ABUS - Earnings call transcript Q2 2018 | Arbutus Biopharma Corporation

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Arbutus Biopharma Second Quarter 2018 Financial Results and Corporate Update Conference Call. [Operator Instructions] As a reminder this conference call is being recorded. I'll now turn the call over to Pam Murphy, who has recently joined the Arbutus team as their IR Consultant.

You may begin.

Pam Murphy

Thank you, operator. and joining everyone afternoon good thanks us. for And me today Dr. are With CEO; Arbutus' Murray, Dr. Mark Chief Mike Officer; Sofia, Scientific Arbutus' Dr. Arbutus' Symonds, Bill Chief Development Officer; Dave. Financial Chief Accounting Arbutus' Officer; VandenEnden, Koert Hastings, Arbutus' Officer. and, Chief

along regulatory ARB-XXXX potential technologies of of today, expected revenues are and potential our statements let approval potential you me chronic potential Before clinical and accure regarding for timing and delivery AB-XXX, reported forward-looking made development HBV, we call that efficacy and AB-XXX licensing the current of partnership, of for the and development including begin, cash a plan clinical runway, some filings expected with results, the during our agreements. the developing remind our development timing for statements Genevant from of statements and plan and

involve are risks current All our cause description latest documents found results and assumptions, certain control disclosure our of and of risks these be A beyond materially. can releases. uncertainties statements our these to differ actual in can press that and

In to made update the introductory addition, to now I'd Mark any any to call like remarks. obligation undertake this call. statements for during forward-looking his does not Arbutus pass

Mark Murray

us And to you Pam. for the everyone Thanks, today. call joining thank on

AB-XXX Last the we our of of inhibitor lifecycle, and have a develop are the most agents a Our XA/XB mission we hepatitis agents, surface a B data pipeline using of multiple HPV Phase agents capsid for is to of generation therapeutic clinical orally is in developed initiated cure HPV month, To the end, duration. that chronic of target expression. effective agent. important combination replication that proprietary which therapeutic active defined treatment second HPV our antigen trial which

Phase regulatory submission shortly XA/XB AB-XXX. our of file the will RNA We destabilizer agent clinical start to study our

results XXXX. the monotherapy these studies patient of end study ever from combine of in oral first mid-XXXX these and by expect the we both to expect combination by We

year closely resources the strategic completed our we business capital HPV. half to keep on during our addition of team, more initiatives of focused a our In first the number and activities

successfully in have Warminster, concentrates that consolidation business single location a We site activities completed in a Pennsylvania. our

have and for Arbutus's delivery together develop we've Sciences conjugate future Genevant technologies on combining mRNA on LNP RNA-based well We're We potentially equity as potential mRNA encouraged proprietary five Genevant products. as with see delivery retained is partnership wholly royalties portfolio BioNTech Genevant's we ligand utilizing products partnership the therapies Genevant. commercialized interest to focused substantial by launched successfully as a the announced in co-development Genevant being a the recently and with industry of leading with an which industry the field leading transformative for in of technologies Roivant.

of year from additional potential we Patisiran could royalty on with capital this the Alnylam's and ATTR which Importantly entitlement be enter non-dilutive second the runway amyloidosis XXXX by for treatment later month. a the this for past drug FDA the approved extending half hereditary cash our of

to our our HBV value. our toward shareholders' turn destabilizer. I sustainable will care in of significant building describe for team call as great the Financial and and many as be the inhibitor our and brings extensive experience advance chronic operational capsid and Officer. HPV the Hastings we and financial, Dave delivering Dave and biotech as goal Arbutus a joined over now Sofia of a Additionally, RNA know, Mike Mike? further Chief to asset strategic recently you industry will

Michael Sofia

Mark. Thanks

of by clinical second is mission active support AB-XXX, which product replication pan-genotypic as is biogenotypes plus against AB-XXX in inhibits all acting well molecule as developed generation new a capsid protein core inhibits chronic and cure is stage cccDNA our highly combination against agents. our the binds therapeutic potent inhibitor turn is DNA bio-uncoding employing in [indiscernible]. to Our and pipeline to of a HBV HBV formation. which

combined mechanism in-vitro HPV agents in-vivo We with that current of care can or agents proprietary in combination when to given reductions as other synergistic thus standard action in therapy studies it demonstrated supporting and effects Cure was be liver to of as and In AB-XXX strategy. with serum deliver have AB-XXX HB DNA the orally, multi-molecule where in novel animal shown our an nucleosides. additive well superior levels

orally expect a progression a day. available to demonstrated both profile be studies. it into that dosed molecule allowed favorable and also vivo safety has have This human in we in-vitro clinical and once We is

best-in-class. of Our AB-XXX its preclinical characterization that indicate the it among put could features

of reduction reduction We Indeed a levels activity into the we and in in and serum reduction RNA viruses, and potent active destabilizer, S also that molecule HBV is HBV. This a first level novel RNA we viruses. expect models both look against of and level dosing. variants. RNA, module pre-genomic against have dose-dependent our includes orally the antigen acts are another daily developed large to development Biogen and in number reducing liver. levels This pan-genotypic in molecule demonstrating company which a resistant s-antigen against nuc a of It once is AB-XXX such believe selectively other infection, HBV results We It in of forward its is active a not a and product. patients. RNA of to available to DNA showed we advance addition

believe nucleotide We Entecavir distinct were in translate over a to combination now would AB-XXX this XXX range I antiviral AB-XXX in combined, AB-XXX they tenofovir and combination in activity. When ARB-XXXX study. combination turn patients and synergistic analogs, and models. siRNA from have clinic. the AB-XXX to the with of to call will and like additive complementary Bill, moderately our to of also AB-XXX discuss demonstrated DNA and and agents studied The preclinical to reducing and HBV other complementarity we

William Symonds

Mike. Thanks

response immune tenofovir to patient's the immune system role meet Phase a to of triple evaluate In with patients surface the Xb this system an to predetermined response Reducing virus be interferon with prerequisite a respond in adequate infected to antigen levels, is in pegylated surface hepatitis against B initiated immune antigen study combination B ARB-XXXX study the have reduced and . initially after predefined the not cell. key hepatitis order XX week We are of followed in response with of addition treatment. who treatment and criteria who Partial allow will qualify believed a study complete discontinue by post interferon ARB-XXXX response. pegylated do evaluate with XXXX. half treatment follow-up off a criteria study medication. by six from second this week week treatment treatment in reach will XXXX, weekly Patients results interim period, the results the to conclude for six expected or will all The patients

agent, treatment of patients many B a to The on week contribute to patients of six expected B the with molecule surface and Results over to the this I combination like to by a data interferon Dave. described treatment antigen trajectory loss surface expect call would loss durability. small how design review to hepatitis pegylated future is help these the XX. We antigen week to now are will studies, hepatitis reach earlier. from inform Mike study turn

David Hastings

Bill Thanks, team. great good awesome. Arbutus be of part the to Great, It's everybody. and afternoon

to assets and the am mission resources succeed to just want confident results to everyone industry turning and I the that is call say I a the has curing with leading. differentiated, proprietary Koert HBV. financial look complete and and investment forward before I to Arbutus and how development its capitalized, we pipeline science as working of to review quarter, community the And has well leadership has move So over that's in Arbutus forward. for the great

it I'll Koert, to turn best over with you. So

Koert VandenEnden

XXXX. have to on very quarter you of review excited We're for Thanks highlights Dave. I'll board. the financial the second now

we Roivant. technologies outs that During this Arbutus company to a completed of our quarter with and is conjugate LNP newly the spin together by jointly Genevant, informed owned delivery

implications million were site results a substantially related The $X.X QX earned revenues XXXX. share, of $X.XX QX, closure our explain. a attributable with $X.XX in gain common primarily the to royalty compared approximately or Starting and $X.X announced our million to as of QX, revenues we to reduction compared which new expenses In income revenues net related to I'll of $XX.X our XX%. that or common for in due per XXXX, by per that consolidation investment income to million our by completed consolidation. recorded of $X million of The arrangement as the XXXX, facility we Revenues in the and of quarter in with of statement, shareholders offsets these loss in in workforce Arbutus' impacted was QX site [ph]. QX, from service reduction also XXXX. share initiatives common second We to well license Burnaby Genevant on financial our financial loss of as the Archibus resulted as was Gritstone,

of expense $XX.X $X expenses in collaboration On a is XXXX. the million due side, $X total developments compared the change offset spending. of research increase of quarter which and second R&D $XX.X than contract of of decrease expense million to stock-based by more compensation an is The million to million in

towards expenditures as consisting employee Our of $X.X well Consistent increased related stock professional increased an oral paid developments million relocation by was of the reduced by to accrued million expense severance our QX advancements offset incur income contract costs objective site with cash closure of Genevant. costs, employee as site our was expense related to G&A of million $X that pipeline total parting earlier. and spend our approximately described under R&D of our $X.X our primarily therapy preclinical reduced related reflects service and we of clinical of combination continued as end which in to consisting Burnaby of as from of guidance, the consolidation QX million employees earlier consolidation to benefits facility by and XXXX, formation result $X.X of was severance, expect a fees costs. offset compensation facility we based related recommended XXXX, QX. to plans, of In of our of

in million common our full in $XXX resulted the we increased expected the significantly, XXXX, to recorded $XXX gain our will June the XXXX income $XX.X had that of compared QX reflected site billion XXst. At for Arbutus investment the in XX, value and XXXX. million March results. an from We of million, Genevant. exchange ligand from be of cash license This Genevant in gain $XX.X investment equity of consolidation million Genevant. the at at Other which and and $XXX XX, we fair XXXX aggregate in a million delivery in Most QX to of of $X.X conjugate received to December balance technologies our financial of on LNP benefits

the of payment operating compared Our it from quarter $X.X XXXX. cash closure $XX.X QX, burn our was at from expect an costs cash to our and approximately $XX changes of to in $X $XX $X.X totaling million of $X.X be for in Mark. to as operations collaboration QX for back burn like the provided during activities turn operating million million of total million, one-time XXXX included with related consisting Alexion to cash million was QX capital, We time. million ongoing included I'd in of unusually call upfront used XXXX which million cash the in facility. comparative low working now to XXXX Burnaby the still for

Mark Murray

now I'd Koert. to the for like Thanks, call open Operator Q&A.

Operator

line comes Liisa the with JMP [Operator from Instructions] Our first Securities. question Bayko of

Your line open. is

Liisa Bayko

great. Hi, next specifically Thank and at, through the from my that curious oral for looking you're what the all have walk steps immune well? kind question. Can component taking as for combination us like you. of thinking here Thanks an about of I'm to you you

Mark Murray

I'll give Mark. This I'll then or high like Bill that. answer if to Liisa. add them Hi. would the do have and you Mike level is

we've of initiating Xb Phase be Xa, and the started that's think already shortly, study will Xa/Xb that XXX. the has AB-XXX, inhibitor I indicated So the Phase capsid we

in patient So And respectively of initiate be is end including the to through a a of nuc then by QX we will a year, and of our next will those guidance be we of the two, that those combination okay.. QX by the monotherapy position portion year.

And employ so an this initial study not added component. immune will

component. HBV see, Bill looking do that? if some down anything and you drive be can DNA have their s-antigen add to may in immune that to restore to will patients and we We

William Symonds

has it together you that I schematic refer That think how programs deck XX and summarized nice will to Liisa combination of that's all-oral a study. corporate nicely just these I website. come time you, on Slide of into over Mark, the No, would the

Liisa Bayko

that you thank Great, how think That's you follow-up, specifically? the think that's Thanks a my do just addressing helpful. about How last about you when you. question. I'll - all-oral. then component And think immune and

Mark Murray

want you Bill, continue? to

William Symonds

Yes. Sure.

of So component I the there think antigen. reducing Liisa part comes addressing immune from surface

without surface expect an it. could system help the that mentioned stimulate effect the RNA, to levels. antigen we boost earlier, upon as drug enough alone So with that, immune to that destabilizer, And have reducing anything Mike be to by

line we to get immune on need II of our well. Mike the going first all-oral more other in study. are terms do, and discovery be in of that's address as programs combination, what working if what we'll we So we if that a we attack, to And see team of and the number something back then phase the his in component

Liisa Bayko

Really program. your excited you. Thank thanks. about Great,

Operator

Our is with next William question Xu Katherine Blair. from

Your line is open

Katherine Xu

others Hi, let's I'm just kind whether to also and the this study if of expect the expectations, could you're ASOB? achieve. can. molecules each you looking is these to through of design have XXXX And of, good I we to or can Thank afternoon. data XXX. all, what you. what for whether also And us you And different would the walk mechanism XXX wondering similar you XXX profile for for one benchmarks see and resistance set Phase at both say love the

Mark Murray

Mark. is this Katherine,

So Maybe resistance? there's there. then can start several XXX maybe the Bill you first trial, questions the on design the XXX comment Mike of the and and with XXX on will address we

William Symonds

Yes. Sure.

So hi, Katherine.

into into adaptive cohorts of into umbrella which slides Mark we're fashion. So chronic a the one a at has study It's the think the mechanisms e-antigen spanning the weeks of And general too, of drugs. to endpoints actually and New dosing possible, volunteers, and trials type and single our refer in of and get with where hepatitis multiple dose from schematic slide I levels then of Basically and XX those each in in I'll patients, the upon going to spoke couple ago. going on a days that's of e-antigen multiple then we're escalation looking XXX at volunteers coalesced doses for doses healthy design, into the different B Also sets us construct markers cohorts with up XX them patients patients trials. for he negative, these healthy each go and pharmacist protocols both dose conference, patient website, very protocol you positive drugs all of multiple based including be at you similar then to which vital style ascending the We when a a York at single XXX. showed call basically again, design employing single it design. the

us, XXX Of s-antigen, capsid be course, well. we have DNA those other with will as looking available e-antigen at reductions, sorts of as so we to things. DNA markers such With

So about allow at on XX-day is we I'll of to programs hand to we the spoke with resistance. the data the little to over mechanism drug on with there. Mike course, then to program both part to of same enable They're of bit, time. the look different us question. drugs but the to will for have goal a roughly into it the us then depending be And to in these of go finish markers staggered around able that then combination both development patients the last

Michael Sofia

think so, look inhibitor Katherine Well AB-XXX, is that of other the at just every thanks. core similar you it protein to I a assembly Dimer:Dimer capsid capsid inhibitor like Interface, Sure, does. sort binds if

like just capsid mechanism this anti-capsid. they standpoint similar So a have from produce one, no a action, although of inhibitors assembly other of very that all number

All not same can binding capsid is inhibitors core site. these simply issue bind RNA same all structure. they to What to So the capsid the that biding encapsulated is bind different I the resistance say that within site.

the because AB-XXX are resistance fact we a and the all approach proteins. forward want I therapy our combination resistance with s-antigen vital about disclosing we're only down to be the we'll concerns using. combination But is knocks evaluation in many some other other knocks but moving make point levels, obviate we So that not therapy shortly. of also That down

Mark Murray

questions? answer your we Katherine, did

Katherine Xu

it it I [ph]. this aspect like that or know other is, kind based that, the then is knocksdown let's of good benchmarks of Yes, I you mean level science success say of expectations with out data of such, very I do compound preclinical level you is guess on and when there. then the reaches just the curious am each and question stuff internal quite there have DNAs/RNA/ module would course of internally without a of chance have

So.

Mark Murray

I think an set we're not to ready expectation.

want and comparable. we hope You this to not would for are XXX humans well to is at of that from there course aware yet. that. because and we're to out avid be haven't you point Mike, an set there data We're to envisaging put we other in capsids add expectation

Michael Sofia

is of we has that because see so hard we to nothing the know in actions, mechanism on sure, the certainly about everything based expectations. Yes, a set to feel But like reduction. it's a think been and it will comfortable effect I molecule, positive germ novel it clinic in very we

Katherine Xu

disclose you Thank bind data week data. you. aired also will six where whether Have XXXX be the and XXX

Mark Murray

Yes, it XXX similar I to we have of the talked bind - the so other Essentially about many dimer. to dimer, does we think molecule. competitors' that

Katherine Xu

So I mean that. XXX, sorry about

Mark Murray

Yes, although B international RNA. data at molecule which disclosing that we to on this interact we say not will specifically works. our it But XXX, on upcoming mechanism have with well HBV suffice it hepatitis be by does meeting, disclosed more

we that other in So it and viruses. action unique and asking any have, RNA the and does or result a it HB it all selectivity, gives in not - unique on effects select high very does impact of DNA - - mechanism studies

selective. very it's So

Katherine Xu

after? I was Sorry, data, ASLD week the six was like or last the at the XXXX it piece guess is data

Mark Murray

a assembling by to the plan deadline. because, that of have question the it's specifically data abstract don't we So ASLD for

other it some get in way. you'll So

Katherine Xu

for indulging much. me. Thank very Thank you you

Mark Murray

Sure.

Operator

with is from Nakae question Chardan. Our Keay next

Your line open. is

Keay Nakae

today, and that will might early, - know I design thanks. combo a XXX the study and you monotherapy where by but know the or it's I be Hi, standing but of informed results results are XXX like? look what

Mark Murray

very Bill do is want early. But on to that? It you comment

William Symonds

think drug influences B. of safety drug, it's of this to two drugs putting the to have to the small together, to going the point alone the the to Yeah, the design be at it's say one the I the together going of together that ability safe of parameters going evaluate first evaluate vital together pharmecokynetics alone different study it'd and as molecules evaluate on and that's hepatitis

we you two that with put that the nucleo spending thinking as of where the together we go this with going back study possible what think study optimize well. applied can something on together. the a we different And again interrogate strategy I about So that combinations did be planning we're one where concept these is to how this if fully to drugs here with clearly our drugs that, best is time these lot for and drugs design is

Keay Nakae

Okay. Thanks have. all I that's

Operator

from question Our B. line Riley [Operator Madhu Instructions] next is of FBR. with the Kumar

Your line is open.

Madhu Kumar

question. Hey, guys. my for Thanks taking

ultimately use think interference RNA how the transcripts destabilizer, as technology earn you that about way of about B. RNA relative to Hepatitis from we a do think when So the down RNA

Mark Murray

Mike, do take you that? want to

Michael Sofia

Sure.

it RNA everything molecule I the a that small IH that that. the advantage a agent. destabilizer RNA bioavailable much say is orally So in would pretty it's does

knock some administer kind ultimately So combination molecule drug to modality delivery agent that it have for combination end, a message. of that XXX delivering fixed in in us other having easy dose to allows versus can with the a

Madhu Kumar

to kind of both aspect Which other you thinking assessing DNA inhibitors of of about of do think separate kind biomarkers? inhibition think go of inhibitors core for deeper so kinetics, phase kind relevant the kind I And there core are suppression for about How or core kind from of broader the more mean really things about the is there thinking like class? endpoints. efficacy HBV you relevant inhibition DNA of you are kind core kinetic start then inhibitor, various do When where into biomarkers. efficacy various core

Michael Sofia

is Mike. this Well,

well data is that in the vital going replication the the the liver fact shut tenofovir, clear well replication of in inhibitor in the bio liver plasma. And shows be to not animal in the process. the core to now it's seem with the or there models a HBV more the shut - bio-DNA we've out There is in see reduce much you're now significantly leakage liver as as that So size do is theories to you at through combination don't and nuclear you're they work in in the that pathway, application. is one down or that with better. to preclinical capital fact reduction is the completely expectation What better completely in that shown reducing XXX able DNA it's down than effectively levels nuc, nucleoside assembly and going

also now on molecules much organ, the that that target seem additive then are they now bio-DNA, So that of so shutdown process. to nucleoside And nucleus, that the replenishment that that to really is combination you in inhibit inhibiting that have expect but process effect we the with such an exists these the of have effect in uncoding that a bioreservior better parasite. core now that cccDNA

there have an added core you that these provide. inhibitors So benefit

Madhu Kumar

with you One XXX one, last or XXX Okay. nucs yet? all co-formulate can

Michael Sofia

the that this ultimately stage. done say but can't would Well, early today that I at be plan, we've

Madhu Kumar

Thanks great. very much. Okay,

Operator

back the further remarks. any for showing not I'm And Mark you. call questions. closing turn I'll over now Thank Murray

Mark Murray

today. you. you joining Great, us Again for thank thank all

we HBV pipeline. to you continue deepening make As our can significant advancing and progress see, in

mission. In upcoming we summarize completing in important a activities strategic initiatives this addition of the on months. several and resources To to number focus squarely further Arbutus' have to deliverables

our by Phase combination study proprietary HBV quarter, the and for end Destabilizer, of of to initiating combined of in and in position healthy approval care year, anticipate healthy anticipate for We this our trial Our first of XXXX, we portion all And nucs of Arbutus' a for clinical part RNA third plan volunteer or submission. study Patisiran dosing otherwise in AB-XXX regulatory third the complete AB-XXX all in asset. product our Phase regulatory filings a LNP early capsid monetize half could the participation which enabled agent, or royalty the our and the regulatory initiated as We've inhibitor, RNAi to we in successful this Arbutus generation pending and studies. receiving next this Phase result ahead. year its in on of to starting licensee Alnylam, for today novel of call with volunteer AB-XXX, has in your payments AB-XXX quarter forward sharing look enabling the appreciate approval AB-XXX includes in being today, months portion as Xa/Xb pending the projected the GalNAc XXXX. of you our standard IIa agents, We the everyone of thank This of the joining. oral for of with progress updates you Xa/Xb call

Operator

program. does this gentlemen, and Ladies conclude the

You may a have day. now great disconnect. Everyone

Arbutus Biopharma (ABUS) 3 Aug 182018 Q2 Earnings call transcript