ABUS - Earnings call transcript Q3 2019 | Arbutus Biopharma Corporation

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Arbutus Biopharma Corporation 2019 Third Quarter Financial Results and Corporate Update. At this time, all lines are being placed on mute. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today’s conference is being recorded. Instructions]. [Operator

like Murphy conference with now speaker to hand Pam today, Investor to would over the your I Relations.

Pam Murphy

Good morning.

On Executive Chief Arbutus President Picchio, the executives team Officer. Chief and Officer; are the call Dr. Bill Chief Mike Development and Officer; Officer; Financial Chief Hastings, Dave Dr. Gaston Scientific from Sofia, Collier,

the company's followed who'll provide up a will a of for review then Dave Bill call financial corporate objectives We'll of questions. and by be the third Gaston begin with and quarter results. clinical research, Mike development, to available Q&A. review clinical open will development-related address

hepatitis Before made pipeline, remind during we you including statements, to today statements call proprietary time combination for compounds HBV. the forward-looking improve upon are of AB-XXX and and potential expectations B drug begin, the regarding like including contribute results and potential regimen that we'd statements curative some Arbutus' care and lines to candidates future for AB-XXX a for standard to the and clinical of for

forward-looking risks on cause Form and a time. to our uncertainties number Quarterly described most other Report on and statements filed reports XX-K, SEC periodic the from of recent differ time in Report may actual results Annual our to XX-Q, that are with Bill? These including materially, those subject to

Bill Collier

on clear. thank call and today. This much, thank can is us us Pam. for you loud joining the very you, Hope Okay, Bill Collier everyone, and hear you

this and point. succinct obviously the is we'll and this that busy comments for of appreciate very morning so We time many keep our a you, to

the of Phase announced project clinical inhibitor. we Xa/Xb early lead That in trials discontinue treatment particular Chronic of development to for clinical oral Now, you our as B. many in decision capsid October, Hepatitis know, of was the AB-XXX, our

we cases trial XX-day was two this acute the healthy a in Xa in on observed of clinical hepatitis Phase fact that volunteers. Now, decision based

hepatitis. the two resolution of acute their experienced importantly, Now have subjects concerned

for of and from is it break-up a results Meeting Pharmacokinetics, of the Phase be volunteer poster A.M study will Safety will the the you in that title chronic AASLD at XX-day XXth, and B the AB-XXX let session We subjects. wanted the both know as late in the well poster and we November present and trial X the to you of Hall the Antiviral AB-XXX in clinical on upcoming as healthy those Tolerability, held inhibitor at hepatitis capsid healthy subjects meeting, B activity at Ia/Ib

care upon despite AB-XXX, remains at standard existing results of regimen these B of mechanisms by that and developing curative a the for mission our in Arbutus to is unchanged several unexpected action. Hepatitis improve Now, that different includes combination

four Xa/Xb Phase focused of So compound. right proprietary clinical all areas. GalNAc we're our delivered now on focused RNAi trial on first completing AB-XXX, of We're the

capsid next-generation a selecting on enabling IND focused we're studies. Second, for inhibitor

announcing go/no-go RNAi; on focused our RNA a decision on we're I’m sorry Thirdly, de-stabilizer AB-XXX.

focused research our we're inhibit oral advancing efforts for fourthly, on And that compounds PDL-X.

add little these me of detail one each on let So more a areas.

and AB-XXX, of portion Xa/Xb results the XXXX. trial now the evaluating the process the quarter Phase B subjects. efficacy single from of to trial. We clinical we've dosing preliminary healthy portion Xa/Xb dosing completed cohorts And safety and subject hepatitis we're Phase of of in the Regarding clinical this chronic in dose report in in intend ongoing first

now program. to inhibitor capsid our Turning

from regimen. inhibition distinct of have the to compounds potential to we compounds next-generation a oral of number the a with HBV AB-XXX replication that scaffolds competitive and have believe other combination chemical as We that of are part contribute

substantially more XXX. compounds these are potent than Now

of protein. capsid presenting HBV demonstrates shows variants of entitled core We’re core and mode a Meeting improved these IXXXT is detailing AASLD The and HBV binding series unique inhibitor inhibition to poster next-generation WTT-XX the protein a compounds. poster capsid compound novel

meeting, be Agents. B that Hepatitis in the And again, Therapeutics presented Xth X going in November New the on for entitled those poster B of session at Hall are will the to you A.M. who

all I enabling you of that objective by want one this of to compounds studies these let our December select know year. is for IND to

likely which all leads destabilizer AB-XXX you're decision aware, continue reductions including our is XXXX. oral and expect proteins as announcing HBV to Now, early RNA in in a S-antigen go/no-go we to

in addition immune to PDL-X curative and believe combination destabilizer developing with select RNA we hope reawakening to important small In to XXXX. continue will of still enabling a end the progress oral compound molecule studies by our be we that IND for this We capsid programs, and program. make an our element in area a

his me Dave, to over turn now recent most our let the summary to financial call you, David? for So of Over our CFO, results.

David Hastings

morning, good and everybody. Bill Thanks,

start runway. important by are metrics. cash discussing and company's position I'll used a and as reminder, cash financial And cash today the most

a So at a versus December we million $XXX.X $XX.X balance at September balance XX, of and XX, XXXX. XXXX, had cash investment million of

first $XX.X the XXXX months in was nine used cash Our of million. activities during operating

sales the by $XX.X partially million million was in million from $XX shares $X.X the this royalty net of under gross net, a offset program in ONPATTRO entitlement in net proceeds quarter non-refundable ATM third year. of of and sale of XXXX, the on from proceeds our Now our earlier the portion in issuance of

that early of settled is in fund we arbitration British to million with the our Also $X.X is the We current into XXXX. the and quarter used operating the a University included in now We payment. operations paid of in that Columbia cash believe XXXX. third sufficient $XX.X million activities proceeding

also to the asset million development $XX.X and impairment point million for were and tangible an our of of goodwill. I quarter that research of in-process this and to $XX.X the out would charges impairment like net including loss related non-cash

zero. in-process and market related to assets reduce the stage related of of a the it result an stage to of reflects development focus charge to is of of Both program our impairment our on amounts the goodwill programs. R&D early these Now the capitalization. later And carrying these our charges

sale of ONPATTRO. accounting sales net entitlement I to our discuss finally, of the royalty want portion And on treatment of of the a

the and is circumstances has transaction back to all the risk future of the $XX of gross assumed proceeds collecting this refundable no to of the under to up Now, $XX royalty counterparty. million million of counterparty payments

the in said a $XX treatment million record us proceeds that million counterparty of accounting the expense proceeds The interest to Now amortize between $XX.X the the the debt interest and future and calls the transactions effective initial be accounted non-cash will for debt rate the net the discounts difference an royalty received for million by to method. equal net payments as using received. for standard to liability in at $XX.X is discount these

record to offset an paid liability. to the counterparty non-cash We will for royalties continue with the to revenue

that, turn So you. to with it Bill, I'll back

Bill Collier

Thank you, Dave. Very good.

remind we I could questions-and-answers but have help us Dave think now your Sofia up help myself, everyone, operator Mike also answer if and open for to Picchio questions. just you to on Gaston line and lines the the

Operator

Instructions]. [Operator sir. Certainly,

with And Mayank Mamtani Riley. have from a question we B.

Your line is open.

Unidentified Analyst

[ph] have Hi And three This is congrats questions. Mayank. morning. good on results and Wayne for I on the

one Alnylam for to candidates you preclinical data observations help instance, AB-XXX And first siRNA? could the stacks program up the perhaps from program? the for or RNAi like relative similar compare The review is how that

Bill Collier

Okay.

questions So time, just at one your I each a will of so.

Unidentified Analyst

okay. Yes,

Bill Collier

easier, Yes. Is fine. that

Unidentified Analyst

question. separate If that’s a

Bill Collier

do versus of you results Mike for any competitors? that the the XXX want So one, to preclinical handle

Michael Sofia

Sure.

AB-XXX just recap conjugated to liver the has targeted GalNAc So which RNAi agent.

animal mouse model, molecule, HBV reported S-antigen This this and a demonstrated to favorably of that our reduction competitor compares AAV multi-dose specifically model in demonstrates data. dependent in HBV have We the mouse very model. reported

molecules parameters the direct very it various described Now, benefits head-to-head compounds to a competitor competitive do and in other comparing hard data and looking there ours that with very feel the but used, to comparison we're at the out their to literature. we

model molecule, the that generated. the knockdown we believe, based antigen of this also demonstrates the in we there. that that put model going to RNA, to once provide dosing HBV Now HBV DNA monthly the is in It animal on data RNAs in we've a and animal

in only can we also animal of liver markers levels in reductions also those see serum the reductions those model. the of markers, levels but We in not see

to we're and bullish on this overall, molecule well clinically. pretty So expected perform

Unidentified Analyst

Great. Thank you.

Bill Collier

to want you do two follow-up questions? ask your And

Unidentified Analyst

Yes.

looks this in dose X believe what you patient XQ is the readout in do us you're remind you Phase XXXX The different second trial? Could HBV from success one levels studying cohort. like

Bill Collier

you want the presentation said, in I that the hand will you today we preliminary one in But you. expect we've I that mean, heard on results do to then over comment Gaston, Okay. that. Gaston, QX to of XXXX.

Gaston Picchio

Yes, sure, thanks.

we out ascending. as So dose milligrams health some doing with XX pointed before, in been our and starting dose we've

of We we'll presenting that data next doses, be of first all within the XXXX. revealed quarter haven't really the but

types, so going the look for the And magnitude we looking looking of is do seeing but us important in importantly, consistency another believe only like? interested we service not decay, at. antigen are Well, think of terms to but success patient the in that we're different what across magnitude obviously, very will be aspect that I

Unidentified Analyst

such J&J on at inhibitor you of capsid inhibitor? high the cure? one relative partnered And has Okay. earlier still And reawakening prioritization incremental to choices, my the attain AI, what is the list that portfolio that at functional having as data last value question say is in seeing immune the Arrow core in the making programs a capsid targeted AASLD see systems is upcoming conference, combination after

Bill Collier

Okay.

I making previewed that's to data AASLD. the some reference, So think you're at of being

you to So, again Gaston take that do one? want Mike,

Michael Sofia

start will I Sure, comment. off. Quick

Bill Collier

ahead, Mike. Go

Michael Sofia

multiple is things believe the the and critical plus combination our belief a off affect we to application a being start for at will patients. doing functional of DNA replenishment inhibitor look do complete [indiscernible] new that CXC I you HBV So there, surprise capsid That still to to you're that I that. one would a and be cure need pools think strategy

of to this address reawaken idea immune And to antigen to low whole that part And to of PDL-X our knocking response response. first. that this S-antigen you're of then down spontaneously, kind overall hopefully, with it And address have the spontaneously either immune going trying some happen necessarily we're you're of betting strategy the immune And, need approach the to there. on activation. going reawaken if case, in no, directly doesn't is

showed full abstract the not that the because additive. they have data at least data strategy immune does in is set that information the of viability J&J still out reported be the of in still rule but need which So the to has piece not the

Operator

question have of you. Bayko line we from JMP the Thank Securities. And Liisa a with

line Your open. is

Neil Panchal

Hi, guys. Neil for on Liisa.

two then are Thanks. capsids? little and bit Roche-Dicerna anything what thoughts more the your else, One, questions. two deal next-generation on say Just you could on your

Bill Collier

talk capsids in good will let two next-generation I questions the moment. Mike Okay, there. Sofia a about

two Roche-Dicerna is On contribute say I to want range, things. think, morning, we a mechanisms this Arbutus, portfolio we actually our potential that, of that wouldn't I that believe in with we to beneficial deal, all, mission, have. is a that the that still and I of achieve strongly rule fulfilling thing the functional But add out would the certainly us goal. said develop help ultimate vision first having assets different shareholders that’s of a mean, I different I'd which goal that think Arbutus heard second do partnerships are action we you've to our

on So, add over anything else before hand that? Dave, to to you'd I like Mike,

David Hastings

it. No, I think covered you

We a are still gratified that our the field. Big in big interest has Pharma obviously

Bill Collier

Yes.

Okay, so next-generation the Mike, capsids?

Michael Sofia

Sure. much I is molecule I of mean, earlier alluded this this some to in Bill think more his potent. comments. Look

the sort RDC of range. animal in single-digit So XX in

there into we So believe you and other out critical go to when potency in here, because be especially therapy. has that to XXX we targeted do relative combination competitors

this potent. substantially more is So molecule

and comes also from distinct theories AB-XXX compounds. chemical from novel other It a competitor

that their with saw looking but head at core hopeful its when that we're potency is and distinct we confirmed interface So dimer finds fact issues XXX crystal provides in by new core novel that raise the structures it other characteristic this enhanced That's series will we're with over new site molecules. look of you access the at. binding a molecules protein, the our not molecule that

variants dosing, were QD that And all is QD critical Also a in resistant space problem, began potentially believe and aspect dosing. forward. this going that way any that the other to address with We this we that issue it potential going We we have resistance. issue an work viral forward. to we on in be the has to characteristics regard molecules a these new capsid wanting, resistance believe key with drug meaning could

it believe and we're competitive We entry. the in clinical driving to be it space So pretty this very bullish on molecule. we're will

Operator

you. Thank Instructions]. [Operator

Nakae question is with from Keay Chardan. Our next

open. is line Your

Keay Nakae

in estimate Yes, best thanks. might give your you destabilizer. Phase of if for I inhibitor your commence studies capsid you when wonder X us RNA can next-gen your

Bill Collier

not specific for start thank Yes, an actual on you the date. question. been We've

I you've we morning think when those this make intend heard decisions. on to

little I to we think be that that clearer. point able be may a

probably we to want you if I as can said say guidance but Gaston, in details, call in or on add the today. Mike again, any earlier there much So think we as the

Gaston Picchio

additional no from agree. I me. Yes

Michael Sofia

Yes, from no me. additional

Operator

the would for remarks. any like not call questions Thank the to queue. in you. And turn his Collier to further showing final I'm Bill back I

Bill Collier

in you look forward of All morning keeping on you also updated And also XXX report on you right. do joining inhibitor, the regarding decision Xa/Xb Thank But and in questions. our you look nomination AASLD interest of your very appreciate for forward for Arbutus. study results much. We you we Thank us capsid to the Phase as as we AB-XXX. future to the and those at development in and make decisions the we next-generation some the meeting seeing go/no-go this Boston. we

indeed much for time you that this your thank our So morning and concludes call. very

Operator

concludes call. you this gentlemen, today's participating. for Thank conference you. Ladies Thank and

disconnect. may You now

Arbutus Biopharma (ABUS) 6 Nov 192019 Q3 Earnings call transcript