PGEN - Earnings call transcript Q1 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to the Precigen First Quarter 2020 Business Update and Financial Results Conference Call. I will now turn the call over to Steve Harasym, Head of Investor Relations. Please go ahead.

Steven Harasym

Thank you, Operator. I am pleased to be joined today by Dr. CEO and and of Samuelson, President Strategy. Financial Sabzevari of Tom Precigen; Head Helen

Slide our X to turn Please for forward-looking statement.

During forward-looking statements. results or forward-looking will and uncertainties make cautioned to to cause are we on our actual could and based statements presentation today's that most are differ risks factors forward-looking expectations statements. a subject discussion outcomes that Investors call, harbor are current various SEC materially in this safe contained for Please statement risk the Precigen's the our as read by more as indicated of recent and those filings, these in well uncertainties. contained complete risks from

I will over to turn call Dr. Sabzevari. the now

Helen Sabzevari

Since has call all that Thank you, and hope changed. Steve. in our finds I March, so last we spoke and much their this healthy. listeners families safe

moment We perspectives: all economic, change living a are through has caused profound psychologic. from that sociologic and scientific, historic

working the safety At Our progress world are the making in employees our of the overcome together utmost Precigen, of is nation important. to the COVID-XX. of health and challenge and

of staggered Despite Our our time transitioned continue programs safety to and goal seamlessly benefiting measures, working ultimate all in of including distancing, advance and scientists personnel, patients. these are social challenging a essential times, have research the wearing appropriate equipment. corporate and lab remotely personal to employees protective practicing work we with the

adherence our Slide unprecedented during outlined as reflect we changed on the a proud clinic review drugs made progress XX the core to in passionate like I first-in-class not made operating lead our the X. Even bringing to headway to in principles, the our I has what incredibly team such am to months. concept I from Before X is time, quarter, this in and last privileged on team. would last has

company because that out and way important this stakeholders evolve. year we value strongly continue must shareholders laid goals I our the earlier our science advance and our we to to most our important deliver to can is toward believe

cell to therapy improving through this report key work previously to more pleased detailed track a on on our we timeline. of moment. realizing a As our largely by a become just portfolio, care I clinical market the remain and will our innovative I'm with product that at disclosed update our gene we point, program mission player provide clinical in in patient

last wants also track underscore team should resources, to we we goals which financial well into preserving continue to on operate us XXXX allow Our our achieve to are call, that laid XXXX. out the while on to

a health. Exemplar. and both improving made organization streamlining We assets; quarter several focus of of nonhealth operations progress considerable have to this our on Trans Ova included: at the the in Key completing initiatives sale Genetics

substantially Titan, they COVID-XX from and will the later MBP are call. in net capital I this adverse impact pandemic; So cash year; at in the discuss which burn significant contributors barring of reducing detail greater

lower costs the of first Precigen closed spending, These million streamlined certain attributable of of the were our which decrease the which million, to numbers includes first for bioengineering XXXX. of of $XX In approximately corporate corporate million This functions, the noncore to $XX resulted sale additional quarter. focus narrower assets, of the savings the company. cost fit which first was unallocated significantly the in versus plus was which cost segment EBITDA quarter quarter $XX primarily XXXX, of exclude in

care unify to you businesses Another as one priority for Precigen, Slide see on us our is health become top to can X.

efficiently. streamline major workflows resources, maximize have strides more collaboration here, and to We us allowing deploy made

Specifically, to levels. we businesses integrate health our company have steps corporate synergies to achieve at the and taken both

health increased businesses. across redundancies, our corporate eliminated and communication reduced We have also streamlined our infrastructure, costs

include Triple-Gene. In Precigen and Precigen addition Precigen to these ActoBio, Precigen, Exemplar

this Externally, one is believe we We of programs the our on efforts recently a potential on respective focused of has our this in pipeline that subsidiaries value. information these which program evidenced precigen.com, each place. updated website, integration that consolidates have closer hope the through health informative. find We most you

X, it nonhealth in progress our to Consistent both allocate are report that assets. with best spending. pleased our strategy creates nonhealth commitment care On to to Slide a that our our to we will for I'm our our in businesses. reduce goal overall you reduce allocation note making objective manner resources capital to value, is

partner or additional continue while business. at measures the options efficiency implement to Titan sell We exploring MBP the to

pandemic for ongoing business. especially current sector challenging the state are COVID-XX of the operation prospect and this The the of energy and

capital require capital secure progressing by this been significant and to efforts nonhealth such hampered that has platform expect We events. will world

made have to the MBP difficult maintain necessary while minimize potential operation value the Titan we of expense a the of facility operations result, a our and for brighter to but platform suspend decision As economic continuing the in situation. the

MBP significantly we workforce costs. our reduce Specifically, steps have taken cut Titan to and to operating

technology. While preservation thank to of agreement, innovative CEO Platform. Bioconversion by with David mutual our MBP team I entire the company. also time, to the announce no Titan want MBP want their Methane of Titan, for advancing and I is at in the same that intellectual property Witte, longer prioritizing the contribution

will to options We continue evaluate technology. this for

to upswing the this of achieving impact and the business financial commercial efficiency. Genetics operational highlight Another was performance quarter at combined Trans dairy the in Ova expanding due

pleased goals track our clinical on update remain I X. programs and our XXXX. that meet readouts Slide in for milestones am to reaffirm other we previously health to to now on Turning announced

investigational significant the due investigational recognize nearly and burden infections announced as and the neck, a to the solid a immunotherapy, activate tumors. PRGN-XXXX, application to 'XX, head mass the adenovector to represent low its payload nonexistent a for HPV-positive and to and anal Preclinical On all and April with human the cleared cervical, combination and in cancers. in PRGN-XXXX X. platform, immune platform has in potent Turning target design immune Precigen health to neck that has high-risk demonstrated to administration cancers prevalent large Globally, AdenoVerse a very cancers. gorilla leverages vaginal with Phase activity robust X UltraVector of in antigen-specific PRGN-XXXX utilizing capacity first-in-class, HPV of I/II population. such antigen X% in head repeat AdenoVerse models HPV indications HPV-positive to monotherapy for as of response system trial cancer. and the HPV we FDA initiate combination new humanized optimize designed drug Slide and antitumor a ability off-the-shelf cause testing

in to of this Phase and PRGN-XXXX to by PRGN-XXXX the of dose to research combination of an is through portion patients MXXXX now study fusion monotherapy with a protein cancers. safety will X. follow MXXXX of determine or under followed evaluate The The study Phase stage this or of in portion bifunctional Please turn metastatic with escalation diagnosed associated administrated the newly II recurrent X as dose as X+X cooperative cancer. evaluation patients X investigational and in Slide a recommended will development the agreement monotherapy with HPV evaluate CRADA. combination or safety or PRGN-XXXX a and HPV-XX Phase oropharyngeal PRGN-XXXX II of development I positive this

by Strauss the Within cost the Julius the clinical to conducted the at will rapidly I/II laboratory CRADA Dr. allowed PRGN-XXXX of Dr. James at advance This Jeffrey and Institute. and trial be will Gulley. led The Dr. to Phase clinic. has National NCI and be effectively Schlom Precigen Cancer

arm ovarian Slide initial of I this Phase for to arm during in IP trial. to of data level of clinical of the completed dosing X readouts IP are our of from the We we the year. of announce I'm Turning X. track PRGN-XXXX second reaffirm trial happy that this we cancer on that dose half have

to We are very ability UltraCAR-T. encouraged XXX% we success. to continue our successfully manufacture by have date, to manufacturing And

Cancer that Today, that hospital. of nor it lifted to to on important to part. recruiting to was medical the PRGN-XXXX we Hutchinson was patients again. related part non-COVID-XX has this are Fred pleased trials It pause trial centers' infection. clinical is the first COVID-XX placed related the of note I have prioritization safety a at are the study COVID-XX Center amongst neither to and actively I'm temporary Phase any due announce issues

and of is manufacturing on seen we administration. depletion to our UltraCAR-T large ex the this manufacturing advantages treatment the transfer. to UltraCAR-T facility. of not manufacturing for Instead, allowing As UltraCAR-T after patients to prior the liquid uses rapid patients do long does lack at centralized in CAR-T, lentivirus require not expansion XX, use the and hospital, gene platform, vivo treatment the Unlike nonviral, believe in of due cells characteristics part Slide conventional day

an as important competitive this advantage view We a world. COVID-XX post in

dose concurrently not interruption. IND has non-lymphodepletion in and XX. and Now date continues was related FDA The to has by both initially COVID-XX to us at allowed patients level. the in the amended moving structured set arms. experienced to to arm has PRGN-XXXX lymphodepletion dose the arm any Slide The followed to dose trial The been enroll trial patients

to and enrolling the are in non-lymphodepletion We track both We XXX% them. to look lymphodepletion in we remain the and readouts and arms excited compare XXXX. on initial to patients half data continue second at manufacturing have kinetics And success. of for are currently deflation date,

the to early forward I when endpoint Oragenics. on on to did Slide would our neck mucositis the receiving I mucositis announced results of compared and AGXXX significance the development prevent primary a with of radiation top demonstrate recently back becomes oral patients to trial in from reviewing Oragenics of move a which hearing placebo. oral statistical line to the AGXXX, not of rest We II portfolio as available. go cancer to chemo will that head ActoBio, now like XX. durations to look the of is Phase on company clinical partner severe

remains third to Phase announce study as AGXXX, in vivo for clinical Turning of earlier XXXX. quarter cohort now Precigen to track first investor ex the interim on IB/IIA update, noted data in of the

of currently exogenous for and antigen-specific first-in-class, no that diet a combined through approved prevention, is insulin. or diabetes, managed AGXXX reversal investigational with disease-modifying X treatment a is disease-modifying, delay with disease lifestyle immunotherapy type modification

AGXXX the randomization part a last remaining the temporary issues is cohort to of plus do Phase caution, study-related background against abundance is this patients We XX study, to implemented the the of XX temporary evolving neither COVID-XX of out study-related have due is infection. IIA of any the in We which on study teplizumab antibody, any nor age. combination path to immunosuppressive given based This decided of for of teplizumab to years pandemic. anti-CDX nature COVID-XX of the

failure heart gene by for our portfolio patients, is Another majority-owned exciting Triple-Gene which in asset novel a subsidiary. Precigen developed INXN-XXXX, being is therapy our

complete Phase end to by expect top line I of the XXXX. provide trial data the and We

financial will I Samuelson to call update. Tom turn give over the to now

Tom Samuelson

Thank to you, good the everyone on Helen, and afternoon call.

on based As in with of incurred the capital, requirements additional not million aggregate and $XX we but quarterly last $XX substantial XXXX the our only bioengineering These sale in stock. assets our million by also previously in XXXX. $XX.X our significantly estimated Precigen transactions, million, closed common an conference reported expenditures call, in legacy provided reduced

of Please QX operations, expenditures. is recall QX fully are corporate totaled and EBITDA, in of component to million approximately segment is $XX SEC defined million Among million, approximately individual a net this and cash our expenses, operating XXXX our and XX% which $XX XXXX XX%, largely large which our and reduction continuing that redundancies filings, fees. sum respectively. the was corporate $X.X generally EBITDA of segments, unallocated costs, or segment eliminating allocated losses reduction decreasing A plus not professional million capital or achieved expenses in by $X

our and therein as in comparable on segment planned. and oncology we preclinical EBITDA continued maintained multitude quarter-over-quarter advancement programs of Despite a clinical immunology,

required expenditure only to $X.X reducing expenditures, of during first are beforehand, which XXXX the Helen we IP we those towards quarter decision preserve and As dramatically to the technology. decrease XXXX. the to MBP million these ultimately and Titan, quarter, second million alluded difficult to the required significantly In $XX.X made already in

million quarter same of Genetics, XXXX. Ova Therapeutics and we EBITDA grew cash, million. March last to equivalents anticipate last XXXX, into and by XX, the million, Trans $X.X On $XXX by cash over approximately approximately improved investments while EBITDA these segment short-term year. respectively, Exemplar $X.X by revenues to million also well and million, At had funds quarter-over-quarter $X $XX.X at increased XX% Segment ActoBio and

during improvements QX our we the results. that pandemic may the respect COVID-XX see closing, impact enacted in quarter, as the expect our an is advise like for operations. impact every our to and note company. of ongoing pandemic on thus, would developments even that further greater We continue many organization the also first with In to operational we today, I case the these effects to adverse have to of effect you will

I call Helen would turn concluding the for like to remarks. now to over

Helen Sabzevari

you, Thank Tom.

confidence today, achieve in our we innovative Precigen's confirm call numerous sets care's portfolio. on XXXX, to I and During you expect closing In can transform as report focused data Slide the XX. new to and with potential want our health see milestones, our landscape to

plans challenges on current presented our our we and deliver continue to Despite XXXX. clinical confirm by financial COVID-XX, for guidance the

to committed and our decision to reaching potentially transparent go prudent, in process of bringing disciplined data-driven our company achieve our are financially We fiscally no-go in the transformative by patients. a to managing mission options treatment early development manner a

that, now open for begin. With Operator, the we questions. will line please

Operator

call would I to back like over now turn to the Harasym. Steve

Steven Harasym

Thank you, Kevin.

will assemble today Tom, you the Thank Q&A us session CFO, our to be you. it Rick like turn speak; for our operator, Sterling. Helen; Joining just and back I'd who now. queue will who our turn to

Operator

[Operator Instructions].

comes Our Jason Securities. first from Butler question JMP from

Jason Butler

or the study think preclinically do on of combination the Maybe all this just combination you about for potential the off combinations? starting with for And signals and monotherapy what we about alpha efficacy think should you combination? on progress. other versus the in Can [indiscernible] you've Congrats XXXX. the with potential seen efficacy discuss how how

Helen Sabzevari

cells. the Thank in efficiency mass of and the studies Jason. what with that tumors targets efficacy TGF-beta, reason this a number models you basically humanized a The reduction And of And the in actually encouraging well the of activations evaluated also the the in quite also HPV TGF-beta of number have add combinations actually that indications of and Excellent in we very question. have the PRGN-XXXX the enhancement HPV-positive with actually of immune at it effect. been collaboration Actually, currently ones, tumors different head combination, inhibitors is much, like seen of we are will molecule the which of data the an reduction of of course. bifunctional functional. the NCI, been -- or pathway, we in the number done importance from into been that has NCI have and additional tumor indications, have and the a that as positive. we in that checkpoint And for -- neck as stabilization not

are is especially One think as PRGN-XXXX -- it's bit in -- times at And field. the to that this that a our in I and is some immunotherapy antigen are the any unique using way combination, very special -- exist, with to us unique Phase UltraVector, of window very as to monotherapy, molecules between molecule of used our study. as this and We positive, of excitement of designs -- design And forward. and that product have would that studies, of one allows move important opportunity very in NCI, a was done in the both -- off-the-shelf but with well very we a number larger and portfolio PRGN-XXXX, we at the exciting, treatment. II the is HPV table. as forward bifunctional exciting of receiving our also be the believe dose clinic that that it's we drug are this in that's our not because AdenoVerse believe the we have especially very And gorilla we we in time patients not designed, seen a indications going gives it design are own a be of also it the the that and only in the makes platform, molecule to have but our looking in current that may -- which us mentioned

Jason Butler

maybe this represents rate. question, Or a different XXXX us number I in it far That's guess, how you're XXX% manufacturing again sense you great, you've total setting? Can of put manufacturing to you XXXX what path you a and now processes or Helen. that for both a of the along this My second just success way, sustainable programs, confidence that reiterated successfully the maintaining in is having rate are to very success completed? multicenter patients high give

Helen Sabzevari

Right. Excellent.

PRGN-XXXX point, shown the for that have the Moffitt very tumors and -- patients important for despite of for Center. the be of First have solid was the different Fred this facilities. of centers, manufacturing of Hutchinson at that centers. This demonstrated this achieved done in in PRGN-XXXX that either they and tumors, AML can manufacturing number of XXX% liquid all, at we these And Cancer duplicated is sizes a us at

have So -- we both are call very as this confident, and now we seen are we really reported also in excited. PRGN-XXXX, we for

concurrently the first we We point. cohort the comparison. the have finished a have we but finished the in second we lymphodepletion in do and cohort also have lymphodepletion now non-lymphodepletion. and And dose the as this received can we cohort -- at of I'm mentioned, also the sorry, And allowance, second do in

between you these can number are of all imagine, are a studies X+X. of So the this, there patients, as

in And so of us to manufacturing this not have confidence we point, the trials, trial. of for the have, patients and allows any have this dosed number up we either for which had failures,

Jason Butler

Okay, then one I great. that -- in the but in or think place savings the you quantify last before, XXXX? I capture missed the sorry for if Rick. reductions if just with from in Titan a Tom MBP squeeze you you can this can Tom's comments I'm you're cost for can from And

Tom Samuelson

Yes.

the for question, Jason. So thanks

So million. MBP XXXX. was What you on reiterating can tell just was number XXXX that EBITDA we're the giving QX $XX exact not an And approximately guidance for I million. is, the for specific $X segment XXXX

now. So to conclusions of allow we sort you the draw there for would from

Helen Sabzevari

have reduced, And as that one the significantly basically cost I Jason, stress, Titan. thing can we maybe, MBP the

next in be it as Q would the comes. this So reflected

Operator

Swayampakula. from comes question next Our

Swayampakula Ramakanth

This quick is questions. couple of HCW. RK A from

are what of additional patients us the the The study. about proposing changes you both on have some talked you in changes first PRGN-XXXX dosing of arms? -- you outside tell you Can one, concurrent the

Helen Sabzevari

IND and safety the look as had PRGN-XXXX, after to can we been non-lymphodepleted well were will regard In start finish the Thank have I'm at to And the success, with between basically cohort discussed you, the that results arms. allows there's us manufacturing patients, the showing basically a was going original as excited first by only manufacturing lymphodepletion that not obviously rapidly we ability And that XXX% it arm. would arms Got RK. would to, non-lymphodepleted X also enroll design, start -- move we was by with really only And safety. get and the manufacturing going the we and staggered ability with which allowed have amendment the as imagine, the now between can non-lymphodepletion, the not you that non-lymphodepletion the FDA, we as obviously the then we well and arm, the through time to it. the concurrently arm with seen as -- of FDA. lymphodepletion. they but there long the more comparison to

Swayampakula Ramakanth

will this as so commercialize forward? well completing need you bit a going or it out plan quarter. trying data interim collaborators you're There's of it to And next you you the that finish of how be to What this quarters diabetes to terms third program quite to Two of program late-stage expecting focus Trying we questions. as take Okay. in of little see? X your data where of up sort a you Can trying on also, across in bit figure coming some the to do I'm -- program can some of the couple the it? programs. kind do in data kind will yourselves of to early

Helen Sabzevari

Sure. Thank you.

IIa the the monotherapy adolescent to the readout that compares regard Phase a combination of that further itself in in adult received. on from then, have -- some Ia would safety the in X the of drug. interim in both So they and data, course, course, And a -- arms of first on of And be we main their will and the with also patients especially anti-CDX. the AGXXX, in reporting that will as in the be months Phase X molecules and by we of observations are a there obviously, of advance pharmacokinetics AGXXX,

that exciting, X as think as basically which molecule, this also very therapy, disease, the Really and as on X XX insulin we platform diabetes readout to know, and important. be the in the a combination allow the don't us readout where diet the eventually. as As see These you And the -- And except as from for IL-XX well would -- delivers be the would this the go. I be type decisions have. we of at eventually, well onset there be it able months, patients there's insulin is then no based anti-CDX. will monotherapy will with made a on months that, then in

address As for would far strategy as the this in portfolio, I general. the

our possibilities evaluation continuous part a efficiency with look all concept our strategic these And of And of of front of of is portfolio all course, the a is therefore, mind. that. strategy us. Our partnerships in we in big at of

evaluated we this So on, these across and as move things is to one be our portfolio. will specific is this program, really not

Operator

any not I'm showing And this questions further at time.

Helen Sabzevari

Great. you. Thank

Operator

Ladies this presentation. does gentlemen, today's and conclude

wonderful a You and day. have disconnect, may now

Precigen (PGEN) 6 May 202020 Q1 Earnings call transcript