Overview
Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) is a precision oncology company with a diversified portfolio of innovative drug candidates targeting solid tumors and obesity. The company's pipeline is comprised of two experimental drugs targeting solid tumors - CRB-701, a next-generation antibody drug conjugate (ADC), and CRB-601, an anti-integrin monoclonal antibody - as well as CRB-913, a highly peripherally restricted cannabinoid type-1 (CB1) receptor inverse agonist for the treatment of obesity.
Business Overview
Corbus is committed to helping people defeat serious illness by bringing innovative scientific approaches to well-understood biological pathways. The company's oncology pipeline is anchored by CRB-701, a next-generation ADC that targets the expression of Nectin-4 on cancer cells to release a cytotoxic payload. In February 2023, Corbus obtained an exclusive license from CSPC Megalith Biopharmaceutical Co. Ltd. to develop and commercialize CRB-701 in the United States, Canada, the European Union, the United Kingdom, and Australia. The Investigational New Drug (IND) application for CRB-701 was cleared by the U.S. Food and Drug Administration (FDA) in 2022, and the drug is currently being investigated by CSPC in a Phase 1 dose-escalation clinical trial in patients with advanced solid tumors in China.
Corbus' second oncology asset, CRB-601, is a potent and selective anti-αvβ8 monoclonal antibody that blocks the activation of latent TGFβ found on cancer cells. In preclinical models, CRB-601 has demonstrated enhanced anti-tumor activity when combined with an anti-PD-1 checkpoint inhibitor compared to each single agent on its own. The data suggests that blockade of latent TGFβ production by CRB-601 can lead to changes in immune cell infiltration in the tumor microenvironment, potentially enhancing the benefit of PD-1 blockade. Corbus expects to enroll the first patient in a Phase 1 study of CRB-601 in the summer of 2024.
The company's obesity pipeline is anchored by CRB-913, a second-generation highly peripherally restricted CB1 receptor inverse agonist designed to treat obesity. In a diet-induced obesity (DIO) mouse model, CRB-913 demonstrated a reduction in body weight, body fat content, leptinemia, insulin resistance, liver triglycerides, liver fat deposits, and improvements in liver histology. These outcomes were further improved when CRB-913 was used in combination with incretin analogs. Corbus is currently conducting IND-enabling studies and expects to treat the first patient in a Phase 1 study of CRB-913 in the first quarter of 2025.
Financials
For the full year 2023, Corbus reported an annual net loss of $44,603,316, with no revenue generated. The company's annual operating cash flow and free cash flow were both -$36,100,473.
In the first quarter of 2024, Corbus reported a net loss of $6,898,771, a significant improvement from the $17,744,812 net loss recorded in the same period of 2023. This decrease was primarily attributable to a $7,627,000 reduction in research and development expenses, driven by a $7,500,000 decrease in upfront licensing costs and a $1,200,000 decrease in milestone payments.
Quarterly general and administrative expenses decreased by $48,000 to $3,861,000 in the first quarter of 2024, compared to $3,909,000 in the same period of 2023. The decrease was mainly due to a $287,000 reduction in salary expense, partially offset by a $151,000 increase in franchise taxes.
Other income (expense), net, for the first quarter of 2024 was income of $2,724,000, a significant improvement from the $448,000 expense recorded in the same period of 2023. This increase was primarily attributable to the receipt of $2,500,000 in refundable research and development credits from a foreign tax authority, as well as higher investment income.
Liquidity
As of March 31, 2024, Corbus had total current assets of $121,696,000 and current liabilities of $25,923,000, resulting in working capital of $95,773,000. The company's cash, cash equivalents, investments, and restricted cash totaled $120,773,000, with approximately $115,944,000 held within the United States.
Corbus expects its current cash, cash equivalents, and investments of approximately $120,103,000 as of March 31, 2024 to be sufficient to meet its operating and capital requirements to support its operations through the first quarter of 2027, based on current planned expenditures.
Recent Developments
In May 2023, Corbus entered into an Open Market Sale Agreement with Jefferies LLC, under which the company is authorized to offer and sell up to $75,000,000 of its common stock. During the first quarter of 2024, the company sold 939,388 shares of common stock and received gross proceeds of approximately $21,123,000.
On January 31, 2024, Corbus entered into an underwriting agreement with Jefferies for a public offering of 4,325,000 shares of common stock at a price of $19.00 per share, raising gross proceeds of approximately $94,500,000. The company also granted the underwriters a 30-day option to purchase up to an additional 648,750 shares, which was exercised in full.
On March 6, 2024, K2HealthVentures LLC converted $1,125,000 of the outstanding loan balance into 142,857 shares of Corbus' common stock at a conversion price of $7.875 per share.
Risks and Challenges
Corbus faces several risks, including the ability to successfully develop and obtain regulatory approval for its product candidates, the availability of funding to support its operations, and the potential for competition in the markets it seeks to address. The company's ability to generate revenue is also dependent on the successful commercialization of its drug candidates, which may take several years and is subject to significant uncertainty.
Outlook
Despite these risks, Corbus is well-positioned for growth with its diversified pipeline of innovative oncology and obesity drug candidates. The company's recent financing activities have strengthened its balance sheet, providing the resources necessary to advance its clinical programs. With the CRB-701 and CRB-601 programs progressing through clinical development and the CRB-913 program advancing towards the clinic, Corbus is poised to deliver meaningful value for shareholders in the years to come.
Conclusion
Corbus Pharmaceuticals Holdings, Inc. is a precision oncology company with a promising pipeline of drug candidates targeting solid tumors and obesity. The company's strong financial position, coupled with its innovative approach to well-understood biological pathways, positions Corbus for long-term success. As the company continues to advance its clinical programs and explore strategic partnerships, investors should closely monitor Corbus' progress and the potential for value creation.