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Introduction & Market Context
Cantargia AB (STO:CANTA) presented its Q1 2025 interim report on May 13, highlighting progress across its pipeline of IL1RAP-targeting antibodies while acknowledging financial challenges ahead. The biotech company, currently valued at a market capitalization of approximately $40 million, saw its stock rise 3.75% to 1.14 SEK following the presentation, though this comes after a reported 6.02% decline following the initial earnings release.
The company’s presentation focused primarily on advancements with its lead candidate CAN10, which is being developed for inflammatory conditions, while also providing updates on Nadunolimab for oncology indications. Despite clinical progress, Cantargia faces funding constraints that may impact operations beyond 2025.
Quarterly Performance Highlights
Cantargia reported an operating loss of SEK 45.0 million for Q1 2025, compared to SEK 41.7 million in the same period last year. R&D expenses increased approximately 6% year-over-year to SEK 40.7 million (Q1 2024:SEK 38.4 million), reflecting ongoing investment in clinical programs.
As shown in the following financial summary:
The company’s available funds stood at SEK 103.9 million as of March 31, 2025, down from SEK 107.6 million a year earlier. Management acknowledged that current funding is not expected to sustain operations throughout 2025, and the board is actively pursuing transactions to strengthen Cantargia’s financial position.
The cash flow and position trend is illustrated here:
CAN10 Clinical Progress
The most significant developments during the quarter centered around CAN10, Cantargia’s antibody targeting IL1RAP (Interleukin-1 Receptor Accessory Protein). The company completed the Single Ascending Dose (SAD) phase of its first-in-human study and reported promising initial results from the Multiple Ascending Dose (MAD) phase.
The study design and current status are outlined below:
Key pharmacodynamic results demonstrated that CAN10 achieves full receptor occupancy and effectively blocks IL-1 family cytokine signaling. The data showed long-lasting effects even two weeks after the third dose in the MAD cohort, suggesting potential for less frequent dosing.
The following graphs illustrate receptor occupancy and inhibition of IL-36 induced IL-6 release:
Cantargia also presented data showing CAN10’s ability to block multiple inflammatory pathways simultaneously, differentiating it from approved treatments that target only single pathways:
Pharmacokinetic (PK) results support a quarterly (Q4W) dosing regimen, which could provide a competitive advantage in terms of patient convenience:
Strategic Initiatives
Cantargia has strategically positioned CAN10 for two key indications: Hidradenitis Suppurativa (HS) and Atopic Dermatitis (AD). The company cited market research suggesting the HS market could grow to USD 10 billion by 2030 across major markets.
For HS, Cantargia presented competitive positioning data showing how CAN10’s efficacy and dosing frequency could potentially differentiate it from existing and pipeline treatments:
The company also announced the selection of atopic dermatitis as a second indication for CAN10’s Phase 2 program, focusing specifically on patients not responding to dupilumab. The scientific rationale includes CAN10’s ability to block multiple inflammatory pathways relevant in AD:
This strategic focus is supported by non-clinical data:
Nadunolimab Development
Cantargia’s oncology candidate, Nadunolimab, also showed progress during the quarter. The company completed recruitment for its TRIFOUR study in triple-negative breast cancer (TNBC), with initial results expected by mid-2025. Additionally, the first patient was recruited in a leukemia study sponsored by the US Department of Defense and conducted by MD Anderson Cancer Center.
The company highlighted that over 300 patients have been treated with Nadunolimab to date, emphasizing its potential as a "multi-billion dollar product" across multiple indications:
Recent clinical and preclinical data suggest Nadunolimab may reduce chemotherapy-induced neuropathy while enhancing antitumor activity:
Forward-Looking Statements
Cantargia outlined an ambitious timeline of milestones for 2025, including completion of the CAN10 Phase 1 MAD study in Q2, regulatory updates in Q3, and initiation of Phase 2 studies in HS and AD by Q4. For Nadunolimab, the company expects initial TRIFOUR results in Q2.
The comprehensive milestone timeline is presented here:
Financial Analysis
Despite clinical progress, Cantargia’s financial situation remains challenging. The company’s operating loss widened to SEK 45.0 million in Q1 2025 from SEK 41.7 million in Q1 2024. This was further impacted by negative net financial items of SEK 1.9 million, compared to a positive SEK 4.7 million in the prior-year period.
Interim CEO Damian Marron expressed cautious optimism during the earnings call, stating, "We remain as confident as we can be in the current circumstances," while acknowledging the need for additional financing. Chief Medical (TASE:BLWV) Officer Morten Lind Jensen highlighted CAN10’s differentiated mechanism, noting, "Our broad mode of action is really what makes it super suitable for HS."
With current funds not expected to sustain operations throughout 2025, Cantargia faces the immediate challenge of securing additional financing while advancing its clinical programs. The company’s ability to reach key milestones, particularly the initiation of Phase 2 studies for CAN10, will likely depend on successful fundraising efforts in the coming months.
Full presentation:
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