ABUS - Earnings call transcript Q1 2022 | Arbutus Biopharma Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Arbutus Biopharma 2022 First Quarter Financial Results and Corporate Update Conference Call. [Operator Instructions]. I would now like to hand the conference over to your first speaker today, Lisa Caperelli, Vice President of Investor Relations. Thank you, and please go ahead.

Lisa Caperelli

operator. you, Thank and XXXX everyone, for Arbutus' joining Good Results thank and quarter Financial Corporate first morning, you Update Call.

from Chief corporate by Hastings, Scientific Officer. Joining Collier, update, Officer; and Gaston followed today the will Sofia, team Development executive me Chief Mike are Picchio, President Chief and Financial begin Executive Dr. Chief David Bill Dr. Officer; Officer; Dr. Arbutus Bill with a

on the Sofia, provide our first provide who update preclinical then results. of an Hastings call up financial we a Dave XXXX Picchio for review remarks, Q&A. address to will company's clinical-related available the programs. quarter will opening Gaston will After be questions. will open

most XX-Q now other quarterly today we'd Before our with recent call are time XX-K, some in SEC. annual remind which documents on filed including the of are subject like described Bill. to to over that from a the to call and to and results will I be in you those cause forward-looking to today the may we to uncertainties that our time number statements, report statements begin, Form turn filed materially, of on differ risks actual Bill? report the later made during

William Collier

morning, us. Thank interest joining Biopharma. Thank continued you, Lisa, and good appreciate We Arbutus everybody. your you for and in support

deliver on hepatitis to with programs. release chronic XXXX As coronavirus track corporate multiple across press we in our first quarter you are morning's and this saw financial and key B update, our on milestones

discuss projected second runway or XXX with importantly, year. we well call, are trials data either XXXX. In as later quarter XXX cash that a we this And anticipate financially are X clinical the this in positioned reporting into of fact, Dave will from during evaluating

towards the proprietary our Mike like achieved of to through highlight to Now to strategy provide in our some progress X-pronged cure advancing has to a for over run I turn the infection. progress research the HBV early compounds, the functional call team Sofia we've made before HBV I'd chronic

an of and X-pronged reducing XXX, that trials in trial lead care, and in trials a to third assess activity, clinical combination increased investigational begin immune know, therapeutic. DNA HBV response. immune HBV-specific being S-antigen, a has this currently suppressing system. approach together Phase in X HBV To evaluated RNAi XXX compounds some approved you reduction date, proprietary shown XXX, the other clinical standard expected As In analog further our consists S-antigen enrollment with patients, sustained to Starting with compound with our is nucleoside boosting of in or IIa with shortly.

initial in second the report HBV. first year is in The to tolerability with and XXX This trial, is continuing is patients half chronic on AB-XXX-XXX plus of track trial interferon XXXX. of initiated patients and enroll assessing last safety to the NUC-suppressed data

with second that The of Assembly's is Late fully evaluating the was by vebicorvir. enrolled trial trial reported and Assembly this in conducted in with XXX XXXX. core first being quarter, Assembly the data half is second Bio expected inhibitor,

of antiviral the after trial this activated in safety, Vaccitech's plans immunogenicity activity XXXX. evaluate placebo and therapeutic dose with trial, third The the patients to vaccine being half for XXX, HBV AB-XXX-XXX chronic or administration are Sites will in of of patients. NUC-suppressed again first

learnings last HBV. follow-up received milligrams clinical as It as functional patients milligram compounds in and include data XXX include IIb Phase data also As I, year. cohort e-antigen medical data enrolled HBV or We X DNA which data make AB-XXX-XXX and That One will cure K, albeit XX discontinued cohorts every then seeing for explore looking to the that subset that about like E, as be assessed These I'd glimpse additional of X, or XX to for XX cure will potential to trial, X patients of completed these We're the treatment as treatment and on-treatment can forward trials, new new are milligram well goal IIa long-term focus weeks. weeks every reporting on in additional we Phase Ia/Ib we XX combination J. discontinued for therapy. a who have of is conference our XXX cohorts point to these positive for first data F, best small patients. key explore patients developing G, anticipate from identify negative in we a with XXX. into and utilize data, data a will in the clinical Phase discontinuation the XXX this functional this at patients

on our NUC oral reported designed addition, DNA. combination inhibitor, our Now reduce Preliminary replication to AB-XXX-XXX to we next-generation track AB-XXX, with XXX has viral the eliminate safe in in trial from is that antiviral clinical of robust that therapy from shown last provides capsid XXXX. well first and data HBV in trial report is year tolerated generally data and half We're this activity. and

efforts. to future on outbreaks. coronavirus to COVID-XX developing on new treat our coronavirus identifying antiviral and We're and Now focusing moving small molecules

into viral continuing efforts optimization focused activities replication to nominate protease studies year. nspX to We're nspX candidate. or advance candidate that nspXX also protease are continuing critical essential clinical and research polymerase all move nspXX polymerase. can on this the Our for IND-enabling X an our we for an across targets coronaviruses. Mpro We're efforts lead

compounds in throughout oral assess opportunity of Over the forward potential advancing turn the Mike. you, look Mike Sofia year. I'll on team the Finally, over PD-LX Arbutus assets. HBV progress continue our the update I'm we our in for an now program. these sharing call to that the Dr. proud to really data preclinical with and oncology to to to continues make

Michael Sofia

of oral you AB-XXX, we are like year. RNA goal through selected AB-XXX, compound. have half and destabilizer, studies which undergoing this second to studies important and X with of Thanks, those walk destabilizer in as the we how Bill. our In of our IND-enabling history assets, with HCV I'd preclinical the both AB-XXX space, currently our Starting AB-XXX the next-generation completing RNA

acute B, host This to of levels in doing a S-antigen the proof-of-concept functional a RNA Mechanistically, for so, several involved could transcripts. inhibit degradation cure small destabilizers RNA activity believe we treatment develop quest in by So proteins, RNA a multiple the studies regulating models. to proprietary RNA molecule providing thus, viral destabilizers preclinical In of stability and, target HBV animal of destabilizer in for destabilizers RNAs lead and is reduce PAPDX hepatitis HBV supported and replication. the RNA oral chronic necessary provide always which regimen. that piece key our X, are

to findings in and species. destabilizer, vitro action potential conducted has model. in of an preclinical the mechanism in all of for RNA We is we in to Despite production B. inhibited oral on first-generation this vivo still AB-XXX, X [indiscernible] based development study that setback, Our compelling hepatitis safety using patients XX-day therapy destabilizer an peripheral neuropathy discontinued RNA believe and HBV lead compound a the AAV-HBV observed this mouse with

for was any the important to chemistry this on AB-XXX. Our the peripheral not mitigate RNA This seen had AB-XXX. differentiated compound that earlier vigorous to The new reduce research strategy competitor focus liver-centric but neuropathy was compound oral destabilizer to destabilizer. free only compound efforts systemic with compared also and the of next-generation led compound chemotype development to RNA our exposure us or this a of AB-XXX,

wanted seen the first-generation as we compound was addition, on activity the to with robust destabilizers. vitro. In maintain selected based to antiviral in antiviral the AB-XXX advance potency seen

show against examine issues active serum It in in potent conducted. avoid antiviral the of observed toxicology HBV studies activity orally approach liver-centric the AB-XXX to NUC-resistant was our were this products PK plasma versus whether HBV viruses when against high models. in compound activity production liver neuropathy To maintain AB-XXX, models. that reduced was other AB-XXX protein could and a multiple Specifically, selective that multiple ratio in mouse across multiple It cell achieved X specifically, S-antigen administered viral species. many more AAV-HBV earlier These ADME, HBV genotypes, peripheral showed all and inhibit variants.

ADME the particular profile. on improved end, and in believe set that PK bar of AB-XXX as AB-XXX neuropathy we showed Our that undertook meets compounds high it the to assessment safety studies vivo we profile focus that extensive demonstrated In proper non-GLP concluded a an an several development studies, safety to with compared that profile achieved we cleanest concerns. agents and To desirable the related AB-XXX.

the GLP AB-XXX. safety our We issues XX-day further are address with continuing AB-XXX, our to conduct IND-enabling studies studies with to seen in species to strategy belief in including X confirm

All of compound safe to we to confidence into intended that these studies trials. have give move a clinical us are

that virus The that immune can AB-XXX. infected moving cells. infected strategy highly oral system We HBV-specific HBV immune patients It are viral HBV recognize reduce is do inhibitor. to that believe long-term cells tolerizing achieve of tolerized HBV-specific S-antigen to reawaken with functional agent the can believe [indiscernible] agents has agents the immune or with and a cure PD-LX AB-XXX, we this required. molecule T functional the control, To Now we our small been system. to long-standing further our on combine

was our safety. We compounds Hastings an such immune and functionally underway. candidate becomes sharing and HBV-specific as preclinical a PD-X, in PD-LX had will during that antivirals look PD-X, cells vitro immune Support block play it Dave combination and studies number to Through break these one approach to selected on activation. both more T this important the in defective immune IND-enabling approach animal call in HBV-specific HPV-specific tolerance. efficacy, I other throughout over cells role the However, tolerance are to update. of infection. vivo maintenance where observed studies restoration, year. financial in a with clearance on direct in of preclinical efforts the as and model Immune with PD-LX, viral potency, checkpoint and Dave? HBV work, reawaken we research in T for hypothesize selectivity now currently cell based and is become turn the as sustained suppression. induction both Therefore, interaction chronic to protein we available hopefully DNA lead brief checkpoints T blockade in greatly forward for reduced data AB-XXX

David Hastings

Thanks, everybody. good Mike, morning, and

the metric I've and runway. in mentioned financial past, As our is financial key cash

of investments XX, to March million as Our was approximately XX, cash, equivalents XXXX. as of approximately $XXX.X and as XXXX, cash $XXX million December compared

XX, China, March $XX ended proceeds in Now months were gross payment equity used $XX.X $XX cash we agreement for during from inflows partially Pharmaceutical upfront investment our AB-XXX in of XXXX, million exclusive These of $XXX,XXX the commercialization X million for license received Qilu from cash million by approximately ATM. Qilu's from offset operations. the of proceeds and a Greater

sufficient XXXX, to net and in $XX of including a cash from the of received believe operations million burn not be Qilu the fund $XX runway expect our cash We million million between XXXX. to into will $XX quarter second proceeds

at Now recognized that our the our time, accounting transaction, Qilu premium equity license technology tech investment are in years, on expended will supply. of on under license over including terms hours transfer currently the assistance as perform be and estimated we obligations X transfer the by manufacturing for upfront clinical revenue to our deferred based agreement, employees and labor and drug

of recorded COVID-XX cure well that, treatment call million hours and based turn for So outbreaks. incurred, will I of future develop for are a with our positioned And to $X.X we a back Bill. coronavirus In XXXX. to and mission in Bill? functional on the to revenue quarter we advance financially the potential closing, HBV first

William Collier

I Mike to for think very the you thanks session. Thank and Sofia we Operator, can question-and-answer up as lines now Dave, a well. open much,

Operator

[Operator Instructions].

from line the Buchanan of Securities. JMP of comes Roy question first Our

Douglas Buchanan

going I start on program. coronavirus I'm to guess, the

opportunity forward you me think the do possibly primary use polymerase, larger shows the as the believe. for view and possibly bit, targeting you care, but government against of protease more broad are across if too common And kind cold the used you opportunities a the stocking? pan-coronavirus in the larger same as guys just far the tell Or Can a just coronaviruses? hospital something looking the potentially I level protease? then conservation maybe of polymerase You approach both coronaviruses

William Collier

one? first the Mike, like would you take to

Michael Sofia

Yes, answer first part. the right. I'll

we when are because coronaviruses. we both these So conserved across highly them known chose X yes, chose targets, all

So still the protease main of idea paying a play coronavirus and all one for for both us. nspXX polymerase are nspX in pan-coronavirus viral

at yes, strategy. are we pan-coronavirus So looking general a

Gaston Picchio

wouldn't at to strategies but coronavirus be of And be first, it look to impossible the well. prophylaxis as about approach would prevention think treatment

Michael Sofia

Paxlovid, would at an I compound add we that. on any into. to which enter just to certainly, look now mean but on is hospitalizations, question that been not like to I think shown has you to did Pfizer the have area pre-exposure if reduce prophylaxis, effect

Douglas Buchanan

maybe and ritonavir need to going et cetera. have not you'll you're better assuming I'm Yes. accessibility, lung

discussed like the if I is like guess but compounds. sounds you So question correct? -- Is not to neuropathy the -- XXX, effect. that previously, on-target of on guys it looking have is conclusion forward next I'm generation the sounds sure The it that this an

Michael Sofia

haven't certainly, a why mean, we I our the get liver-centric as overcome If minimizes today that. we that peripheral concerns. definitively to data we to neuropathy point Well, can we seems exposure, accumulated And that we peripheral described developed the proven that's believe it. strategy agent But can was we have that.

Douglas Buchanan

Great. the serum? And liver the have you for guys Okay. the of amount levels the disclosed to ratio

Michael Sofia

not have disclosed that. we No, yet

Operator

comes question of Ding line the second from Jefferies. Dennis Our of

Yuchen Ding

decided you treatment? of steps data assays you of run of taken will second get how biochemical Can comment far? I what coming you X are next Two talk measure B. is you in the to at cure the the when the about guess, preclinical drug? need questions just hep this of And take yet that's the II Have then in guys work versus number on of potency off terms for functional you have confident to Can guys me, you specifically, have be drug protease one And potency? and end the please you Paxlovid? so patients patients triple on the done my question data? profile duration the the combo around are And inhibitor. Phase year to

William Collier

protease. then the Gaston, Sofia Okay. we'll want Dennis. the up Thanks first, you follow questions, on for to your Mike have do and take

Gaston Picchio

you. Thank Sure.

X That we have in the Assembly. treatment year, studies, patients. on terms It Phase enrolled. And the of in one data. end has presumably ones, is collaboration study one now IIa the is with fully of will triple by the So XX

we have on That's will longer, we data of end a We but -- believe not meaningful will going data treatment. to but have the at take therapy. it's bit the

the expect, In treatment -- see whether result of but will not. we terms obviously of or will S-antigen. directs that the what that we And to we on and it's hopefully, say, combination a deeper obviously, happens little the hope of X mean, I bit premature of addition in or the loss

study. I In a smaller hope some That interferon, the have think with in as terms we that's is the data year. triple to relatively of preliminary well by end study and on-treatment And enrolling, the of more mean, I stopping stopping for response both already will Ia/Ib based to the your importantly, study, we call Phase we our stop criteria question on patients it's patients, about, when studies defined. patients, but that

trying is criteria -- those we're As multifactorial, important I is after threshold therapy the and decide to but mentioned therapy. than elements one and NUC before, functional And ready therapy we're the is patients NUC patient less stop S-antigen, the the obviously, assess following stopping to using of NUC to cure. of XXX after

for Now is therapy. although to happening decide NUC not the whether point opportunity to And one in to stop not NUC they what offer study and patients that doing was thing I may amended want is obviously, want study we're stop Phase uniformly the everyone opting out all to criteria. patients. they therapy, The meet I across to the investigators

cannot how we I will be in define patients presenting exactly the So future. many

William Collier

And All on the Mike, right. protease? then

Michael Sofia

Yes.

So your we the do. question battery so have answer protease, a to of that studies we about whole

do. say, let's studies other other we protein Mpros So the that but activity intrinsic also coronaviruses against a Mpro, or, also but from of set do the SARS-CoV-X, biochemical representative we

not say, how this that do have Again, we but binding. against biophysical in these lot only of, infectivity whole sort to other ensure molecules studies again. we activity. that coronaviruses. get Then the are So We compounds pan-coronavirus assays we a let's understand we study SARS-CoV-X, cell of of vitro sort of sense it's

co-crystal done structures. X-ray have We

where this bind time. future, know And as obviously, sort focused agents and to optimization certainly, that main of targets, apply compound. helps are were not doing it do how us other concerned, of continue of possibility, some we into infections target we that the looking pan-coronavirus, sort SARS-CoV-X guide they but SARS-CoV-X coronavirus the So we're as lead the could coronaviruses so potentially at a are other work with current the certainly one on our to our far but is SARS-CoV-X these with

Operator

line Our H.C. of of Ed next question Wainwright. comes from Arce the

Thomas Yip

This a Ed. for Yip is questions Thomas of asking couple

combination focus was regarding question there? XXX-XXX to VTP-XXX patients earlier. over And first discussed the more go specific Can with some the details study? study expect of So How geographical any many that we you be in the also should study?

William Collier

Yes, Gaston?

Gaston Picchio

Sure.

dosing VTP-XXX with and a get is sequences. HBV combination HBV study then causing vectors. One placebo. So where then also or of patients IIa start we randomized that's just [indiscernible] The sequences receiving X Phase into causing and is AB-XXX VTP-XXX different MVA a

the countries the already unfortunately, regulatory as achieved with the that in Vaccitech. the study some initiate in one collaboration approvals selected the to screening we is given the So everyone of to war, was The and in being we be But not that start done will able And study obviously, country. knows, randomization countries. different has study Ukraine.

are we So other our jurisdictions. into now shifting focus

We have randomizing also to are going are screening other other soon. given But where planned can with fast as and countries we that very and to possible. identify that move were we be as the trying the in uncertainty patients Ukraine, countries loss already

Thomas Yip

expect therefore, one clinical over decision ahead of with XXX Understood. I the the second And half. regarding superior earlier you of the future which than the believe details others, questions move we point combination expect study. the in for At combination which Got would was that the X Thank and it. to data studies? in is then begin regarding one initial more a there we to studies be

William Collier

intent. the That's Yes.

additional if, add you know want color. any Gaston, don't I So to

assess combinations. a of can can think to role the hard play we're variety that tell working different that XXX you try and I in

much be a position go-forward through, the to the in data combo. Gaston? once comes So decide better we'll

Gaston Picchio

depends make -- wait path for then Yes, interim longer to size mean would think data cut, it's a then decision clear decide data could it's the question. If is the data, at the of I really. worth the to not risk. bit little a the one you other. challenging or have a one whether example, one spectacular, of pursuing I on It the eventually data, be

be very at data say mean, really, So -- answer is can question it to is to it's I difficult thing driven. this And going point. the only a I

Thomas Yip

the forward this We data the certainly to look half second year. of in

Operator

Our Brian Baird. line question of Skorney comes the next of from

Luke Herrmann

Luke for on Herrmann is This Brian.

the plans? in other most informative points existing any beyond XXX, going Or prior preclinical data point data future the on-treatment any of see to off-treatment durable might on then us to the the there And are be once chance IND-enabling be of the for studies here, done? For indicative be IND-enabling of a is the the combos studies? reassessed Or are result there could that you that will data really that is a think effect? we data

William Collier

Okay.

then for Gaston Mike. So the first one,

Gaston Picchio

Great because on FDA final think development mean question. issued I drug question Yes. the X, the look you the recent continues if April it's by on HBV endpoint. guidance the to be interesting at I main very S-antigen

core-related Having running other important interested in those as, will such everyone very HBV S making not RNA a but are decisions. role that, antigen. role everyone as in certainly said knows, play we And to, and limited So markers markers. central -- is

a bit predicting wish. is little treatment that recent some or of of a However, the little in on There if mix. functional provide loss if of response are bag terms a markers read S-antigen publications, you regarding the may mixed these cure, you durable of bit I there a mean, value

in their S-antigen. at as things, whether can't beyond certainly, is going are point trying include tell including biomarkers value But So I be we time. as to this we're possible, to really it proven. many

Michael Sofia

the Yes. XXX. meeting that to scientific And on to possible present some not-too-distant it in superiority XXX question. data the we is demonstrate future, the on would preclinical Yes, a at of XXX

later a that year could of are a this opportunities clearly So that disclosure. provide is couple that There possibility.

Operator

JMP And Securities. Buchanan of next, we have Roy

Douglas Buchanan

I think you XXX? the if give at presentation XXX data Anything color potential it X wonder there's just going the I the for on K EASL, be abstracts assume any I quite Is there? you to could there. on a data possible said bit. us see to -- cohort

William Collier

I'm going Good one question. that throw to Yes. Gaston. to

think X the I EASL some we I have in that based presentation. press Gaston, had submissions get release produced. we've approved is But color what what additional you on said think for can

Gaston Picchio

Sure. Yes.

obviously, disclosing mean, Roy, if go that cetera, So you it reach about need -- to what we very careful to to is don't we're et cetera. going we be on I presenting, be embargo et the

you our sure end. that from I'm appreciate So

to see approved of can back anyone if So it EASL orange of that will did website and there goes -- that the EASL today, the in that all abstracts first were but list or is you the an December. you link round acceptances in

range inhibitor. you one So et in see out of and there's inhibitor. siRNAs. on abstract one are activity some -- that response the list. aspects of on And of and or we an announced, of durability on X of that there, X And our included from AB-XXX, are will cytokines, X checkpoint then preclinical there is those XXX that there XXX, And PD-LX And -- immunology capsid cetera. there's on our

titles and the you are titles about. all read if can read So titles see can anyone what the and the

can I X presentations, much in the what actually really to I other with going cannot we're say recently deal including how that's disclosing which So XXX. say. or accepted be

Operator

of Our the next of Nakae from Chardan. Keay question comes line

Keay Nakae

XXX? status Gaston, for Yes. can enrollment Part X on you the us of update

Gaston Picchio

enrollment X including forward the I see, we indicated, of disclosed Part at XXX to haven't our status studies. we But presenting least looking cohorts. and you X data as We of will mean, are as

Keay Nakae

Okay.

X? be different So cohorts in it the next X presentation for data XXX, will patient for Part

Gaston Picchio

be sorry, X, everything but -- and in will X included. a Parts mean disclosure everything on it back I because will made December Part include yes. we X, Part X,

Keay Nakae

X different dose next Part the release? data from Three in Right. levels

Gaston Picchio

that -- December. Yes, in the back the design we basically, presented was in what what this included this is is in included was

X the presentation. Part will Part and So Part be included in X, X

Operator

turning in to at now coming CEO call Thank Arbutus. back this time. Collier, questions of further Bill no you. I'm the are There

William Collier

questions, programs We forward your we as Thanks and your and for you, our updates appreciate thank Thank you further interest, us report for said, concludes data clinical you joining and thank XXX very providing thank this with advance additional clinical XXX conferences. you at your obviously upcoming continued for call. and to everybody. And much. That and our we preclinical morning. assistance. operator, medical trials our especially look that from And

Operator

concludes This Thank for conference you. Thank today's call. you participating.

You may disconnect. now

Arbutus Biopharma (ABUS) 5 May 222022 Q1 Earnings call transcript