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RAIN

Rain Enhancement Technologies Holdco Inc

Rain Enhancement Technologies Holdco Inc Q2 FY2023 earnings call

August 10, 2023 · fiscal period ended 2023-06

EPS · actual vs est

$-0.61 / $-0.49Miss -24.5%

Revenue · actual vs est

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Summary

Generated 2023-08-10

Management highlights

  • Rain reported that the Phase 3 global registrational trial for milademetan in dedifferentiated liposarcoma did not meet the primary endpoint. - Suspended enrollment of the MANTRA-2 study and began closing it down. - Plan to present final data from the MANTRA Phase 3 study and updated data from the MANTRA-2 Phase 2 study in Q4 2023. - Implemented cost-saving measures including workforce reduction to moderate cash burn. - Corporate development team reviewing opportunities to license or acquire clinical stage programs and technologies across small molecule and large molecule approaches.
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Segment performance

Rain Oncology reported a net loss of $22.1 million for the three months ended June 30, 2023, compared to a net loss of $17.6 million in the same period in 2022. General and administrative expenses were $5.4 million for Q2 2023 vs. $3.5 million in Q2 2022. Restructuring charges of $2.8 million were recorded in Q2 2023. As of June 30, 2023, Rain had $86.3 million in cash, cash equivalents, and short-term investments.

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Guidance

  • Rain anticipates quarter-end cash position will provide runway into year-end 2026 in absence of corporate transaction and partner financing. - Significant reduction in cash burn expected in Q3 and beyond.
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Q&A highlights

Q: Potential new opportunities and modality interest?

A: Avanish Vellanki said they're opportunistic across precision oncology strategies, both small molecule and large molecule.

Q: Future of milademetan and RAD52 program?

A: Avanish Vellanki said no plans for milademetan currently and RAD52 program is not being moved forward.

Q: Cash burn guidance and SG&A/R&D?

A: Nelson Cabatuan said cash burn in Q3 onwards will be significantly lower than prior quarters.

Q: Reasons for milademetan underperformance?

A: Robert Doebele said to refer to upcoming Q4 presentations.

Q: Sweet spot for licensing deals?

A: Avanish Vellanki said looking for clinical stages to leverage their clinical organization.

Q: Weighing new asset vs corporate options?

A: Avanish Vellanki said looking at attractiveness and actionability of opportunities.

Q: Technology platform and licensing limits?

A: Avanish Vellanki said will provide details when appropriate.

View in transcript ↓

Key numbers

Reported versus consensus

Earnings calendar feed

MetricReportedConsensusDeltaPrior year
EPS$-0.61$-0.49-24.5%
Revenue

Transcript

August 10, 2023

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Prior quarters

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