Context Therapeutics - Anticipating a catalyst rich Q422

Context Therapeutics’ Q222 results provided an update on the company’s operating performance and pipeline. Operating losses of $4.0m, increased from $3.4m in Q122, largely due to the $500k milestone payment to Integral Molecular for its Claudin 6 program. R&D expenses were in line with the previous quarters ($1.5m) but we expect them to increase in H222 as the company progresses its clinical pipeline. Operating cash burn rate of $2.8m resulted in Q222 net cash of $42.9m, which we estimate to fund operations through Q423 (based on our projected FY22e and FY23e burn rates of $17.6m and $33.2m, respectively). The fourth quarter is anticipated to be catalyst rich, with three of the four ongoing clinical readouts in Q422 (earlier mid-2022) and the commencement of the combination trial with elacestrant (in Q4). Factoring in the current net cash position, our valuation reduces to $148.2m ($9.28/share) from $151m previously.