NASDAQ$ZNTL

Zentalis Pharmaceuticals Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Zentalis reported financial results and provided operational updates

Zentalis Pharmaceuticals reported a cash balance of $516.6 million as of September 30, 2023, projecting a cash runway into 2026. The company is focused on advancing azenosertib, with plans to submit the first NDA in a gynecologic malignancy in 2026. Updated data from the azenosertib monotherapy study showed a 37% ORR and mPFS of 6.5 months in heavily pretreated ovarian and uterine serous carcinoma patients.

  • Azenosertib monotherapy program showed continued anti-tumor activity with intermittent dosing, with a 37% ORR and mPFS of 6.5 months in platinum resistant or refractory ovarian cancer and uterine serous carcinoma patients.
  • Azenosertib development strategy is on track to submit its first New Drug Application (NDA) for azenosertib in a gynecologic malignancy in 2026.
  • The company plans to evaluate azenosertib in platinum sensitive ovarian cancer (PSOC) in the first-line (1L) maintenance setting in the clinic.
  • Mark Lackner, Ph.D., will succeed co-founder, Kevin Bunker, Ph.D., as Chief Scientific Officer at the end of the year.

Headline financials

Total Revenue

$600K

No prior period
EPS (adj)

-$0.79

Previous: -$0.96+17.7%
Research And Development Expenses

$46.8M

No prior period
General And Administrative Expenses

$16M

No prior period
Capital Expenditures

-$410K

Previous: $1.66M-124.7%
Free Cash Flow

-$55.9M

Previous: -$34.9M-60.5%
Net Income

-$55.5M

Previous: -$52.1M-6.5%
Operating Income

-$62.7M

Previous: -$54.2M-15.7%
Gross Profit

$600K

No prior period
Cash & Equivalents

$517M

Previous: $422M+22.5%
Total Assets

$586M

Previous: $529M+10.7%
R&D Expense

$46.8M

No prior period
Stock-Based Comp

$13.9M

Previous: $10.3M+34.4%

Revenue & EPS history

Zentalis · Revenue · Quarterly

$600K

Q3 2023
Beat estimate in 1 of 1 quarters(100%)
ActualEstimate

Forward guidance

Zentalis anticipates several milestones in the near future, including final results from multiple Phase 1 trials and topline data from Phase 1/2 and Phase 2 trials, as well as initiating a clinical trial of azenosertib in PSOC in the 1L maintenance setting in 2025.

Tailwinds

  • Final results of Phase 1 azenosertib + chemotherapy (gemcitabine) trial in osteosarcoma (ZN-c3-003) in 1H 2024
  • Final results of Phase 1b azenosertib monotherapy trial in solid tumors (ZN-c3-001) in 2H 2024
  • Topline data from Phase 1/2 azenosertib + PARP inhibitor (niraparib) and azenosertib monotherapy trial in platinum resistant ovarian cancer in partnership with GSK (MAMMOTH, ZN-c3-006) in 2H 2024
  • Initial data from Phase 1 azenosertib + BEACON regimen (encorafenib + cetuximab) trial in BRAF mutant metastatic colorectal cancer in partnership with Pfizer (ZN-c3-016) in 2H 2024
  • Topline data from Phase 2 azenosertib monotherapy trial in platinum resistant high-grade serous ovarian cancer (DENALI, ZN-c3-005) in 1H 2025

Headwinds

  • Potential delays in clinical trials due to unforeseen events.
  • Risks associated with regulatory approval process.
  • Dependence on the success of lead product candidates.
  • Possibility of product candidates causing serious adverse side effects.
  • Inability to maintain collaborations or failure of these collaborations.

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 Q3 2023

Historical avgQ3 2023

-1.7%

Avg return

Earnings day

-2.2%

Avg return

5 days after

+2.4%

Avg return

30 days after

58%

14 / 24 earnings

Positive

+14.5%

Q1 2023

Best reaction

-43.0%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.9%-1.7%
Q4 2025+3.1%-3.7%+49.1%
Q3 2025+6.2%+0.8%+9.8%
Q1 2025-2.5%+3.3%+10.7%
Q4 2024-12.6%-15.0%-23.5%
Q3 2024-2.7%-13.9%-22.3%
Q2 2024-8.8%-12.5%-10.6%
Q1 2024+6.1%+7.0%-5.5%
Q4 2023+10.0%+8.5%+11.9%
Q3 2023-43.0%-45.0%-33.1%
Q2 2023+5.3%+11.2%-0.5%
Q1 2023+14.5%+22.8%+2.7%
Q4 2022+1.2%-2.1%-9.1%
Q3 2022-14.1%-4.3%-17.4%
Q2 2022-0.1%-7.3%-8.1%
Q1 2022-16.4%-24.7%+1.3%
Q4 2021+7.6%+5.7%-3.2%
Q3 2021+0.8%-1.0%-8.8%
Q2 2021+4.9%+7.1%+39.0%
Q1 2021-4.6%-1.3%-9.0%
Q4 2020+1.4%-0.7%+45.7%
Q3 2020-5.6%-2.1%+36.3%
Q2 2020+1.0%+7.2%-10.6%
Q1 2020+4.5%+8.2%+10.5%
Q4 2019
Q3 2019
Q2 2019
Q1 2019

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