Cinclus Pharma has reported a net loss of roughly SEK 79 million in its second quarter, driven by continued spending on its lead phase III study, HEEALING1. The company's operating expenses reached SEK 96 million, while net sales were about SEK 2 million, mostly from license income tied to the Zentiva partnership for linaprazan glurate in Europe.
The HEEALING1 study, which completed enrollment in early July with 523 randomized patients across eight European countries, is expected to report top-line results in the fourth quarter. Management argues that the drug's acid-control profile could set it apart from proton pump inhibitors and other PCABs already on the market.
Clinical Update
The company is trying to build a treatment for severe erosive gastroesophageal reflux disease, a market it says includes about 10 million patients across the U.S. and Europe. The HEEALING1 study remains on schedule, with the main financial story being continued spending ahead of a key data readout.
Financial Outlook
The company's small revenue base and recurring losses are typical for a biotech at this stage. The stock currently trades at $1.21 with a market capitalization of $56.25 million, and has declined 40% year-to-date, reflecting investor caution in the lead-up to critical trial results.
