Lantern Pharma Inc. Q1 FY2024 earnings call

• AI-driven drug development: Computational and AI-driven approaches are transforming drug discovery and development. Lantern's RADR platform is guiding the rapid development of AI-guided molecules into clinical trials at a pace and cost unheard of traditionally.
• Pipeline progress: LP-184 is in Phase I clinical trials with no dose-limiting toxicities observed, on track for a clinical readout later in 2024. LP-284 is in Phase Ia clinical trials with no dose-limiting toxicities. LP-300 has obtained regulatory allowance to commence trials in Japan and Taiwan. Starlight Therapeutics, a subsidiary focused on CNS and brain cancers, filed a clinical trial protocol for a Phase Ib dose optimization and expansion cohort in recurrent IDH wild-type high-grade gliomas. Advancement in AI-powered module for ADC development, with a cryptophycin-linked ADC showing picomolar potency in a wide range of solid tumors in 6 months.
• Partnerships: Established an AI-driven collaboration with Oregon Therapeutics, leveraging RADR for a novel first-in-class inhibitor.
• Financials: Cash position provides a strong runway, team is productive under hybrid operating model with ~20 employees and 4 FTE consultants, expected to expand slightly in coming quarters.

For the first quarter ended March 31, 2024, Lantern Pharma recorded a net loss of approximately $5.4 million (or $0.51 per share) compared to a net loss of approximately $3.9 million (or $0.36 per share) in the first quarter of 2023. R&D expenses were approximately $4.3 million in Q1 2024, up from approximately $2.6 million in Q1 2023, driven by increased clinical trial activity. General and administrative expenses were approximately $1.5 million in Q1 2024, down slightly from $1.7 million in Q1 2023. Cash position as of March 31, 2024 was approximately $38.4 million, which is expected to provide a cash runway into at least Q3 of 2025. The company had 10,758,805 shares of common stock outstanding as of March 31, 2024, with fully diluted shares outstanding of approximately 11.92 million shares.

• Cash balance of approximately $38.4 million as of March 31, 2024 is expected to provide cash runway into at least Q3 of 2025.
• Team size is expected to expand slightly in coming quarters as additional experienced individuals are added to advance the mission.

• Forward-looking statements are subject to risks and uncertainties, including results of clinical trials and impact of competition. Factors causing actual results to differ materially from forward-looking statements can be found in the annual report on Form 10-K for the year ended December 31, 2023.
• Challenges in clinical trial enrollment in certain regions due to external factors like doctor strikes in South Korea.

Q: The Oregon arrangement is another AI collaboration?

A: Oregon has a unique inhibitor that works through a very unique mechanism, a first-in-class drug inhibiting cancer metabolism. The collaboration allows Lantern to own IP alongside Oregon and have rights to license their drug. The benefits for Lantern are clear with potential upside in equity and IP around combinations and targeted insights.

Q: Three-part question about ADC development, Starlight milestones, and RADR platform acceleration with Oregon collaboration A: For ADC, key inflection points are zeroing in on target and preclinical analysis, with expectation to get into clinic in 2025. For Starlight, expect FDA feedback on Supplement B and potential independent financing, with events this year. The RADR platform accelerates drug development by modeling data, getting in silico insights, validating in lab, and generating IP. The collaboration with Oregon fits the platform's approach and could expand over time with suitable tech partners.

Q: When will the sites be finalized for the Harmonic trial in Asia?

A: There are 5 sites identified in Japan and 5 in Taiwan, totaling 10 sites. South Korea was paused due to doctor strikes, but Japan and Taiwan sites are very productive and can supply bulk of needed patients for the trial