NASDAQ$CRVO

Diffusion Pharmaceuticals Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported financial results for 2020 and provided a business update.

Diffusion Pharmaceuticals reported its 2020 financial results, highlighting a transformational year with a strengthened management team, advancement of its TSC development, and enhanced financial stability through multiple offerings.

  • Strengthened management team with key appointments.
  • Advanced development of trans sodium crocetinate (TSC) with a Phase 1b trial in COVID-19 patients.
  • Initiated three oxygenation studies to explore the relationship between TSC exposure and oxygenation levels.
  • Enhanced financial stability with $18.5 million in cash and cash equivalents as of December 31, 2020, and additional proceeds received in Q1 2021.

Headline financials

EPS (adj)

-$3.00

Previous: $12.50-124.0%
Net Income

-$14.2M

Previous: -$3.75M-278.5%
Operating Income

-$15.8M

Previous: -$2.96M-433.8%
Cash & Equivalents

$18.5M

Previous: $14.2M+30.5%
Total Assets

$27.7M

Previous: $24.1M+15.0%
Stock-Based Comp

$152K

Previous: $130K+16.6%

Revenue & EPS history

CervoMed · Revenue · Quarterly

$0

Q1 2026-100%vs Q1 2025
Beat estimate in 6 of 9 quarters(67%)
ActualEstimate

Forward guidance

The company intends to undertake a prospective exploration of the relationship between the level of TSC exposure (dose) and response (change in oxygenation) by conducting three short-term clinical trials in the United States during 2021.

Tailwinds

  • Evaluate the effects of TSC on peripheral tissue oxygenation using a transcutaneous oxygen monitoring (“TCOM”) device.
  • Evaluate the effects of TSC on maximal oxygen consumption (VO2), and partial pressure of blood oxygen (PaO2), in normal healthy volunteers exposed to conditions that induce hypoxia.
  • Evaluate the effects of TSC on the diffusion of carbon monoxide through the lungs (“DLCO”) in patients with previously diagnosed interstitial lung disease who have a baseline DLCO test result that is abnormal.
  • Outcomes from one or each of these Oxygenation Trials will inform the company’s go-forward TSC clinical development path, focusing on the demonstration of clinical and therapeutic benefits of TSC in relevant patient populations across the hypoxia continuum.
  • Assuming success in one or more of the three Oxygenation Trials, the Company expects to identify and announce the specific, hypoxia-related indication it will target, in the fourth quarter of 2021.

Headwinds

  • The Company’s ability to design, initiate, enroll, execute, and complete its ongoing and planned studies evaluating TSC
  • General economic, political, business, industry, and market conditions, including the ongoing COVID-19 pandemic
  • Risk factors in the Company’s filings most recent Annual Report on Form 10-K and other filings with the SEC
  • Uncertainty of future events or outcomes
  • The Company’s actual results could differ materially from those expressed or implied in any forward-looking statement

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.4%

Avg return

Earnings day

+177.7%

Avg return

5 days after

-10.0%

Avg return

30 days after

31%

20 / 65 earnings

Positive

+39.3%

Q1 2020

Best reaction

-27.6%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.5%
Q4 2025+5.1%-6.7%-7.4%
Q3 2025-0.3%+11.0%+25.3%
Q2 2025+5.5%+3.2%+12.5%
Q1 2025+0.0%-4.1%-17.3%
Q4 2024+3.2%+57.9%+8.3%
Q3 2024-7.6%-11.3%-84.1%
Q2 2024+33.0%+61.9%+39.3%
Q1 2024-1.4%-20.1%-23.0%
Q4 2023-4.9%-12.0%+3.7%
Q3 2023-2.6%+0.2%-10.6%
Q2 2023-1.1%+9.5%+10.4%
Q1 2023-5.4%-1.7%-11.3%
Q4 2022-8.7%-12.7%-27.1%
Q3 2022+21.4%+22.0%+28.6%
Q2 2022-2.0%-1.4%-7.1%
Q1 2022+18.6%+25.5%+25.5%
Q4 2021-3.7%+0.0%-43.0%
Q3 2021-6.7%-4.4%-15.6%
Q2 2021-7.0%-14.0%-3.5%
Q1 2021+0.0%+6832.2%+13.2%
Q4 2020+4.9%+4.9%-99.1%
Q3 2020-10.1%-20.3%-6.3%
Q2 2020-0.9%-1.8%-22.7%
Q1 2020+39.3%+121.3%+77.0%
Q4 2019-8.8%-17.6%+17.6%
Q3 2019-27.6%-69.7%-25.0%
Q2 2019-0.9%-3.7%-10.6%
Q1 2019-4.9%-3.8%-29.6%
Q4 2018+3.8%-4.3%-33.6%
Q3 2018+0.0%-12.1%-41.8%
Q2 2018+2.8%+13.9%+11.1%
Q4 2017-3.6%-11.3%-1.9%
Q1 2018-3.6%+1.8%+1.8%
Q3 2017-3.6%-1.5%+3.6%
Q2 2017-7.7%+0.0%+12.5%
Q4 2016-0.6%+3.1%-15.8%
Q1 2017-0.6%+3.1%-15.8%
Q3 2016-3.8%-4.8%-40.0%
Q2 2016+0.0%+0.0%-90.0%
Q1 2016+11.1%
Q4 2015-6.4%
Q3 2015-9.1%
Q2 2015+1.2%
Q1 2015-2.0%
Q4 2014-7.1%
Q3 2014-1.1%
Q2 2014+4.5%
Q1 2014-3.2%
Q4 2013+0.0%
Q3 2013+0.0%
Q2 2013+0.0%
Q1 2013+0.0%
Q4 2012+18.8%
Q3 2012+4.8%
Q2 2012-2.6%
Q1 2012+0.0%
Q4 2011+8.0%
Q3 2011-11.5%
Q2 2011+7.1%
Q1 2011+5.5%
Q4 2010+1.6%
Q3 2010+19.0%
Q2 2010-12.0%
Q1 2010+0.0%

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