Chemomab Therapeutics Ltd. — FY2023 Form 20-F
Reporting period: Fiscal year ended December 31, 2023; filed March 28, 2024. This is an annual report, not a standalone Q4 filing. Financial statements are prepared under U.S. GAAP and audited by Somekh Chaikin, a member firm of KPMG International, which gave an unqualified opinion.
Business context
Chemomab is a clinical-stage biotechnology company with no approved products and no product revenue. Its lead candidate, CM-101, is an antibody targeting CCL24 for fibrotic and inflammatory diseases. The principal program is a Phase 2 trial in primary sclerosing cholangitis (PSC); the company has completed enrollment and expected topline results around mid-2024. A Phase 2 systemic sclerosis (SSc) trial has FDA IND clearance but is on hold while the company focuses resources on PSC.
Financial performance and liquidity
| Metric | FY2023 | FY2022 |
|---|---|---|
| Product revenue | None | None |
| Research and development expense | $18.381 million | $16.977 million |
| General and administrative expense | $7.078 million | $11.556 million |
| Total operating expenses | $25.459 million | $28.533 million |
| Financing income, net | $1.238 million | $0.353 million |
| Net loss | $24.221 million | $27.646 million |
| Net cash used in operating activities | $23.611 million | $20.370 million |
R&D expense rose 8.3%, primarily from continued clinical-program investment. G&A fell 38.8%, reflecting lower headcount, professional fees, insurance and share-based compensation. Net loss narrowed, while operating cash use increased. Profit margins are not meaningful because the company has no revenue.
At year-end, cash and cash equivalents were $9.292 million and short-term bank deposits were $10.492 million; restricted cash was $0.076 million. Management cited approximately $19.9 million in cash, cash equivalents and deposits and estimated this would fund operations through March 31, 2025, subject to assumptions and spending variability. Accumulated deficit was $88.678 million and shareholders’ equity was $16.997 million. No conventional borrowings are shown; reported liabilities were $5.154 million, including operating lease liabilities.
Financing activities provided $3.504 million in 2023, including $2.924 million net proceeds from share issuance and $0.580 million from selling treasury shares. Issued ordinary shares increased to 284,094,700 from 232,636,700 at the prior year-end. The company expects to need additional capital; equity financing could dilute shareholders, while debt or partnerships may impose restrictions or require relinquishing rights.
Material changes, outlook and risks
- CM-101 received FDA Fast Track designation for PSC in November 2023. FDA and EMA orphan-drug designations had been granted for PSC, SSc and idiopathic pulmonary fibrosis.
- Patient enrollment in the Phase 2 PSC trial was completed early; the expected topline readout moved forward to mid-2024 from the second half of 2024. The 68-patient study compares two CM-101 doses with placebo and includes an open-label extension.
- Management reported that the completed 23-patient Phase 2a NASH liver-fibrosis study met its safety and tolerability endpoint and showed favorable biomarker signals. These are exploratory findings, not evidence of established clinical benefit; the company noted the CM-101 group had higher baseline fibrosis, with the effect on results unknown.
- The company remains dependent on CM-101, further clinical evidence, regulatory approvals and third-party manufacturing. It has one clinical-stage candidate and no demonstrated ability to complete pivotal trials or commercialize a product.
- Management reported no material disruption to PSC trial treatment or supply from the Israel conflict as of the report date, but warned that further hostilities could affect operations, trial sites, supply chains and access to financing. War-related losses are not covered by commercial insurance.
- Nasdaq notified the company in November 2023 that its ADS bid price had been below $1 for 30 consecutive business days. The compliance period ran through May 6, 2024; the filing said compliance had not yet been regained and the company planned to seek an additional extension if needed.
- An Israeli Tax Authority VAT assessment is under dispute. The company said its appeal was rejected in October 2023, planned a district-court appeal in April 2024, and considered its recorded provision adequate based on tax-advisor guidance.
- Management concluded disclosure controls and internal control over financial reporting were effective at year-end; the filing contains no auditor attestation of internal controls because the company was an emerging growth company.
Key facts investors should verify
- Whether the mid-2024 PSC topline results were released, and the full efficacy, safety and statistical details—not only topline or selected biomarker data.
- Actual cash burn, financing activity and remaining runway after December 31, 2023, including whether additional capital was raised and its dilution or terms.
- Nasdaq bid-price compliance status and any subsequent listing notices or extensions.
- Progress and potential financial exposure in the VAT dispute, as well as other commitments, license milestones and contingent liabilities.
- The discrepancy in the filing’s MD&A summary table: it appears to show FY2022 net loss as $7.646 million, while the audited statements report $27.646 million. The audited statements are the clear comparable figure; confirm against the filed statements and XBRL data.