Along with quarterly results, the clinical-stage company provided an encouraging business update.
This was a good week to be invested in clinical-stage biotech Cargo Therapeutics (CRGX 1.04%). The company dropped its second-quarter earnings release, and investors were quite cheered by the progress the business is making. They also liked that its net loss for the period wasn’t as deep as analysts expected. Across the five trading days, Cargo’s stock price rose by just under 19%, according to data compiled by S&P Global Market Intelligence.
The net loss was narrower than anticipated
As Cargo has not yet commercialized any of its treatments in development, it is currently pre-revenue. Like any business, of course, it has expenses. As a result, it posted a net loss for the quarter. This amounted to slightly over $44.3 million, or $1.02 per share, which was much steeper than the almost $18 million deficit in the same period of 2023.
However, on average, analysts tracking Cargo stock were expecting a notably worse result. Collectively, they were modeling a per-share net loss of $1.41.
Another encouraging development was revealed in the business update part of the biotech’s earnings release. Cargo revealed that its investigational cancer drug Firi-cel CRG-022 is fully immersed in Phase 2 clinical testing. The company added that all 31 trial sites have been activated, with the 38 participants in the study receiving doses of the treatment.
Nine-figure proceeds from new financing
In addition to those pieces of news, Cargo’s financing seems secure for the moment. The biotech said it closed a $110 million private investment in public equity (PIPE) financing round during the quarter. This has extended its cash runway through 2026, the company added.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.