Corbus Pharmaceuticals (CRBP -2.17%) has had some good news so far in 2019. Its shares soared in April after Jefferies initiated coverage on the stock with a buy rating and a one-year price target that was more than double its share price at the time. Since then, though, Corbus' share price has drifted downward.
Investors received a little more good news when Corbus announced its second-quarter results before the market opened on Thursday. Here's what you need to know from the biotech's Q2 update.
By the numbers
Corbus reported that its revenue jumped from less than $854,000 in the prior-year period to $29.1 million in the second quarter of 2019. Analysts estimated that the company's revenue for the second quarter would come in at $3.09 million.
The company announced net income of $2.15 million, or $0.03 per share, on the basis of generally accepted accounting principles (GAAP), compared to a net loss of $12.1 million, or $0.21 per share, in the same period in 2018. The average analysts' estimate called for a net loss per share in the second quarter of $0.36.
Corbus ended the second quarter with cash, cash equivalents, and short-term investments of $73.2 million. This was an increase from the $41.7 million on hand as of the end of 2018.
Behind the numbers
Although Corbus doesn't have a product on the market yet, it reported a big increase in revenue thanks to a couple of agreements. Most of the added revenue -- $27 million -- came from the biotech's licensing agreement with Kaken Pharmaceuticals. Another $2.1 million stemmed from a development award agreement with the Cystic Fibrosis Foundation.
Because of these two agreements, Corbus even posted a profit in Q2. However, its operating expenses more than doubled from the prior-year period total to $27.4 million. Without the additional revenue from Kaken, Corbus would once again have reported a big net loss.
The most important news for Corbus in the second quarter related to its pipeline. Corbus completed enrollment in its Resolve-1 phase 3 study evaluating lenabasum in treating system sclerosis. It also presented data from phase 2 studies of lenabasum at the annual European Congress of Rheumatology conference. In addition, the company hired Robert Discordia in May as its chief operating officer. Discordia previously worked at Bristol-Myers Squibb.
Corbus expects to report top-line results from its Resolve-1 study of lenabusum in treating system sclerosis in the summer of 2020. It also anticipates announcing results from a phase 2b study of the drug in treating cystic fibrosis next summer.
The company should also soon have another program in clinical development. Corbus CEO Yuval Cohen said that a phase 1 study of CRB-4001 should begin later in 2019.