Oncternal Therapeutics, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and strategic direction compared to the previous fiscal period.

For the third quarter of 2024, Oncternal generated grant revenue of $494,000, a notable increase from $179,000 in Q3 2023. For the nine months ended September 30, 2024, grant revenue reached $1.9 million, up from $0.5 million in the same period last year. This increase is attributed to the timing of National Institutes of Health (NIH) grant activities.

Total operating expenses for Q3 2024 decreased to $9.2 million from $10.6 million in Q3 2023. The loss from operations improved to $(8.7 million) compared to $(10.4 million) in the prior year. Similarly, the net loss for Q3 2024 was $(8.5 million), down from $(9.9 million) in Q3 2023. For the nine-month period, the net loss was $(25.4 million), an improvement from $(30.3 million) in the same period of 2023.

Research and development expenses for the nine months ended September 30, 2024, totaled $19.1 million, down from $23.1 million in 2023. This reduction was primarily due to decreased direct expenses for zilovertamab and unallocated research and development costs, as the company discontinued clinical trials for ONCT-534 and ONCT-808 in September 2024. The company is now exploring strategic alternatives to maximize asset value, which may include asset sales or mergers.

As of September 30, 2024, Oncternal reported cash and cash equivalents of $13.1 million, an increase from $6.7 million at the end of 2023. However, total current assets decreased to $15.4 million from $36.1 million, and total stockholders’ equity fell to $9.1 million from $30.1 million. The accumulated deficit increased to $(223.2 million).

In September 2024, the company initiated a workforce reduction, incurring a pre-tax severance expense of $1.1 million in Q3 2024. This decision is part of a broader strategy to reduce costs amid ongoing financial challenges, as the company has expressed substantial doubt about its ability to continue as a going concern over the next twelve months without additional funding.

Overall, Oncternal's financial performance reflects a strategic pivot in response to market conditions and operational challenges, with a focus on cost management and exploring new avenues for growth.

About Oncternal Therapeutics, Inc.

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