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Research and development expenses in the reported quarter rose by $2 million, primarily due to increased spending on the soquelitinib clinical trial for T-cell lymphoma.
Shares of Corvus Pharmaceuticals, Inc., fell in Tuesday's extended trading hours after the company posted financial results below Wall Street expectations, although retail traders remained optimistic.
The pre-revenue biotech posted an adjusted fourth-quarter (Q4) loss of $0.18 per share, steeper than the expected $0.12 loss.
Research and development expenses in the reported quarter rose to $6 million from $4 million a year earlier, primarily due to increased spending on the soquelitinib clinical trial for T-cell lymphoma.
R&D expenses climbed to $19.4 million for the full year from $16.5 million in 2023.
"We continue to advance our selective ITK inhibitor, soquelitinib, in a range of diseases," said CEO Richard Miller.
Preclinical data supports its potential in a range of conditions, including solid tumors, autoimmune disorders such as ALPS and systemic sclerosis, as well as inflammatory diseases like asthma and psoriasis.
Corvus is nearing complete enrollment in the third cohort of its Phase 1 atopic dermatitis trial, while its Phase 3 trial in peripheral T-cell lymphoma (PTCL) is enrolling patients across multiple sites.
The company recently launched a Phase 2 trial for ALPS and plans to initiate a solid tumor study in the third quarter of 2025.
As of Dec. 31, 2024, Corvus held $52 million in cash, cash equivalents, and marketable securities, up from $27.1 million a year ago, which it expects to fund operations into the first quarter of 2026.
On Stocktwits, sentiment for Corvus flipped into 'extremely bullish' territory from 'bearish' a day ago, accompanied by a 1,000% spike in message volume.
One user was bullish after the company's chief executive said the full data for the first three cohorts of its atopic dermatitis trial would be presented at the Society for Investigative Dermatology (SID) Annual Meeting in San Diego in May.
Another retail watcher expects the stock to close above $4 on Wednesday.
Corvus stock is down more than 28% this year but has more than doubled over the past 12 months. According to Koyfin, out of the six analysts covering the stock on Wall Street, five rate it 'buy' and one rates it 'strong buy.'
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