Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 04:30 pm ET
Thank you for standing by. This is the conference operator. Welcome to the Corvus Pharmaceuticals Second Quarter 2020 Business Update and Financial Results Webcast Conference Call. [Operator Instructions] After the presentation there will be an opportunity to ask questions. [Operator Instructions]
I would now like to turn the conference over to Zack Kubow of Pure Communications.
Thank you, operator, and good afternoon, everyone. Thanks for joining us for the Corvus Pharmaceuticals Second Quarter 2020 Business Update and Financial Results Conference Call. On the call to discuss the results and business highlights for the second quarter 2020 are Richard Miller, Chief Executive Officer; Leiv Lea, Chief Financial Officer; and Mehrdad Mobasher, Chief Medical Officer. The executive team will open the call with some prepared remarks followed by a question-and-answer period.
I would like to remind everyone that comments made by management today and answers to questions will include forward-looking statements. Forward-looking statements are based on estimates and assumptions as of today and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by those statements, including the risks and uncertainties described in Corvus' quarterly report on Form 10-Q, which was filed today and with the SEC and other filings the company makes with the SEC from time-to-time. The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.
With that, I'd like to turn the call over to Leiv Lea. Leiv?
Thank you, Zack. I will begin with a quick overview of our second quarter 2020 financials and then turn the call over to Richard for a business update.
At June 30, 2020, Corvus had cash, cash equivalents and marketable securities totaling $59.3 million, as compared to $78 million at December 31, 2019. Research and development expenses in the second quarter of 2020 totaled $7.9 million, compared to $10.6 million the same period in 2019. The decrease of $2.7 million was primarily due to a $0.5 million decrease in ciforadenant clinical trial expenses, a $1.7 million decrease in CPI-006 drug manufacturing costs, a $0.5 million decrease in CPI-818 drug manufacturing costs and a $0.8 million decrease in outside service costs. This was partially offset by a $1.1 million increase in CPI-006 clinical trial expenses.
The net loss for the second quarter of 2020 was $10.6 million, compared to a net loss of $13.0 million for the same period in 2019. Total stock compensation expense for the second quarter of 2020 was $1.4 million, compared to $1.9 million for the same period in 2019.
Looking forward, we expect net cash used in operating activities for the second half of 2020 to be between $12 million and $14 million, a reduction from $18.8 million of net cash used in operating activities in the first half of 2020. This reduction is mainly due to careful management of expenses, combined with strong prior enrollment in our clinical studies and the focus on patient monitoring and follow-up in these studies. Our