ABUS - Earnings call transcript Q4 2018 | Arbutus Biopharma Corporation

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Operator

Good day, ladies and gentlemen. And welcome to Arbutus Biopharma Fourth quarter and 2018 Year-End Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time [Operator Instructions].

As a reminder, today's conference is being recorded. turn over to Ms. like now the to call I'd Pam Murphy. begin. Ma'am, may you

Pam Murphy

you. you thank afternoon for Thank and all Good joining us.

today Dr. Scientific On Mark Dave Hastings, Chief call from Officer. team and management the Financial are Development Murray, Officer CEO; Dr. Mike Officer; Chief Chief Sofia, Gaston Picchio, Arbutus Dr.

today, HCV for like timelines results this remind our our that AB-XXX call statements, are results uncertainties I'd based cash events. statements actual update of and regarding some future are on or on Report Mark assumptions we as today, the differ statements and Any Before a forward-looking forward-looking clinical the forward-looking we and AB-XXX, runway and to to compound to AB-XXX begin, of risk recent lead call pass and new for those information statements pipeline, potential to Arbutus that These our a and document. we materially, XX-K most statements the as these our our proprietary expectations described expected SEC current we'd agreement. call our subject Murray. of no that and cause like the expected revenues on licensing you may result to in Annual to from including are in now made during from obligation undertake time-to-time including of statements make number and including

Mark Murray

Hastings which an results, describe to open AB-XXX everyone Mike key to then the XXXX. you update financial joining objectives Q&A. call thank going our with we'll focus for our after program. RNA call destabilizer and will And Pam. up on I'm follow on Sofia this Dave HBV on remarks will Thanks, for us the my today. for

cure with have believe duration. for these therapeutic by over be having we regimen patients the of you discovery focused the aspects and HBV. hepatitis on finite surface a this of believe are immune of treatment developed reawakening. that important, best We important. and using a focused the complementary agents the that for antigen chronic on, is HBV administered ones achieved a we therefore most We proprietary can therapeutic replication, agents including development developing a are believe we combination As B diverse end, pipeline infections are know, chronic are expression we HBV of control compounds and To target

late in the nucleotide PK standard it Our deliver two with later results analogue pan-genotypic, once combination top potent, have evaluated and a with an complimentary AB-XXX lead second and phase variance, has cohort being compounds, the our cohorts presented inhibitor, the patients study appropriate doses the nucleoside This daily in surface meeting. B is respect completed care. this line capsid antigen targeting compound. dosed resistant of several a We AB-XXX the analogue. trial. with Hepatitis in in favorable is include AB- now a of works oral in in trial includes current XX evaluation advanced report is It HBV Xa/Xb quarter at may is day AB-XXX. XXX to potential AB-XXX combination clinical dosing against scientific an a in mono-therapy using results to full of of intend to year and daily profile was is used approved quite nuc the AB-XXX meaningful the be over with

of to combination of these the trial We the year in second trials. phase also and plan establish analogue clinical X safety and to AB-XXX to initiate of future AB-XXX half support a term long nucleotide a plus a nuc in combining use

reduction. surface regarding antigen Now

patients. to our we reduced antigen Hepatitis very enabled LNP in generation agent RNAi that in said, confirm B quarter some call, first surface I As AB-XXXX third low our levels

HBV viral on subcutaneously all focused thus applies inhibits of delivered all now the HBV subcutaneous of replication. frequent a a our that the targeting conjugated but trigger This transcripts, and compound the employs our for dosing are only reducing spans proprietary once benefit less AB-XXX. RNAi important single provides dosing, also potentially not GalNAc We month antigens agent, technology, Hepatitis which RNAi dosing. allows AB-XXX GalNAc

the decision. further but we testing Since announcement, compound of initiation opted the half Hepatitis with the and inhibitor, well trials mono-therapy have moment, findings, currently itself HBV term of phase clinical with studies will still number a determine an approved of studies mechanism Provided tolerated be two be safety this make we describe safety delay to these Xa/Xb also an Mike Hepatitis phase of B and to appropriate. completing expected, the itself of as a their B Sofia phase via as and respect longer characterize We an this a initiated with combination that in surface expect are to AB-XXX novel expression that our the to which the AB-XXX, targets replication these ongoing We I'd on are anticipate the combined to to move have in which and will update regimen. IND of allow the the an clinical believe together to us make second on designed non-clinical go, clinical order and agents, in agents X begin these its approved is action trials nuc, evaluate a XXX the AB-XXX to humans going , on surface to quarter second two a with now year. trial XXXX. half Xa/Xb combination AB-XXX believe some to a destabilize, effective perceived very a which trials enabling potential antigen of studies. AB-XXX We’ve RNAi no-go our like of first mechanism of In decision capsid finding activities with These able oral inhibits track seen antigen, into nucleosides to when year. studies proceeding we AB-XXX initiating and reduces in action. in AB-XXX, AB- to the

committed asked we the if being And is program? the answer were often resounding destabilizer are We yes. a RNA

AB-XXX, to distinct underway robust with novel lead compounds activity. addition for this we optimization other In biological have efforts

We Arbutus. over are very call focused on and represents importance meaningful destabilizing are and Mike we for RNA mechanism of a the confident, turn could Sofia. for target, to relevant very be here like patients Mike? success and the I'd to now therapeutic

Mike Sofia

scientific for our a at agents using chronic treatment All focused are administered finite at cure of on B Arbutus Mark. therapeutic Thanks effective duration. combination Hepatitis developing for efforts an

and eliminating affects exemplified aspects which or B the and when degradation. highly approved Hepatitis host immune potent and would replication the and selective the regimen target/mechanism have we to sequence very virus. our of Hepatitis on Our exciting of the B degrades reawakening is for (NYSE:A) the targets include response. making destabilizes very patients, by a of and surface shorten This PRE regimen inhibitor an antigen including effective HBV focus on that Through and These nuc. our antigen identified fully are lead presence molecules We've compelling production. a replication capsid them even very blocking HBV which could viral for DNA selectively target, novel virus series our oral all DNA in tail, reducing poly and work, HBV susceptible lifecycle, has viral AB-XXX, all a RNA is RNA molecules for also surface destabilizer, many thus novel identified thereby a RNA and more

including AB-XXX have AB-XXX the if have enter observed, are ready authorities. if clinical of fully effects order based to safety they're the these in-vivo GLP to based. XX-day us pause and a understand led The the series or clinical long study accepted the early CTA We the by non-clinical program CPA term XXXX, effects in accelerate a been observed to was specific, complete and the our on initiated the of we trial nine effects trial affects in-vitro determining specific, mechanism safety clinical we initiated late At were in program. to have are seen in designed studies, studies, had non-clinical the time announcement toxicology that phase the including Xa/Xb package, regulatory specie

of making AB-XXX the we encouraged several thus C insight Some we virus. seen greater have conducting are are months to for why is studies we're gained works data by require and how into the these will We've we progress Hepatitis and far. complete. But selected

compounds midst whether the action. or in and backup the go target, the be similar different to future is a of this safety we believe development in-vivo that of potent We make we're half the testing AB-XXX they have in the various observed modules of second this of position might development the destabilizing of mechanism clinical regarding activities. because are In important types an chemo relevance parallel, we AB-XXX, explain several RNA year. a advancing classic we in will potent that decision believe to We for have no-go hypothesis of the any findings

We’re molecule and I program This available other a treatment orally patient mechanism with to regimens form is on combination interesting also our small broad potentially over complement candidates. provide our for programs to HBV program. actions, the effective research call Its working complimentary strengthen focused Dave. would effects early and different inhibitor of on turn now population. and here virology to identifying like could pipeline, opportunities additional stage immuno developing checkpoint very including

Dave Hastings

and our the start and Mike, position, runway. I'll today Thanks, discussing company’s good afternoon, cash guidance by cash XXXX everybody.

reminder, balance a cash cash investments important and financial XX, At and metrics. $XXX cash XXXX, million. As of most our we are used had December

activities the of Our XXXX million, cash which was used end lower in operating was $XX on our guidance. during

million The $XX today ONPATTRO would cash touch our For to million other fund between like entitlement. and I area balance XXXX, to in expect allows XXXX. into $XX us we our use is royalty cash, to on which only current

As year. we do teared low we the on expect tiering, mid had material digits based our sales. in Because previously to be of rate royalty to single royalty is not income this that disclosed, net our

term pleased However, of the long the with launch we trajectory and potential the this of product. are

Additionally, and such when potential. upfront still as happen a long while if predict economics, stream we product's are transaction the to aligns with possible retention payment downstream an this may we royalty for deal a of monetizing or open feel as we can't cash

I'll Mark. with the turn to that, So call back

Mark Murray

Thanks, Dave.

developing As HBV HBV questions. a are We and turn for very commitment believe pipeline. proceed our point, strong the financial I'd experience with you skills, this to heard, the regimen have we to strong patients. with to curative Operator? call team advancing like for a At combination we position over a in

Operator

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

You may begin.

Unidentified Analyst

on John for taking questions is This Liisa, progress. and the the congrats on for thanks

XXX talk could more couple, study, and nuc. that AB-XXX, there now? at about be you if And on that cohort would looking may the decision you first a in a a what Just wondering is plus trigger was mentioned if ongoing ongoing I

Mark Murray

can we that to cohort learn, something able think either we if just to or others learn question a learn important the that. it's are something not from we'll John, data So from -- that need meaningful we doing with see we determine we

Unidentified Analyst

And to how think it's confident mechanism they the you're than destabilize it's backups mentioned from the moving specific. in can and that two. XXX? might to on you're I the the unknown or you again working the But Thank given compound you discuss But mechanism the BCs, and whether more you. other defer safe say backups

Mark Murray

I'll Mike that. Mike? comment ask Maybe, on the to

Mike Sofia

So we action. aggressive us and strongly very reproduce the very this All this is in compelling. of mechanism we we have, tells a very area, that program believe said we data it in this because

like to in AB-XXX look and So mechanism distinct are but we've from the at similarly. smaller molecules that not same molecules have continuing had chemistry mAB-XXX work only a action, of clinically very that effort very large

of AB-XXX I like number of a can is you series chemically that all them but different have we're distinct. say on, work working they're that extremely So

Operator

with question And comes our Katherine Xu line next William of from the Blair.

begin. may You

Katherine Xu

potential just you I'm RNAi summarize to-date your a Can from talks also, you. And regard you bit you conjugate your others? XXX. GalNAc differentiation to the have have with observed? and animal invested maybe little wondering platform, what that Thank

Mark Murray

studies. down unique trigger linker, that proprietary the an RNAi that us. And designed spans ligand Katherine has which transcripts. And just this high is a be agency all single GalNAc to employs So the specific of hepatocytes. lack it anything sequence binds specifically into about that to currently the GLP this entry were have tox the specifically and we it's have the to viral a level, don't of And said moiety the of we in the studies, say and including we process surface parasites IND time. to is We enabling the mediates the

Operator

line next our of And the from question Keay from Nakae comes Chardan.

may You begin.

Keay Nakae

view in Question each year how back-end Dave out that burn. of for Should as cash out loaded? throughout think terms in we How more of in about quarters? the evenly should we the spread the terms it's that or front-end of spread

Dave Hastings

our hockey the stick a ramps, Keay, year it's of dramatic. the but second half spending probably think not is in that I slight clinical

Keay Nakae

GalNAc. follow-up And payload? much then on use How modified this AB-XXX fully to going to more does question and allow a you

Mark Murray

Keay, properly. chemically you say modifying if to degradation. administration, I protect this would you using is subcutaneous What map which of end is it sequence understand up from the I trigger route do

Keay Nakae

while your and expectation What is And doing durability modification. the impact? in that potency of

Mark Murray

is obviously and durable product can designed be make been the to it. as potent as Well, we

So we comfortable and this, variety that a one is looked that do have found potent at durable. are we ways to have of and

Mike Sofia

HBV XXXX. more of of in this action, molecule Clearly, as animal seen our knockdown in so a unique than that also said, to near nice we've the a far antigen triggers modifications molecule the out some certainly that extended very the number in we this Mark very, of animal duration drop trigger meaning we or as potency, a has maintenance as dose. one potent as S-antigen that nice is, loss a And But ways. after production initial have models month demonstrates make very in disclosed models very

agent we that this once a the going dosing is be to believe belief leads the So that clinic. monthly to in

Keay Nakae

were And any preclinical on work for publications this? seeing the you

Mike Sofia

work combination EASL we there. and EASL. studies showed the other so We’ve these a outcome with agents, we've XXX actually done some an have AASLD at work that presented poster of At also

Mark Murray

find our site. some And on Keay, Web the can work past you of

Operator

instructions]. Thank you [Operator

line Mamtani from Mayank the Riley. from of B comes question next Our

You may begin.

Mayank Mamtani

three me, the previous tagging Just and along from question.

path may of For thinking XXX, quarter second at and EASL the do we class about learn should about the we in that How you have and drugs. just contextualizing think others readout also the what meanwhile? have nine through on done in may you curious you I keeping obviously mind And you of clinical then to studies the just XXX, was that the said clinic. that then move just

relevant that that around do you the learn that So once work a you is last of Is to checkpoint hypotheses. some said backup? virology work for how of are you the that you to backup And what to be learn there? And have question, prioritize target there? relevant much minor of want inhibitors. may your you two you will particular do immune molecules there much How then guys anticipating will to identified

Mark Murray

ask repeat virology we’ll comment comment expectations let's maybe to to our start then you for and readout, you on maybe to second Yes, want come question, Mike, so and backwards. XXX need are what to on immune Mayank. to could back we the Gaston then maybe -- get

Gaston Picchio

be program that So HBV. standpoint good as going small because we've than modality we approach initiated would be. the while a this molecules for identified was a to be inhibition area, in field and believe form ago in therapeutic small better We molecule immuno-virology will a the a antibody a checkpoint HBV

in in through a the not efforts of in we're forward But that in distant And program. move optimization we believe lot fully this optimization development. time, our small to one a into engaged in lead are position future it that lead point in at made too we've space. So progress molecule on we our our ultimately

Mayank Mamtani

Can you the to early? you that there? talk specifics may is Or pursue target to want that

Gaston Picchio

Well, And in is space. currently where immuno-virology PD-LX we've very target. of I that's much interested engaged said in publicly as that think our effort we're the

but PD-LX than immuno-virology they're in targets our other at looking program. checkpoint are We still earlier

Mark Murray

set couple at high see cohorts a expecting XXX the what Maybe to Gaston, you in just want study. on in comment of level we're a

Gaston Picchio

and looking vertical Also, other, HBV DNA, some at biomarkers, classical for few basically, we're RNA So correlated we're and such as surface HBV antigens the more. parameters. a looking antigen,

DNA decline capsid down minimum HBV if in looking we go mechanics a RNA And you happens marker, and or antigen. should the precious a at see rapid what inhibitor. we'll most we're then surface with at So the wish,

you Although, a short-term days. course is XX this remember have to only is

So not there. see as we do to changes others expect dramatic

Mark Murray

of questions? did your Mayank, lose one we them we or did cover

Operator

[Operator Instructions]

Pam Murphy

answered XXX. we think Mayank I asked don't the about question.

Mayank Mamtani

through be like about just was curious that what some molecule than are identify was said to is earlier already you move actually that you three how that characterize backup was doing earlier components. expected work you're just work I I of the were I doing the to just curious once curious of work, able basically just of you the And trials. that the like to ready some relevant for was if to issue. the some

can the You pretty the move think about to way with molecule backup that it? quickly. Is right

Mike Sofia

it lot understanding we're observation saw it. caused that. our causing what getting the next issues the works generation right of how and the that action as allows we about informs around that's to seen of before, the And pre-clinically think observe. understanding agents maybe what when know causing about a more does, now and we’ve because -- HBV, maybe for about us think that it knowledge work I issue how mechanism we about more some We're maybe we molecule, Yes, we molecule and way this that more the know move and us to of more what’s of to the

say a can significant program. definitely it's how I in this on having agent we impact progress that forward So future

Operator

to turn And showing I remarks. you. call Mr. Mar for I’d back further questions. like CEO, Murray, closing to am Thank no the

Mark Murray

operator. you. you on our appreciate and the be to to call important we Operator, to promises today. in ahead. your year We XXXX the months our and an progress participation sharing look Thank in very you, forward with eventful updates back

Operator

day. today’s This all have Ladies great program thank and conclude conference. Everyone, does the you you. a participating may gentlemen, for disconnect. in Thank you and

Arbutus Biopharma (ABUS) 7 Mar 192018 Q4 Earnings call transcript