Salarius Pharmaceuticals, Inc.

For Q2 2022, Salarius reported net loss of $4.7 million, or $0.09 per share, versus a net loss of $3.1 million, or $0.07 per share, in Q2 2021. R&D expense was $2.9 million versus $2.1 million a year ago, and G&A expense was $1.8 million versus $1.6 million last year. Net cash used in operating activities was $3.6 million for the quarter, compared with $3.2 million in Q2 2021. For the first half of 2022, net loss was $10.8 million, or $0.22 per share, versus $4.9 million, or $0.13 per share, in the first half of 2021; operating cash use was $7.1 million, and investing cash use was $1.5 million related to the targeted protein degradation portfolio purchase. Cash, cash equivalents and restricted cash were $22.6 million as of June 30, 2022, down from $29.2 million at December 31, 2021. Management said current cash is expected to fund planned operations into 2023.

David Arthur struck an upbeat, milestone-driven tone and emphasized that both lead programs are moving forward on schedule. He highlighted expanding clinical-site activity for seclidemstat, an upcoming data-rich second half of 2022, and the strategic importance of SP-3164 as a next-generation molecular glue. He also said Salarius will shift to event-driven conference calls going forward so investors can get updates when meaningful data is available.

Mark Rosenblum focused on the quarter’s higher spending and the balance sheet. He said Q2 net loss widened to $4.7 million from $3.1 million, mainly due to higher operating expenses and the absence of grant revenue; R&D rose to $2.9 million, largely from SP-3164 spending, while G&A rose to $1.8 million due to personnel and proxy solicitation costs. He noted no grant revenue in Q2 or the first half, $1.6 million of CPRIT receivable on the balance sheet, and $22.6 million of cash, cash equivalents and restricted cash at quarter-end, which he expects to fund operations into 2023.

The most notable questions centered on the Volition Rx collaboration, seclidemstat enrollment and data timing, and the status of SP-3164 IND-enabling work. Management said the Volition work will use plasma samples from sarcoma patients and hopes to begin collecting biomarker data toward the end of this year and into early next year. On seclidemstat, they would not give exact enrollment numbers but said site additions show continued interest and that data could be shared via press release or conference submission; on SP-3164, they said IND-enabling studies began last quarter and the IND remains on track for the first half of next year.