Swedish biopharmaceutical company Cinclus Pharma reported a net loss of SEK 79 million for the second quarter, driven by elevated research and development spending tied to its pivotal Phase III trial for linaprazan glurate, a next-generation potassium-competitive acid blocker targeting severe erosive gastroesophageal reflux disease (GERD).
Operating expenses totaled SEK 96 million, with 89% allocated to R&D, primarily funding the HEEALING1 study. The company ended the quarter with SEK 388 million in cash and cash equivalents, following a SEK 88 million quarterly cash outflow. Cash runway is projected to extend into the third quarter of 2027, covering remaining HEEALING1 costs and preparatory work for the follow-on HEEALING2 trial.
Cinclus completed enrollment of 523 patients in HEEALING1 across eight European countries in early July, exceeding the protocol target of 501 participants. The final patient visit is expected in September or October, with top-line results scheduled for the fourth quarter of 2026. The trial evaluates linaprazan glurate’s efficacy in healing severe GERD (LA grades C and D), a market estimated at 10 million patients in the U.S. and Europe.
CEO Christer Ahlberg described the drug as offering "sustained around-the-clock acid control" distinct from existing proton pump inhibitors and first-generation PCABs. Phase II data showed a 55-percentage-point improvement in healing rates versus PPIs after four weeks, while competitors have reported healing rates between 83% and 91.7% in similar indications. Cinclus aims for a 96% healing rate in its Phase III program.
The company’s cash position includes SEK 16.3 million in financial income, primarily from revaluations of structured financing arrangements under its Claret facility. A EUR 30 million upfront payment from partner Zentiva in Q2 2025 is being amortized over the Phase III studies. The CFO noted the additional patient enrollment was completed for ethical reasons and should not materially impact the trial’s statistical signal.
Cinclus Pharma’s shares trade near the lower end of their 52-week range, down 40% year-to-date, with a market capitalization of approximately $56.25 million. Analysts maintain a "Strong Buy" consensus, though price targets vary widely from $2.62 to $7.34.
