Context Therapeutics - Period marked by readouts and pipeline progress

Context Therapeutics’ Q322 report focused on pipeline progress, reporting interim data from two Phase II trials (advanced endometrial and ovarian cancer). Preliminary data from the former (ONA-XR+anastrozole) was encouraging, with a four-month PFS of 77.7%, superior to historical data from either drug alone, although we note that the small sample size limits our ability to draw definitive conclusions. Q322 operating performance was in line with expectations, with R&D expenses of $2.1m. We anticipate that these will rise further in Q422 following initiation of the Phase Ib/II ELONA trial in November 2022. Based on our cash burn projections, the period-end cash balance of $39.4m should be sufficient to fund operations into Q124, in line with management guidance. We view the forthcoming readout from the Phase II trial in HR+/HER2- metastatic breast cancer (mBC) as the next key catalyst for the company. We reduce our valuation slightly to $9.18/share on lower net debt.