Clene posts Q3 profit on warrant liability gains

Overview

• US biopharma firm's Q3 net income reached $3.9 mln, reversing a year-ago loss

• Operating expenses rose 13% yr/yr, mainly due to NDA-related regulatory and personnel costs

• Company completed $4 mln stock offering to fund operations through mid-Q1 2027

Outlook

• Clene expects its cash resources to fund operations through mid-first qtr 2027

• Company plans to initiate Phase 3 RESTORE-ALS trial in Q2 2027

• Clene could receive $6.7 mln to $7.8 mln from warrant exercises, subject to NDA acceptance

Result Drivers

• REGULATORY AND PERSONNEL COSTS - Co said higher research and development expenses were driven by increased regulatory costs for the NDA submission and higher manufacturing and personnel expenses, including reinstated executive compensation

• OTHER INCOME - Net income benefited from a $10.3 mln swing in total other income, mainly due to changes in fair value of common stock warrant and derivative liabilities

• LOWER GRANT REVENUE - Co said lower grant revenue, which is recorded as a reduction to R&D expense, contributed to higher reported R&D costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Clene Inc is $30.00, about 695.8% above its November 3 closing price of $3.77

Reuters Recommended Reads

• Nov 3 - Beam Therapeutics posts wider than expected Q3 net loss as revenue drops

• Nov 3 - Ultragenyx Q3 revenue rises, net loss narrows

• Nov 4 - Switzerland's MoonLake Q3 net loss widens as R&D costs rise

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)