Goldman refreshes its gold stocks outlook for 2025
Introduction & Market Context
Cantargia AB (STO:CANTA) presented its Q2 2025 interim report on August 21, highlighting a transformative deal with Otsuka Pharmaceuticals for its CAN10 asset, alongside mixed clinical results for its lead candidate nadunolimab. The biotech company’s stock has shown significant volatility, gaining 85% over the past six months despite a 4.33% decline following the earnings call. Currently trading at 2.64, the stock remains well below its 52-week high of 4.78.
The quarter was marked by strategic repositioning through the Otsuka partnership, which provides much-needed capital as the company’s cash position declined to 82 million SEK at quarter-end, down from 104.7 million SEK a year earlier.
Strategic Initiatives
The most significant development in Q2 was Cantargia’s agreement with Otsuka Pharmaceuticals, which acquired CAN10 for an upfront payment of $33 million plus potential milestone payments of $580 million and double-digit tiered royalties on future sales. The deal, expected to close in Q3 2025, represents a total potential value of $613 million.
As shown in the following transaction details:
The transaction is structured as an Asset Purchase Agreement, with Otsuka acquiring global development, manufacturing, and commercialization rights to CAN10 and 3G5, a pre-clinical IL1RAP targeting antibody. This deal aligns with Otsuka’s strategic expansion into immunology and autoimmune diseases, following previous acquisitions including Visterra (2018), Jnana (2024), and HBM7020 from Harbour BioMed (2025).
CAN10 represents a significant opportunity in blocking IL-1 family signaling across multiple therapeutic areas:
First-in-human studies for CAN10 demonstrated promising results with full receptor occupancy, IL-1 family cytokine blockade, and no safety concerns:
Interim CEO Damian Marron highlighted the strategic value of the deal during the earnings call, stating, "CAN10 provides a unique opportunity to block IL-one superfamily signaling across multiple diseases."
Clinical & Regulatory Updates
Cantargia reported preliminary results from its TRIFOUR phase 2 study in triple-negative breast cancer (TNBC), which showed no difference in overall response rate between nadunolimab in combination with chemotherapy versus chemotherapy alone. The company noted that both arms reported somewhat higher response rates than historical benchmarks for first- to third-line treated patients (approximately 30%).
Despite these mixed efficacy results, the company emphasized that safety data from this first controlled study supports development across indications, with no clear signal of added toxicity when adding nadunolimab to chemotherapy.
In a positive regulatory development, the U.S. FDA granted Fast Track Designation for nadunolimab in the treatment of patients with metastatic pancreatic ductal adenocarcinoma (PDAC) with high IL1RAP expression levels:
This designation reflects the high unmet medical need in metastatic PDAC and facilitates further development through more frequent FDA interactions and eligibility for Accelerated Approval and Priority Review.
Leadership Changes
Cantargia announced the appointment of Dr. Hilde H. Steineger as its new CEO, effective September 1, 2025. Dr. Steineger brings extensive experience as a biotech executive with a proven track record in financial analysis, venture capital, and business development:
As co-founder and Chief Operating Officer of NorthSea Therapeutics since 2017, as well as CEO of Staten Biotechnology where she led a $480 million deal with Novo Nordisk, Dr. Steineger’s experience in securing major pharmaceutical partnerships aligns well with Cantargia’s current strategic direction. Current Interim CEO Damian Marron will continue as a member of Cantargia’s Board.
Financial Performance
Cantargia’s financial position shows a mixed picture, with reduced R&D expenses but declining cash reserves. Operating expenses for Q2 2025 decreased to 34.7 million SEK for R&D (down from 39.8 million SEK in Q2 2024), while administrative expenses increased slightly to 4.8 million SEK (up from 4.0 million SEK):
The company’s cash position has continued to decline, with available funds at 81.9 million SEK as of June 30, 2025, compared to 104.7 million SEK a year earlier:
Operating cash outflow increased to 44.1 million SEK in Q2 2025 from 37.2 million SEK in Q2 2024. The company has secured a short-term loan facility of 50 million SEK, with plans to repay 25 million SEK using proceeds from the Otsuka deal.
Forward-Looking Statements
Cantargia outlined several key milestones expected throughout 2025, with the Otsuka transaction closing anticipated in Q3 representing the most significant near-term catalyst:
For nadunolimab, the company expects overall survival data from the TRIFOUR study in Q4 2025. Additionally, a study in acute myeloid leukemia (AML) has started in collaboration with the Department of Defense and MD Anderson Cancer Center.
The company anticipates recognizing revenue from the Otsuka deal in Q3 2025, which should significantly improve its financial position. With multiple clinical readouts and potential milestone payments on the horizon, Cantargia expects "extensive news flow" throughout the remainder of 2025, which could provide catalysts for the stock that has shown high volatility but remains 45% below its 52-week high.
Full presentation:
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