Aileron Therapeutics, Inc.

For third quarter 2019, Aileron reported R&D expense of $4.5 million versus $4.3 million in the third quarter of 2018, and G&A expense of $3.4 million versus $3.2 million a year ago. Net loss was $7.7 million, or $0.28 per share, compared with a net loss of $7.4 million, or $0.50 per share, in the prior-year quarter. Cash, cash equivalents and investments were $24.6 million as of September 30, 2019, up from $20.7 million at December 31, 2018, and management said this should fund operations into the fourth quarter of 2020. No revenue figure was reported on the call.

Manuel Aivado framed the quarter as the result of a major strategic reset since he became CEO, saying the company refocused on two clinical programs for ALRN-6924 after reassessing the business. He emphasized that 6924 is being developed both as a combination therapy with palbociclib in MDM2-amplified cancers and as a myelopreservation agent in p53-mutant cancers, and repeatedly described the drug as unique and differentiated. His tone was confident and forward-looking, with multiple milestones expected in the first half of 2020.

Rick Wanstall said third-quarter 2019 R&D expense was $4.5 million, mainly due to higher clinical development costs for 6924, while G&A was $3.4 million. He reported a net loss of $7.7 million and cash, cash equivalents and investments of $24.6 million at quarter-end. He also said that balance should fund operations into the fourth quarter of 2020, indicating no near-term change to the runway despite the capital reallocation into myelopreservation.

Analysts focused on the myelopreservation program, asking about the FDA path, the relevance of G1 Therapeutics’ data, and what would count as success in Aileron’s studies. Management said it views G1 as a helpful regulatory precedent, but stressed 6924’s different mechanism and biomarker-based patient selection; they also pointed to potential benefits from better chemotherapy delivery and possible immune effects. Another thread was whether Aileron would expand the palbociclib combination beyond liposarcoma; management said no additional combination programs were imminent and that the company is staying focused on the two current programs.