Dogwood Therapeutics Inc (DWTX) Q3 2024 Earnings Call Highlights: Strategic Financing and ...

In This Article:

  • Cash: $2 million as of September 30, 2024.

  • Strategic Financing: $19.5 million, with $16.5 million received and an additional $3 million expected in February 2025.

  • Working Capital: Approximately $23 million, including combined cash of the entities at the time of the business combination.

  • Phase Two Study - Cancer Related Pain: Statistically significant pain reduction in a study with 165 patients.

  • Phase Two Study - Chemotherapy Induced Neuropathic Pain: 125 patients, higher doses of Hal Neuron showed greater pain reduction.

  • Long COVID Proof of Concept Study: 22 patients treated, significant improvement in fatigue and other symptoms compared to 17 matched controls.

  • Long COVID Phase Two Study: 45 patients enrolled, results expected shortly.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Dogwood Therapeutics Inc (NASDAQ:DWTX) announced a strategic business combination with Pharmagest Holding Incorporated, resulting in a significant expansion of their pipeline.

  • The company secured a $19.5 million strategic financing, with $16.5 million already received and an additional $3 million expected in February 2025, providing approximately $23 million in working capital.

  • The expanded pipeline includes Hal Neuron, a NAV 1.7 modulator, which has shown promising results in reducing cancer-related pain and chemotherapy-induced neuropathic pain.

  • Dogwood Therapeutics Inc (NASDAQ:DWTX) has a strong management team with extensive experience in developing and commercializing blockbuster drugs.

  • The company is poised to release top-line results from their long COVID phase two study and has a clear path for future development milestones.

Negative Points

  • Dogwood Therapeutics Inc (NASDAQ:DWTX) reported a cash balance of only $2 million as of September 30, 2024, prior to the strategic financing.

  • The company is reliant on future financing and successful milestone achievements to sustain operations beyond 2025.

  • There are no FDA-approved treatments for chemotherapy-induced neuropathic pain, indicating a challenging regulatory pathway.

  • The long COVID study results are still pending, and the company faces uncertainty regarding the efficacy of their treatment in this area.

  • The company has yet to finalize the design and regulatory approval for the phase two B trial of Hal Neuron, which could delay progress.

Q & A Highlights

Q: Can you discuss the durability of response for Hal Neuron and any dose-response relationship observed? A: (R. Michael Gendreau, Chief Medical Officer) In the cancer-related pain study, the average response duration was 57 days for Hal Neuron compared to 10.5 days for placebo among responders. This was from a single cycle of four days of injections. We observed a dose-response relationship in the chemotherapy-induced neuropathic pain study, with the best results at the highest dose, which we are taking forward into the phase two B study.