G1 Therapeutics Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
G1 Therapeutics Reports Second Quarter 2024 Financial Results
G1 Therapeutics, Inc. (NASDAQ: GTHX), a commercial-stage oncology company, has reported its financial results for the second quarter ended June 30, 2024.
Financial Performance Summary
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | YoY Change | Consensus Estimate | Variance |
|---|---|---|---|---|---|
| Total Revenue (in millions) | $16.5 | $15.8 | -61.08% | $16.36 | +0.86% |
| Earnings Per Share (EPS) | $(0.10) | $(0.16) | - | $(0.16) | +0.06 |
Interpretation: G1 Therapeutics reported total revenue of $16.5 million for Q2 2024, which slightly exceeded the consensus estimate of $16.36 million. However, this represented a significant year-over-year decline from $42.4 million in Q2 2023, primarily due to a one-time payment for relief of future royalties in the previous year. The EPS for Q2 2024 improved to $(0.10) against the consensus estimate of $(0.16) and EPS of $(0.16) in Q1 2024.
Revenue by Segment
| Segment | Q2 2024 Revenue | Previous Guidance | Variance |
|---|---|---|---|
| COSELA Net Sales (in millions) | $15.8 | $60M - $70M (2024) | Reaffirmed Guidance |
| License Revenue (in millions) | $0.7 | - | - |
Interpretation: COSELA sales contributed $15.8 million to the total revenue, reflecting a strong quarter-over-quarter growth driven by increased vial volume. The reaffirmation of the 2024 net sales guidance of $60 million to $70 million indicates confidence in the sustained growth of this segment.
Operational Data
| Operational Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Cash, Cash Equivalents, and Securities | $60.7 million | $82.2 million |
| Operating Expenses | $20.1 million | $30.9 million |
| R&D Expenses | $5.7 million | $12.0 million |
| SG&A Expenses | $13.6 million | $17.4 million |
| Net Loss | $(5.5) million | $8.7 million (Net Income) |
| Cost of Goods Sold | $0.7 million | $1.4 million |
Interpretation: The company managed to significantly reduce its operating expenses, R&D costs, and SG&A expenses year-over-year, reflecting more efficient operations. However, the net loss for the quarter was $5.5 million.
Executive Comments
Jack Bailey, CEO of G1 Therapeutics, expressed optimism about the pending merger with Pharmacosmos, highlighting the potential for broader access to COSELA for cancer patients and the creation of shareholder value.
Dividends and Share Repurchase Program
There was no information provided on announced dividends or share repurchase programs.
Forward Guidance
G1 Therapeutics has reaffirmed its full-year 2024 revenue guidance, expecting COSELA net revenue between $60 million and $70 million. The company also anticipates that its full-year operational expenses will be 25% to 30% below those of the previous year, aiming for profitability in the second half of 2025.
Stock Price Movement
The company’s stock price remained stable with no post-event percentage change following the release of the earnings report.
In summary, G1 Therapeutics demonstrated solid quarter-over-quarter growth in COSELA revenue while maintaining efforts to reduce operating expenses amid a strategic acquisition by Pharmacosmos, anticipated to close by late Q3 2024.
