Context Therapeutics Reports Significant Financial Developments, Cash and Cash Equivalents Rise to $84.8 Million

Context Therapeutics Inc. reported significant financial developments in its 10-Q filing for the three and nine months ended September 30, 2024. The company, focused on developing T cell engaging bispecific antibodies for solid tumors, experienced a substantial increase in cash and cash equivalents, rising to $84.8 million from $14.4 million at the end of 2023. This increase was primarily due to a private placement that raised approximately $100 million in May 2024.

Total current assets also surged to $86.1 million, compared to $16.0 million at the end of the previous fiscal year. Conversely, total current liabilities decreased to $2.3 million from $4.2 million, resulting in total stockholders' equity of $83.9 million, a significant rise from $11.9 million at the end of 2023.

Operating expenses for the third quarter of 2024 reached $16.8 million, a 275% increase from $4.5 million in the same period of 2023. This rise was attributed to heightened research and development activities, particularly for new product candidates CT-95 and CT-202, which accounted for $4.0 million and $11.0 million in expenses, respectively. The loss from operations for the third quarter was $(18.7) million, compared to $(6.2) million in the prior year, marking a 203% increase.

For the nine months ended September 30, 2024, the net loss was $(23.4) million, up from $(17.2) million in the same period of 2023. The net loss per share improved to $(0.46) from $(1.08), reflecting a significant increase in the weighted average shares outstanding due to the recent equity financing.

The company discontinued the development of its Onapristone extended release product in March 2023, which contributed to a decrease in related expenses. The focus has shifted to advancing clinical trials for CTIM-76, CT-95, and CT-202, with the first patient for CT-95 expected to be dosed in Q1 2025.

Strategically, Context Therapeutics made notable acquisitions, including CT-95 from Link Immunotherapeutics for $3.75 million and a license agreement with BioAtla for CT-202, which involved an upfront payment of $11.0 million. These developments are expected to enhance the company's product pipeline and market position.

Overall, while the company continues to incur significant losses, the recent capital raise and strategic acquisitions position it to advance its clinical programs and operational capabilities. Future funding needs will likely be addressed through additional equity offerings, debt financing, and collaborations.