% improvement. Meanwhile, the company reduced its net loss by 24.3% to $-7.85 million compared to the $-10.36 million net loss reported in 2023 Q1. Despite these improvements, the EPS remains a negative indicator of performance.

Post-Earnings Price Action Review

Buying Genelux shares after a quarter of equal revenue and holding for 30 days has yielded a 28.77% return over the past five years, showcasing the efficacy of this strategy in harnessing post-earnings momentum. This approach capitalizes on patterns of stock performance following earnings announcements. The consistent returns over the years reflect a reliable method for investors to leverage the stock's upward movements after revenue stabilization. Although past performance is not necessarily indicative of future results, this strategy underscores valuable insights into market behavior and investor sentiment in response to earnings announcements and revenue consistency.

CEO Commentary

"The first quarter of 2025 has been highly productive and sets a strong foundation for the year ahead. We are well positioned to advance Olvi-Vec across multiple high-need cancer indications, with encouraging regulatory feedback from the FDA on our OnPrime Phase 3 registrational trial in resistant/refractory ovarian cancer, promising early lung cancer clinical data from our ongoing Phase 1b/2 study, and increasing patient enrollment in our U.S. Phase 2 lung cancer trial," said Thomas Zindrick, President, CEO and Chairman of Genelux. "We are energized by our momentum and look forward to advancing our strategic initiatives through key upcoming value inflection points this year and into 2026."

Guidance

"We expect our existing cash, cash equivalents, and short-term investments will provide runway into the third quarter of 2026," stated Matthew Pulisic, Chief Financial Officer. The company anticipates an interim readout from the ongoing Phase 2 trial for recurrent non-small cell lung cancer in the second half of 2025. Additionally, the Phase 3 trial's topline data is expected in the first half of 2026, with a potential traditional approval pathway indicated by the FDA if clinical milestones are achieved.

Additional News

In a significant corporate update, Genelux appointed Matthew Pulisic as the new Chief Financial Officer effective January 30, 2025. Pulisic brings over 19 years of finance and commercial experience from Arrowhead Pharmaceuticals and Amgen. Additionally, Genelux completed a $10.5 million underwritten offering of common stock in March, bolstering its financial position. The co-development partnership with Newsoara BioPharma yielded promising preliminary data from the Phase 1b/2 trial of Olvi-Vec in lung cancer patients, demonstrating a 71% disease control rate. This collaboration emphasizes potential therapeutic advancements, reflecting significant strides in their joint clinical endeavors.

Price Action

The stock price of Genelux has dropped 6.80% during the latest trading day, plummeted 21.55% during the most recent full trading week, and dropped 6.80% month-to-date.