Corvus Pharmaceuticals Q2 Earnings

Corvus Trials Continue to Impress

Commentary

We believe that Corvus had a very strong quarter. The cash position, including the increased R&D spending, is encouraging. As of now, the company has cash to get through the fourth quarter of 2026, and with continued impressive data, this date should continue to be extended. At this time, we have zero concerns about the financial position of the company.

With respect to the pipeline, soquelitinib for atopic dermatitis continues to impress. We believe that the market is viewing this as “too good to be true” due to its oral administration. At this point, it is a better option than the industry gold standards of Dupixent and Rinvoq. We do believe that dermatology is a tough area to break into due to the entrenched interests and dynamics within the space, but we believe an oral drug that is just as good, if not better, can break down those doors and get into clinics. If you understand the science and mechanism of action, it is certainly not too good to be true.

We were hoping to hear some accrual numbers on the PTCL recruiting, but that was not given. It does not concern us, but it would have been nice to know. The recruitment centers that Corvus is using are top tier which gives us the confidence that the numbers will be better than expected at this point.

In the ALPS and PTCL space, we take an interesting point of view. Both diseases lack an effective FDA-approved treatment. Soquelitinib is clearly producing impressive data in the trials thus far. This is supported by the FDA fast track status for PTCL. We believe that soquelitinib could receive early approval based on ethical grounds. Meaning that because there are no treatments for these devastating diseases, and soquelitinib is demonstrating both strong efficacy and safety, the FDA may grant early approval. Of course, this is not guaranteed, but it is a real possibility. Such an outcome would create significant value for the company.

Pipeline Update