CTMX - Earnings call transcript Q3 2018 | CytomX Therapeutics, Inc.

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Operator

Good afternoon, and welcome to CytomX Therapeutics Third Quarter 2018 Financial Conference Call. At this time, all lines are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be provided at that time. [Operator Instruction].

As a reminder, this conference is being recorded for replay purposes. turn Investor over relations. will Vice Christopher I of President that, the to call Keenan, With Please ahead. go

Christopher Keenan

Thank you, XXXX operator. Chief Ray, joining joined us our Good by Executive afternoon and discuss today Officer. McCarthy; company’s thank Officer, the Chief Dr. third and President Financial quarter CytomX financial Sean I’m to results. and you Debanjan for

from including are Before to our information, preclinical the public SEC activities, Sean. recent forward-looking and otherwise. I set developments uncertainties statements making of we Web to Relations will forward-looking we begin, filings be no Because to development which programs. page in site new are turn I clinical are at sec.gov. future, are many CytomX’s inherent and A would this and at of available whether risks call like and guidance call, forward-looking www.cytomx.com. update forth to including of future to difficult research risks that and data the Investor remind the statements result subject you obligation that relate will uncertainties call Important on will the any during undertake our at be outside We predict statements to they this on or now replay over a with as most control.

Sean McCarthy

differentiated which CX-XXX, anticancer for potentially as in quarter the anti-PD-LX our Thanks, program, has Chris, CytomX, we and data a centerpiece good have continued therapy. big of afternoon, for molecule see to first be achievements. clinical XXXX third year lead be everyone. to review disclosed I’m Probody combination a here our pleased to the a we

with effects. the we pipeline, antibodies balance antibody CX-XXX board engineered at ultimately have mask treatment to made the bind to highly and with third its our believe diminishes leverage part across is big that masking steps really is clinical circulation. by CX-XXX which in conference to At detail our the substantial is have the two demonstrates idea are can as year XXXX next comes metastasis. reinventing the the innovative the commercial and throughout summary our We’ve substantially course to Monotherapy for I’ll we target target site, goal our in normal a agent the cell platform consistent about Fundamentally, about masked ESMO. of latest applicable Probodies sheet microenvironment that building more demonstrates therapeutics. first Probodies PD two clinical in classes we entire reviewed sites. inhibitor. allows elegant Mask think to that quarter, of pathway on property we during antibody strengthened modality therapeutic the antibody selectively Web data are data on the over amount follow-on here the review progress continued and binding our Probody a of the learning to in presented and This well designed, generally while therapeutics the and poster associated across cells release tumor company. arms to recent on at press for presentations target findings the masked findings This antibody performance system with differentiated binding removal the both bind mask we presented recently an tissue, in removed available of presented that Specifically, an stage of in progress periphery antibody presented tremendous proteases. tolerated, to antibody namely until data believe ESMO the oncology at protease of our analyzed tumor platform. our healthy The year therapeutic in the tumor financing clinical in as the activity ability we cancer and were our target up are change a of CytomX, periphery. program are These potentially a of were in of and only call, systemic its our the the the on maintained side growth, proliferation, integrated regulation during as tumor first our reducing cancer multiple subject form versatile they recombinant recently with the tissues, a CX-XXX. blocks fully fundamental tumor cancer the at potentially PROCLAIM-CX-XXX is ESMO Meeting. single-agent off is suggest remaining but the we Since Annual way the anti-tumor a the mask this been of from CX-XXX not data in Data ASCO activity of the while programs. June invasion

validate very therapy. a to mg/kg cancer CX-XXX and monotherapy seen potential of dose being seen with with responses we as is several the combination Our escalation. much in full data profile durable well CX-XXX combination X the looks of and The active the deep of centerpiece has ipi ipilimumab. with combination like have begun safety tolerated label ipilimumab is in clearly dose of

Depending at monotherapy, expansion tumor XX types steps advancing Looking more arm the the registrational to of indications is these for our we’re D CX-XXX, dose for in advance the next mg/kg. goal on eight or into one data, trials. at undisclosed Part the

of our Part by important will ipi data the CX-XXX technical and Tumor Results to mechanism presented the after we’re will question describing dose combination tumor the poster as Annual be of escalating XXrd oral from rapid-fire of the Immunotherapy behaving mg/kg an a Cancer suggesting overall guide be or mg/kg in These of Probody action SITC. of the at and week. later a escalation. in patients types presentation presented expansion will picture Society how specific data in the is further X AX exploring Regarding of Meeting have add currently Probody plans completed will we CX-XXX and microenvironment. CX-XXX. XXXX trial XX we’re monotherapy dosing the at ipi this and of tumor on ipilimumab, with for emerging biopsy of I

be We will on results. on these November event be XX, take dive an investor deep new hosting webcast. to This event will Saturday, a also

Now I wholly would like to turn CX-XXXX, Probody targeting conjugate our second owned CDXXX. to our advanced program, clinical drug most

turn strategy overall first-in-class therapy. into have Probody considered can Our drug targets for program effective that targets been explore for we conjugate undruggable our to is drug whether previously novel anticancer

is selection, are is not the cancer normal ADC of for not because, goal mid-XXXX, but We one and gained rationale because the that access CX-XXXX bind Phase advanced another we we’re but cancer. their on X/X great first tumor the antigents presence of clinical agreement non-small with could of DMX to to highly Our and to safety potentially cancer with antibody targets that rules CDXXX cancer, licensed CDXXX there of cancer PDCs present the many types the the evaluating In at drug efficacy of lung the properties clinic. because with Accordingly, conjugates, normal which have many tumor into targeted these for tissues, highly be Probodies and significantly seven previously types. internalize expressed preliminary of way, they cell in cholangiocarcinoma, CX-XXXX have are been they following cancer, in initiated course, but in targets on cell PROCLAIM-CX-XXXX the of surface CDXXX homogeneously and Said ImmunoGen. a ovarian we active these types; molecular break and are of expressed payload, targets tissues. healthy castration-resistant PDC-targeting many endometrial cancer, be PDC cancer, to investigating is designed breast head prostate through target DMX. presence conjugated to mask. tissue the neck have the the and and program the cytotoxic

on PROCLAIM-CX-XXXX, of we the let program when discuss I study. clinical the expectations Before current describe our first the initiated me status

In at lung, GI on healthy types, tumor levels and tissues, to many many being liver is addition including expressed expressed tract. high the highly CDXXX on

X also I’m of a as to the escalate CDXXX in high and we underway. preliminary is at our to clinical range X.XX in on of asked PROCLAIM-CX-XXXX Part In maximum that this of mg/kg. program progressing are patients to DMX, dosing we’re anything substantially exploring With I’m pleased as approaching anticipate comprehensive this well efficacy X dose beyond X in pleased level patients in call and half been a AX of to and safety summary, can Part have dose X, of CX-XXXX, A first we’re dose of safety tolerated to and we of complete. also CX-XXXX first was range. This of we this is report mg/kg. The the mg/kg whether X mg/kg at we arm in is providing here mind, which report starting efficacy X with successfully XXXX, therefore dosing A the update November patients be this mg/kg of clinical to at characterized safely escalated on selected CX-XXXX. have the A Part Parts mg/kg question when design fact and for typical mg/kg. previously from initial the dose we X, for is AX XX in expression has for November that in study well were how pleased

with AbbVie, broadly Probody with to directed XXXX escalation. unique we drug X/X CDXX, We in continued and the to conjugate very of continue another collaboration early programs program Phase this on middle beyond at also have CX-XXXX, an expressed in dose We target. program of are filed In the currently progress stages IND the clinical CX-XXXX. make a PDC for advance and

a license addition, from preclinical under In advancing also CytomX. EpCAM directed ImmunoGen PDC stage at is

October, through on Antibody cancer with directly is European first CTLA-X PD-X Probody immunotherapy presented cancer cells collaboration that focused with More program. have platform on most began done platform in have with since work PD-LX Probody, target last the our expressed quarter work X towards Probodies a turn space, by we in comfortably works and programs. IND [indiscernible] pleased July hypothesis. for after Probody week with and to XXXX another call that preclinically the that on financial Probody, CytomX development. for now recently, we the to the to clearance. over Probody Probody commence PD-LX, Returning against CytomX preclinical initially very the third wholly clinic, great and all announce filed fact, immunotherapy well clinical to marks a has PD-X T-cell efforts achievement done we fifth targets. have at we update In our review checkpoint tumor our This now application this IND expect the team very our moving CX-XXX in ImmunoGen and an fit this BMS preclinical clinically XXXX is the I’ll we Debanjan owned found the Probody seem When Congress, validated comprehensive advancing to we on shortly and three PD-X I’m now Phase now financing the results. targets; With commercially clinical CTLA-X. into stage and and follow-on our to the

Debanjan Ray

Thank Sean. you,

XXXX of let you the CytomX. strategy into details of get our I Before remind July financing our financing, at first me

Our capital between equity to goal capital since early the has of partnerships. the raise company been equally from of and capital non-dilutive days roughly

million since the we offering, capital On approximately from since have follow XXXX, significant that on inception, we told, in over executed In and equity in first capital time. three development All XXXX a at split bringing have latter, capital in million transactions in $XXX July CytomX business IPO, period between equally raise net $XXX upfront equity with public our raised over since of our partnerships. we our approximately milestones $XXX million about done proceeds.

CTLA-X financial $XXX.X net early $XXX.X in The July the $XX net milestone We which received million XXXX the underwritten and AbbVie payment; BMS with quarter program, primarily third the public Probody. the million the the proceeds received from compared the on Now reflects QX in million IND totaling turning as December from results. XXXX to increase filing of XX, equivalents our sublicense offering; received investments is BMS-XXXXXX, milestone and to $XX of cash, of for ended million cash our $XXX.X a CDXX from XXXX. million million $X

expenses expenses Probody balance $XX $XX by therapeutics. strong million for of allows Research and attributable and million to to same during compared million headcount. proceeds to increased XXXX. pipeline increase development to to the in compared attributable cash in continue in offset sheet administrative us to the to advancing pipeline in were fund increased million to are back to partially operations. deep expenses This Our due XXXX our our same our used These to to With increase in XX, consulting development cash were and months months period wrap hand nine The and the XXXX for nine costs personnel-related related XXXX. September in expenses September the primarily maturing ended that, expenses Sean related research increase and was additional primarily XX, General was expenses. an it for personnel-related $XX headcount $XX and an increase I’ll increase period up. an growing ended

Sean McCarthy

Thanks, as we very for our productive CytomX to continue to platform the now like Debanjan. make In summary, questions. and was pipeline. with QX call progress I��d to depreciated open up

Operator

Thank you. [Operator Instructions].

from with Flynn Terence Sachs. Our first Goldman question comes

now is line open. Your

Terence Flynn

Thanks Maybe questions. me. the for Hi. just the taking from two

the any seen percentage in activity question relates spend. CDXXX in Part AX? second just have then either expression? first The Part can of And or this XXXX enrolled then high at to what us And XXXX you patients study, point is A you’ve trial tell the in A antitumor if my Part

if a right anticipate think a wondering sense – fourth any for, to level think up? should Just is level or run what can high you. quarter Is step about quarter about. give us the you rate Thank the the we at third to

Sean McCarthy

is level, expression regard patients. Yes. is Part A so the Hi, XXXX to Terence. for of the Sean. This With in study unselected

So seven expression. for unselected those the mentioned tumor patients as we’re on types, target in I remarks,

know we indications is work work ongoing our However, anywhere expressed in published depending the and upon XX% from to indication. more some own XX% of target or that from these

the In which be arm, to also are is to CDXXX a expect would biopsy patients the be positive. arm, we proportion we those CDXXX AX of patients So requiring high. significant

by is more definition over Our IHC tumor or visual CDXXX of X+ high XX% the in field. of the

levels. expression the that’s So

to have on a this position we of comment the activity time. studies not antitumor and enrollment, antitumor of expect substantially when first present at these safety overview in completed We’re XXXX. be and that in activity an We’ll half to integrated

Debanjan Ray

And Terence, this is Debanjan.

ready operational end into we given of the we’ll the is this not in spend then escalation the see to comment you some XXXX can CytomX On we’ll on of in now we our though year and that by fact question, the spend tell fourth going expenses. is What the XXXX. of XXXX five programs running, on continue quarter which to clinic, four have

Terence Flynn

Can to many Okay. Thanks. solid and follow and if ask cohorts tell on AX? us that how up just have been Part enrolled both tumors? I one Can date, you includes liquid

Sean McCarthy

On Again, and our they your also question, tumors. poster in presentations my part earlier listed solid the it’s of latter comments were all they’re on of on various previously.

the milligrams AX mg/kg. all were at we I they’re And And X November X, of kilogram. So dosing tumors. as arm began per solid as at X mentioned,

to we effectively escalate in So that arm. continue pretty

Terence Flynn

Okay.

are cohorts X two in between and those just it’s or So other there X? cohorts

Sean McCarthy

It’s multiple a capital through up levels; different step dose cohorts. those

Terence Flynn

Okay. Thank you.

Operator

you. Thank

from comes next question Our SunTrust Robinson. Lawson Peter with

Your line is now open.

Peter Lawson

questions. Thanks Hi. my for taking

profile to worried side CX-XXXX, the effect in PDC antibody? you need on adverse drive think think Just efficacy what level you’re you you what of do or about points do of level

Sean McCarthy

and X of mentioned tolerated the or data activity typically for dose Well, for more as about and plus shows for where DMX, published itself well. data other activity generally mg/kg is earlier, conjugates specifically maytansine terms observed in ADCs, I safety, begins that’s that’s that to DMX their talk – if around maximum around as declare about and at minus we published again,

on comment to the XXXX this in point. not position a at We’re program

Peter Lawson

at cancerous you CDXXX be Got high, you you. think high you normal Thank normal deselecting just patients that or for will of about And tissue be will tissues tissue? on then levels as the you. selected ratio versus have looking patients

Sean McCarthy

like not that. we’re anything No, doing

but the expression high reasonably that many on target normal like normal approach. it’s screening any it’s We’re present at the is type really haven’t integrated an of levels, well It’s really all-comer tissues that. standpoint the just from we – established of tissues, on

really if some that can significantly we’re entered escalation saying dose we’ve to design put somewhat And that for because for But speak the and on molecules bringing DMX, escalate point spaces. the there quite principal very been escalate the safely target given obviously we’ve So which we’re able of been dose has we levels in high to beyond to we typical the think that to of encouraged on tissue as study of pretty tissues. go of Probody to this as see MTD planning multiple in goal normal at this up been dose the course in periphery. through the thanks is think I we time, binding does tissues protect the normal study

Peter Lawson

further you. for number molecules the as you what’s to of we and of right then at – of and as kind then kind think Thank moment And or appetite the have about XXXX? partnerships I future collaborations the pipeline guess exit

Sean McCarthy

question. sure try totally not the again? one understand Could I’m I you that

Peter Lawson

of four the XXXX? things you to collaborations you’re And in kind firstly have of number thinking things Just then it’s molecules partnerships? five and if So pipeline about exiting further how on just things, want three the pipeline? or

Sean McCarthy

Thanks. helpful Great. clarification. That’s

clinic have by the the So in we’ll programs the end of five year.

filed just mentioned, I As recently we CX-XXX IND. the

is So terrific and Probody BMS-partnered of versions programs all conjugates, we’ve drug the And on have mentioned asking slightly multiple got CX-XXXX, got the the two questions – questions AbbVie. which Probody, a team of and XXX, and different checkpoint we’ve the PD-X we’ve CX-XXX, got of job the done advancing CTLA-X call we’ve of has they’re the probody partnership then XXXX, course, inhibitors. which with asking Probody

That to in a the In the of have terms programs. aggressive in on pretty molecules clinic think preclinical of parallel. continue said, that’s advance – number to I we

existing those this important comments, business continue point regard mentioned at would for next of additional our programs. and development five stage we been has Debanjan guidance as we’ll an part model to but in be to IND, business file with our future. digest when plenty partnerships, we providing not to the to his on We’re have this With

we’d We’re call yes, cash time. not to fundraising right have and said heard potential additional the in of QX explore is time deals. additional as we’ll right exploring Take lot as There’s sources do whilst well the company it $XXX deals or continue The with which broad. quite one and shots some in But more additional from partnerships the potentially lead of goal have future, We’ve think. any on plus. benefit at partnership partnerships at programs, could also hurry that you example. do always the we of to point additional to an will get potential as a to on program that putting potentially CX-XXX like do capitalized we and the million the over on a platform

Peter Lawson

Great.

much. Okay. so That’s Thanks you great.

Operator

you. Thank

Our with Mohit comes next Citigroup. question from Bansal

now Your line is open.

Mohit Bansal

Thanks thanks for questions A taking and safety CX-XXXX. the for my on providing question update strategy. for broader

remember I these targets you set to normal you So wanted when select of a targets, balance out targets. validated plus

should how you from that broader now or normal going about your you or you targets, to both So will here? be it CX-XXXX, to view think have want think take strategy we like targets data easier forward? these more the Do – develop

Sean McCarthy

Mohit. Yes, question, like first-in-class today refer been mix for CDXXX and as deliberate to that’s as that a of has what the indisputably right the like validated it. pipeline the we’ve And you’re and Thanks designed interesting asking exists really a it the I’d CDXX. that way quite to

On to validated study side, of gone I/O course, validated the targets. we’ve further

the targets new clinical in of seeing has agree moment. of would level I years. at that disappointing bit with sentiment we we’re of last the all of the a I I/O market validation some couple over And emergence think think that the been

I/O this. for eye that see window, close honest. emerged to whole where improvement we keeping room it side that a either very as we we’re not and there’s welcome on us has be therapeutic may So But additional in excites targets there’s on the lot a

continue The potential. as us. where two, first-in-class bispecific enormous to in on we’re high you see be of engaging know, And interest we working format, targets then T-cell very the between another Probodies,

leading of do into technology bispecifics advance safety the and Amgen edge you T-cell straddles think. as very a clinic. as what of together our increasing the on EGFR the is clinic which is one’s we it our CDX. validated the well can them very As effective into we we know, kind In put both in efficacy get and a side, as the collaboration, No way of validation can EGFR-CDX, to target move

a the with validation. there’s ways lot we go can of additional we So think technology different we as gain

Mohit Bansal

Thank it, you. Got helpful.

Sean McCarthy

welcome. You’re

Operator

Thank you.

of comes Our Bank Huang next Merrill question Lynch. Ying of from America

is Your open. line now

Unidentified Analyst

on guys. for Hi, Thanks questions. [ph] Alec This for our Ying. is taking

So I’ve two. got

your abstract did The antibody microenvironment program, periphery? tumor first but I you for the naked the that’s versus measure from for the CX-XXX cleaved the didn’t SITC, in of levels see

Sean McCarthy

occupancy. of what a we will on what activated to investor event measured. at abstract all see of are percentage you’ll detail receptors of the receptor translation presented to this our of is is see in that directly And unmasked in in abstract right? occupancy, SITC of be Probody, – at which the activity. antitumor end Yes, calculation in receptor amounts And sufficient is the of what Saturday you’ll about, considerable and day the which measuring is occupy in the levels terms need intratumoral into the the description We sufficient of drive

Unidentified Analyst

of into of great. should you. next the data CX-XXXX the And right trial how as have the of year, first what And you many now? Okay, patients we sort go half we Thanks. program, length expect? and up Thank of follow do kind what for on

Sean McCarthy

to numbers patient early too directly. on Yes, comment

course, As both I is three of program, a be mentioned, across arms. we’ll That on plus a safety next standard comprehensive this efficacy, half update and said, the year. three giving both of design first

can of the of you you envelop prior our number presentations. some poster So back of patients at kind look the if of

Unidentified Analyst

you. Thank

Operator

Thank you.

H.C. with the here, Our from Raghuram I Wainwright. next question, wrong I apologize and if get comes pronunciation Selvaraju

open. now is line Your

Robert Burns

Burns Hi. Ram. for This is on Robert

for taking have for really may. I and update two, my thanks CX-XXXX just questions. I the So if

then into the metrics what, CX-XXXX insight to question say, hit know you related for you further? And you’re which in provide you is can the second CX-XXX. to looking So let’s program advance some this

indications trial. Can color there there that been modifications specifically additional to you that link Are from pursuing dosing, you in relative protease schedules dosing looking are to clinical at? thinking noticed the And you’re to indication? I specificity any as about provide is expansion now have the what cleavable the different CX-XXX? CX-XXX are that So Thank alternative you. some with trial compared

Sean McCarthy

the questions. dose began X.XX has as regards safety. With Thanks. was this in to mg/kg, and that to first Great of at escalation mentioned at course initial A, very I with XXXX, Part been gain earlier, unique designed principally very, man look to our designed experience agent

So anything the call, can successfully safely? We encouraging. is because are approaching to at know is escalate we dose this mg/kg, the yes enrolling MTD for already we’ve that which DMX on to we very as question reported conjugates answer XX patients

the X a – Part safety, principal of course, goal the So escalation. AX, somewhat. here we’re A the of is population focusing dose patient and Phase

a expression. We’re target high-level selecting for

We’re then next should Part we say dose, level once the AX. a arms other, way beginning can I prior we the higher interact cohort And in cleared way a dose the by to that A, clear at that in to go cohort, can mg/kg. X – we each that with we two progress these then

wondering right we’re any in that, of one going in at mg/kg Part reason A XX the that’s about there. on you what’s level dose AX. So If that and that’s behind now Part were

ourselves goal. initial safety because A, activity the safety designed target further expression. Part So and explore to antitumor evidence opportunity AX of any give is we’re for selecting for the is high-level

done before. quite point. this unique this at that on No guiding not we’re one’s agent. like is metrics, very This specific a anything of terms In

see wait to we we have I what and see. think

filed. terms so In of is CX-XXX, IND

with initial we’re did we near population the XXX to patients, be at start cleared to would look on as term. where don’t the clinical safety with the that the at fairly to other Assuming as CX-XXX through design enrolling a say dose we this in we the from be in want go look And patient stage molecule to relatively there. kind will to and all do than to of that’s escalation I move see to that swift likely goal comment of

Robert Burns

so one just lastly, was then that just And say you. want the to Thank I pretty [indiscernible] Debanjan Awesome. awesome. to cost

Debanjan Ray

Thanks.

Operator

you. Thank

Biren Amin next Our comes question Jefferies. from with

open. now is line Your

Biren Amin

Thanks guys. questions. my Hi, for taking

have can correlation that detectable the expect the to intratumoral to many levels we abstract, expect response evaluable XXX On Sean, rates? the think in on SITC at XX presentation? you And available. abstract of biopsies I poster time How have of you in do the are

Sean McCarthy

Biren, very the never particularly ago biopsy weekend sure. that sure would is The additional time thanks be the how and access appreciate patients at in for for has written nicely early abstract program the the the program some progressed development. material question. presentation to has say There at was – can will company. these And clinical challenging it I early that you in biopsies be Gaining I’m easy. the

know So tough, kind correlations but weekend. we��ll we of tell getting those the you what at

Biren Amin

can regimen think that that you’re your escalated indications based I And some with initial Do you’ve plans that as a data dose monotherapy or seeing, would XXXX. do nicely it. AX what Got in to on combination? on in agent in you potentially evaluate feel you forward then the XXXX, on move cohort. this just want get are sense a you tumor you

Sean McCarthy

I this comment Not And first in more Biren. a 'XX. on said, of as picture half we’ll integrated point, at ready present to that

Biren Amin

you. Got it. Thank

Operator

Thank you. I’m showing in no further queue. questions

turn back conference I’d So the over to closing for like remarks.

Sean McCarthy

thanks for Thanks Great. the very and much, everyone joining call.

As year lot extremely very forward productive. was earlier, technology, had aggressively. learned I We’ve unique. productive very really mentioned we’ve QX pipeline company. at the this been our moving very about which We’ve is a also a

additional therapeutic by progress to antibodies different. We’re you the interest the we’re Thank we’re for with has take before offline. one very questions doing encouraged much something very across happy done board. and and this your No support, and

Operator

participation. Ladies gentlemen, much you. for does very conclude your Thank you and that Thank conference. today’s

You may now disconnect. Have a wonderful day.

CytomX Therapeutics (CTMX) 11 Nov 182018 Q3 Earnings call transcript