Context Therapeutics - Q122 progress in line with development strategy

Context Therapeutics’ Q122 results were broadly in line with recent trends as the company progresses on its development strategy. The operating loss stood at $3.4m, up from $0.8m in Q121 but in line with the Q421 figure of $3.1m. While the R&D expenses ($1.4m) were lower than our estimates, we expect these costs to go up in the coming quarters as the clinical pipeline progresses. The cash burn rate was $3.9m and the company ended Q122 with net cash of $45.7m, which we estimate to be sufficient to fund operations into 2024, based on our projected FY22e and FY23e burn rates of $13.7m and $23.7m, respectively. We see the upcoming ASCO presentation on ONA-XR monotherapy data from the ongoing Phase II study in granulosa cell tumor (GCT) of the ovary as a potential catalyst alongside anticipated read-outs from the other three clinical programs in 2022. Our valuation is largely unchanged at $133.5m ($8.36/share).