(The numbers in parenthesis refer to the corresponding quarter of last year)

The report in itself was no surprise as the operating loss was in line with expectations at DKK9.4m, and the cash position amounted to DKK11.9m at the end of the quarter. The report also mentions that it received the milestone payment announced in January relating to GMP manufacturing (USD 0.5m), which would be roughly DKK3.5m. However, this is not fully disclosed in the report.

During the quarter, Curasight announced a strategy to accelerate its therapeutic platform through a phase I/IIa basket trial in five indications (brain cancer, neuroendocrine tumors, head and neck cancer, non-small cell lung cancer, and pancreatic cancer) expected to start in 2025. We see this as a promising approach, also as the company more clearly evaluates the theranostics approach (uTREAT and UTRACE) with this approach. As the broad therapeutic potential of targeting uPAR is one of Curasight's key competitive advantages, it makes sense to evaluate uTREAT in several indications in one trial (basket) to maximize value. Still, the next step after this trial will likely be dependent on a partner.

In relation to the announced strategy, Curasight also announced its intention to raise up to DKK51.2m in a rights issue, which was later canceled due to low interest (in part since the share price fell below the subscription price). The company mentions in its report that it expects "to be able to announce additional funding to the market soon with the effort to accelerate our clinical pipeline and continue to ensure value creation for our shareholders and at the same time contribute meaningfully to cancer treatment for patients in need."). We will return more to the uTREAT program but would like to learn more about the financing solution first.

In the report, the company mentions that it expects to start the phase IIb trial with uTRACE in prostate cancer in H1 2024 (it has already been approved) and receive a milestone payment from Curium in relation to the 1st treated patient. We don't yet know the extent of this payment, but we would guess that it is at least on par with the payment in relation to GMP manufacturing, which should somewhat boost the company's cash position. Still, we expect the cash runway to extend into Q3, which is not far away, but we would expect an announced solution earlier. We assume a rights issue in our base case, but an amended deal with Curium or another agreement/soft funding could also be a positive solution.

In the previously announced rights issue, the company opted to raise up to DKK51.2m, and we had previously assumed a rights issue of DKK75m (at DKK12.5 per share). Following the share price development and Curasight's intended sum, we make some adjustments (assume Curasight will raise DKK50m but at a lower price (DKK6 per share). We also lower our OPEX assumptions as the company has guided that its basket study will be initiated in 2025. As a result, we adjust our base case to DKK27 (29) per share.

** Includes assumed rights issue