NASDAQ$DSGN

Design Therapeutics Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Provided pipeline updates and reported first quarter 2023 financial results.

Design Therapeutics reported its first quarter 2023 financial results, highlighting progress in its GeneTAC™ small molecule pipeline. Initial data from the Phase 1 multiple-ascending dose trial of DT-216 for Friedreich Ataxia is expected in the third quarter of 2023. The company's cash and securities are expected to support operating runway through 2025.

  • Initial data from Phase 1 multiple-ascending dose trial of DT-216 for Friedreich Ataxia expected in the third quarter of 2023.
  • Progress across GeneTAC™ small molecule pipeline with IND submissions for FECD and DM1 programs on-track for the second half of 2023 and 2024, respectively.
  • Cash and securities of $315.4 million expected to support operating runway through 2025.
  • Preparing to submit a second Investigational New Drug application (IND) in the second half of this year to support development of our novel DT-168 eye drop for patients with Fuchs endothelial corneal dystrophy (FECD).

Headline financials

EPS (adj)

-$0.35

Previous: -$0.24-45.8%
Capital Expenditures

$87K

Previous: $76K+14.5%
Free Cash Flow

-$17.5M

Previous: -$11.9M-47.1%
Net Income

-$19.3M

Previous: -$13.3M-45.5%
Operating Income

-$21.7M

Previous: -$13.4M-61.9%
Cash & Equivalents

$315M

Previous: $371M-15.0%
Total Assets

$325M

Previous: $379M-14.3%
Stock-Based Comp

$3.43M

Previous: $2.36M+45.2%

Revenue & EPS history

Design Therapeutics · Revenue · Quarterly

$0

Q1 2026

Forward guidance

Design Therapeutics anticipates several milestones, including initial data from the Phase 1 MAD trial of DT-216, IND submission for DT-168 for FECD, and IND submission for the DM1 program.

Tailwinds

  • Initial data from Phase 1 MAD trial of DT-216 for FA expected in Q3 2023.
  • IND submission on-track for DT-168 for FECD in the second half of 2023.
  • IND submission on-track for DM1 Program in the second half of 2024.
  • Sufficient cash to fund operating plan through 2025.
  • Advancing preclinical characterization of lead GeneTAC™ molecules for DM1.

Headwinds

  • An unanticipated vendor issue related to the study drug vial stopper caused a short delay in product supply for DT-216.
  • Early-stage programs are subject to projections and may not yield expected results.
  • Preclinical and early-stage clinical data may not translate to later stages.
  • Clinical trial and patient enrollment are affected by many factors, which may cause delays.
  • Reliance on third parties to conduct clinical trials and preclinical studies poses risks.

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 Q1 2023

Historical avgQ1 2023

-2.2%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+3.2%

Avg return

30 days after

50%

10 / 20 earnings

Positive

+15.1%

Q4 2023

Best reaction

-71.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+3.8%-16.2%
Q4 2025+3.2%+0.7%+26.1%
Q3 2025+10.7%+10.8%+42.2%
Q2 2025-8.9%+14.5%+48.3%
Q1 2025+0.3%+10.3%+10.3%
Q4 2024+0.4%+2.5%-27.2%
Q3 2024-1.9%+16.3%+7.9%
Q1 2024+1.7%-3.0%-17.9%
Q4 2023+15.1%+50.8%+48.4%
Q3 2023+13.9%+10.4%+27.4%
Q2 2023-71.7%-72.8%-65.2%
Q1 2023-12.2%-12.6%-26.4%
Q4 2022-0.6%-8.1%-24.8%
Q3 2022-0.3%-0.8%-9.7%
Q2 2022+0.3%+13.5%+5.5%
Q1 2022-1.5%-2.4%+30.9%
Q4 2021-1.8%-0.8%-10.0%
Q3 2021+4.8%+10.7%-3.8%
Q2 2021+9.9%+7.9%+19.7%
Q1 2021-6.0%-18.0%-1.8%
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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