Corvus Pharmaceuticals, Inc. Q1 FY2025 earnings call

• Richard Miller discussed Phase 1 soquelitinib atopic dermatitis data presented at SID, with favorable safety and efficacy across cohorts, especially Cohort 3 showing earlier and deeper responses. - Amended Phase 1 trial protocol to include an extension cohort evaluating 200-milligram twice per day dose for 8 weeks with 30-day follow-up. - Ongoing Phase 3 registrational trial for soquelitinib in relapsed peripheral T-cell lymphoma, aiming for interim data in late 2026. - First patient treated in Phase 2 trial for soquelitinib in ALS, with potential initial data in late 2025 or early 2026. - Soquelitinib shows broad potential for oncology and immune diseases, including planned studies for solid tumors and other immune diseases.

In the first quarter of 2025, research and development expenses totaled $7.5 million, an increase of $3.4 million compared to the same period in 2024, primarily due to higher clinical trial and manufacturing costs for soquelitinib and increased personnel-related costs. Net income for Q1 2025 was $15.2 million, including a noncash loss of $0.5 million related to Angel Pharmaceuticals and a noncash gain of $25.1 million from the change in fair value of the warrant liability. Total stock compensation expense was $1.3 million in Q1 2025 vs. $0.7 million in Q1 2024. As of March 31, 2025, cash, cash equivalents, and marketable securities were $44.2 million, down from $52 million at December 31, 2024. In May 2025, warrants were exercised, generating approximately $31.3 million in cash proceeds. Current cash, including warrant proceeds, is expected to fund operations into the fourth quarter of 2026.

• Current cash, including warrant proceeds, is expected to fund operations into the fourth quarter of 2026. - Amended Phase 1 trial protocol to evaluate longer treatment duration to explore deeper responses. - Phase 2 trial for atopic dermatitis remains on track to initiate before the end of 2025.

Q: How does the placebo effect compare in this atopic dermatitis trial compared to other AD trials?

A: Richard Miller stated placebos had a lower rate of EASI 75s and 90s, with no placebos reaching those endpoints, and placebos behaved similarly to others but with less improvement over time compared to longer-term studies.

Q: Can you comment on differential response in patients with or without prior systemic treatment?

A: Richard Miller said it's too early to determine, but mentioned some patients refractory to DUPIXENT showed improvement.

Q: What's the plan for the Phase 2 trial dose design?

A: Richard Miller noted Phase 2 will likely include at least two active dose groups, with 200 milligrams BID likely being one, and further details not finalized yet.

Q: Thoughts on potential combinations for soquelitinib?

A: Richard Miller mentioned there are opportunities to combine soquelitinib with other agents due to its nonoverlapping mechanism, safety, and oral administration, but currently focusing on monotherapy.