Q3 2025 Earnings Call Contradictions: AI Monetization, withZeta, and Trial Timelines

Date of Call: November 13, 2025

Financials Results

• EPS: $0.39 loss per share (net loss ~ $4.2M) compared to $0.42 loss (net loss ~ $4.5M) in Q3 2024

Guidance:

• Cash runway into approximately Q3 2026 based on current operating plans.
• IND submission for pediatric CNS program expected within the next few weeks; initial dosing anticipated early 2026.
• LP-300 interim 31-event analysis now tracking to early 2026; December webinar will present additional patient follow-up but not the 31-event trigger.
• Denmark investigator-led LP-184 trial approved and expected to start late December or early January.
• withZeta early demos next week with broader rollout and learning in Jan–Feb/Q1; continued commercialization of RADR modules.

Business Commentary:

• Drug Development Milestones:
• Lantern Pharma's LP-184 Phase Ia clinical trial successfully achieved all primary endpoints, with a 48% clinical benefit rate in evaluable cancer patients.

• The success was driven by the AI-driven precision medicine approach, validating the hypothesis of synthetic lethality and DNA damage repair.

• AI Platform and Modules:

• Lantern's AI platform, RADR, demonstrated over 80% prediction success across multiple use cases, including BBB permeability prediction with 94% accuracy.
• The platform's commercial readiness and market potential, along with new modules like withZeta, target significant market opportunities, such as the blood-brain barrier technology market.

• Funding and Financial Stability:
• Lantern Pharma had approximately $12.4 million in cash and marketable securities as of September 30, 2025, providing runway into Q3 2026.

• The company has been securing additional funding through ATM sales agreements, raising gross proceeds of approximately $1.6 million in Q3 2025, supporting its financial stability.

• Commercial Expansion and Partnerships:

• Lantern's AI modules are now available for licensing to biopharma partners and research centers, demonstrating commercial readiness.
• The company continued to expand global clinical trials, with trials in Japan and Taiwan providing access to large patient populations in Asia.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management described Q3 as a "pivotal inflection point," highlighted LP-184 Phase Ia achieving a 48% clinical benefit rate and tumor reductions in DDR-mutant patients, and showcased commercial readiness of RADR modules; CFO noted cash of ~$12.4M providing runway into Q3 2026 while signaling the need for additional funding.

Q&A:

• Question from Unidentified Analyst (Unidentified): Tracking toward an interim event analysis for the LP-300 trial?
  Response: Not expecting the 31-event interim by the December webinar; patients are remaining on study longer and the 31-event trigger is now expected in early 2026.

• Question from Unidentified Analyst (Unidentified): What is the status and timing for the Denmark investigator-led trial?
  Response: Denmark trial IRB approved with a project manager assigned; site activation expected late December or early January at one investigator-led site.

• Question from Unidentified Analyst (Unidentified): Guidance on IND submission timing for the pediatric CNS program (STAR-001)?
  Response: Expect IND submission within the next few weeks; initial patient dosing is anticipated in early 2026, timing dependent on site setup.

• Question from Unidentified Analyst (Unidentified): Timeline and rollout for withZeta?
  Response: withZeta news next week; initial demos to collaborators with iterative learning anticipated, broader rollout across January–February/Q1.

• Question from Unidentified Analyst (Unidentified): Plans for advancing LP-184 indications and partnering?
  Response: Will prioritize highest-impact indications from Phase Ia into targeted Phase Ib/II trials and pursue partnerships—pharma interest contingent on early Phase Ib/II data.

• Question from Unidentified Analyst (Unidentified): Was Zeta developed internally and what is its purpose?
  Response: Developed internally from LP-184/284 rare-cancer work to be a front-facing multi-agentic AI co-scientist enabling rapid, evidence-based rare cancer research and trial design; demos available.

• Question from Unidentified Analyst (Unidentified): Does the STAR-001 pediatric brain tumor trial design allow inclusion of other pediatric high-grade gliomas?
  Response: Yes; the trial is designed to allow inclusion of other pediatric high-grade gliomas, including diffuse midline gliomas.

Contradiction Point 1

AI Platform Monetization Strategy

It reflects a shift in the company's strategy for monetizing its AI modules, which could impact collaboration and revenue growth.

What is the status of the withZeta portion of your AI platform? - Unknown

2025Q3: We will have additional news on withZeta next week. There will be an initial rollout with some interesting and bumpy moments as we learn. It is already in use internally and will be available for select demo to collaborators and partners. - Panna Sharma(CEO)

What are your plans to commercialize AI modules like the blood-brain barrier penetration module, including monetization strategy and user data's role in platform development? - Unknown

2025Q1: We will start with a freemium model to attract users and drive collaboration. Data input from users will help strengthen and diversify our platform. Our roadmap involves offering simpler modules first, with more complex workflows to follow. Our primary focus remains advancing our pipeline, and we aim to create tech partnerships through these modules. - Panna Sharma(CEO)

Contradiction Point 2

Indication Selection for LP-184

It indicates a change in the company's strategy for selecting indications for LP-184 trials, potentially affecting the pace and focus of drug development.

Can you explain the LP-184 indications? - Unknown

2025Q3: We plan to identify the best indications for larger scale trials with partners. All indications show great potential and interest from pharma companies, but they want to see early Phase Ib, Phase II data. - Panna Sharma(CEO)

Regarding LP-184 trial, can you update us on enrollment and when preliminary data might be available? - Unknown

2025Q1: LP-184 trial is expected to be fully enrolled in June. We will have around 60 to 65 patients. Preliminary data, including biomarker correlations, will follow soon after. - Panna Sharma(CEO)

Contradiction Point 3

Trial Enrollment Pace

It involves changes in the reported pace and efficiency of trial enrollment, which could impact the timeline and success of clinical trials, as well as investor expectations.

What is the status of the Denmark trial? - Unidentified (Unidentified Company)

2025Q3: The Denmark trial is approved, IRBs are set, and a project manager has been assigned. We expect the trial to start in late December or early January at one site, which is investigator-led. - Panna Sharma(CEO)

How does enrollment pace and quality in Asia compare to the U.S.? - John (Analyst)

2024Q4: Enrollment in Asia is about 2 to 4x faster than in the U.S. with equal output, which is expected to accelerate further this year. - Panna Sharma(CEO)

Contradiction Point 4

withZeta AI Platform Update

It involves changes in the reported status and timeline of the withZeta AI platform, which is a key strategic initiative for the company's drug discovery and development efforts.

What is the status of the withZeta component of your AI platform? - Unknown

2025Q3: We will have additional news on withZeta next week. There will be an initial rollout with some interesting and bumpy moments as we learn. It is already in use internally and will be available for select demo to collaborators and partners. - Panna Sharma(CEO)

What should we focus on in your ADC programs moving forward? - Unknown Analyst

2024Q4: Our AI platform is also making rapid advances this year, and we expect to have major updates on our AI platform by year-end. - Panna Sharma(CEO)

Contradiction Point 5

LP-300 Trial Progress and Interim Event Analysis

It involves differing expectations regarding the timing of interim event analysis for the LP-300 trial, which could impact clinical trial milestones and investor expectations.

Can you provide an interim analysis for the LP-300 trial? - Unidentified (Unidentified Company)

2025Q3: We are not expected to reach 31 events by the December webinar, which is positive as it indicates patients are staying on the trial longer. We will report clinical data and insights. The trial is expected to reach 31 events sometime in early 2026. - Panna Sharma(CEO)

What's the status of the HARMONIC trial and the company's plans for expansion into Asia? - Unidentified (Unidentified Company)

2024Q3: The HARMONIC trial, which is testing LP-300, which is our repurposed drug, has been very encouraging. We have now dosed 20 patients and anticipate hitting our first interim endpoint of 31 events in the fourth quarter. - Panna Sharma(CEO)