Black Diamond Therapeutics Reports Improved Financials, Announces Corporate Restructuring Plan

Black Diamond Therapeutics, Inc., a clinical-stage oncology company focused on developing MasterKey therapies for oncogenic mutations, reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a net loss of $15.6 million for the third quarter, an improvement from a net loss of $23.0 million in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $53.7 million, down from $63.0 million in the prior year.

Total operating expenses for the third quarter decreased to $18.1 million from $24.0 million year-over-year, with research and development expenses also declining to $12.9 million from $16.2 million. The reduction in expenses was attributed to decreased spending on various research programs, including a $1.1 million decrease related to the BDTX-4933 program, which is being deprioritized. General and administrative expenses also fell to $5.2 million from $7.9 million, primarily due to lower consulting and professional fees.

As of September 30, 2024, the company reported cash and cash equivalents of $23.4 million, a significant decrease from $56.2 million at the end of 2023. Total current assets were $115.5 million, down from $134.0 million, while total assets decreased to $137.9 million from $158.6 million. The accumulated deficit reached $471.1 million, reflecting the ongoing financial challenges faced by the company.

In terms of financing activities, Black Diamond raised approximately $25.0 million through the sale of shares under its ATM program and completed a follow-on offering in July 2023, generating net proceeds of approximately $71.9 million. However, cash used in operating activities for the nine months ended September 30, 2024, was $47.2 million, compared to $52.8 million in the same period of 2023.

Strategically, the company announced a corporate restructuring plan on October 7, 2024, aimed at optimizing development plans for its lead product candidate, BDTX-1535, and extending its cash runway. This plan includes a reduction in workforce by approximately half, with estimated charges of $2.7 million primarily for severance payments. The restructuring is expected to be completed by the end of 2024, with anticipated cost savings to fund operations into the second quarter of 2026.

Overall, Black Diamond Therapeutics continues to navigate significant financial losses while focusing on advancing its clinical programs, particularly BDTX-1535, which is currently in a Phase 2 trial for non-small cell lung cancer and glioblastoma.