Earnings call transcript Q1 2023

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Operator

Good afternoon, everyone. Thank you for standing by. Welcome to the CytomX Therapeutics First Quarter 2023 Financial Results Call. Please be advised that today's call is being recorded.

I would now like to hand the call over to your host today, Chris Ogden, CytomX Senior Vice President, Finance and Accounting. ahead. go Please

Chris Ogden

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

forward-looking I Before We be to filings remind are Because and the risks in would predict inherent our everyone difficult forth many subject any begin, uncertainties they are with SEC making whether result relate are future, outside that statements. the that will to set uncertainties we as of of obligation otherwise. like we our future of which control. to Important undertake at to call, statements, forward-looking during forward-looking to are new statements sec.gov. and recent update developments risks public no and a most this or information,

includes and first XXXX materials, filed to the a SEC. summary Earlier which recent we highlight read and been this We afternoon, of financial today's quarter that issued encourage results associated at have release a CytomX. progress release everyone the press our with press

release, a call the section website. our the be and of Investors and Additionally, under can filings recording found press SEC News our this of

call financials the quarter. provide pipeline today a before and Dr. through CytomX' Chief Sean on first Executive Sean Officer business me With update walk I will for McCarthy, the and the Chairman. is

With call that, I'll over now turn the to Sean.

Sean McCarthy

afternoon, execution continued XXXX to Q&A. I'll an the call update provide key us Thanks, for company's at call, today's progress opening an our everyone. and before joining Good Thanks for the priorities progress on Chris. On update on up CytomX. recent towards pipeline for the

that more as to for tissue will cytokines empowered be future cell potent, biologics. that becomes drug engagers cancer believe as biologic and localization the need Indeed, improve modalities At increasingly conjugates, therapies localizing antibody anticancer more believe important we window. way CytomX, and T become of therapeutic a we such into as the

systemic Probody more benefit with platform to patients by is vision lives for our the benefit. aim leveraging to transform overall high-impact are disease and therapeutics of our that realize We thereby vision maximizing effective localized safer, toxicities to reducing therapies. create CytomX to tissue,

conditionally and versatile Our the platform development, the areas research first has through oncology company intersection the quarter excited and of XXXX. the of walk our of biologics to the most company activated pipeline I'm for promising strategically at of protease-based progress and some during of positioned

the therapeutic QX, we Throughout CX-XXXX to XX the towards progress programs, track Probody treatment advance continued these months. the progression focused for execute to of disciplined portfolio QX to cancer well We milestones robust partnered positioning I CX-XXX than IND-enabling resources, with towards over to with allocation. XX innovative candidates this CX-XXX with while of to more we XX pipeline. through diversified deliver executing CytomX on internal continuing our activities entered of company and and continue next our remain IND resource for value meaningful filings XXXX and intensely Phase With to projected ensuring financial milestones in year. multiple for positioned patients remaining are the on

work maintain to and our to and as biologics been key by taking has has XXXX our candidates translation in start translational the a look the Dr. in conditional promotion up as with into closely next-generation a I her research, our Belvin business activation. Marcia vital colleagues of continued and strategies our just March central Marcia through a continuing of position announced localization Oncology our to Officer CytomX make wave Marcia programs current drug Scientific on clinical pipeline, from Research joined Head to played in Chief key I'd to moving Before moment development of that we of CytomX of also is of Probody like our driver forward success. pipeline. to leadership discovery role first a and today. review congratulate to since My learnings

Now moving of to area solid of in with tumors. start engagers our T-cell the treatment R&D engaging promise activity significant our hold pipeline, like the enormous I'd for to bispecifics. T-cell

unlock the suited great immune system, the of Localization believe be teams we anticancer enhancing to therapeutic patients drugs very potential can the widespread by of this addressing window. lead could modality and activation of the potency the this to for therapeutic this support platform However, ideally with activity on imposing could of class constraints of that partners CytomX Probody challenge. of window, powerful our

with alliance. EGFR leverage in program an broadly targeting as in and lead is responses tumor is Probody cancer compelling and co-development CDX, expressed a EGFR target cell microenvironment. to highly localize the area partnered Amgen global a address to to this and target, a harness a we and EGFR antitumor CX-XXX, T-cell opportunity expression preferentially engager Our see clinical T stage validated

side published making Science Translational of cetuximab, work progress on therapy. CX-XXX We're This CX-XXX in with reduced that and work steady in window approach. this explore EGFR the effects to previous clinic. opened associated commonly the empowered antibody, Our strategies substantially with Medicine a EGFR leverages therapeutic anti-EGFR EGFR demonstrated marketing

We XXXX, successfully and continues of treated study our advance. to first escalation portion the the patient dose in May

patient decision the assess collaboration goal additional certain We tumors have XXXX, Amgen. enrolling CX-XXX to into Phase dosing phase. partner, dose escalation taken our a can forward providing levels We the cohorts. initiation will into X reach of cohorts a and key and Xs exposures enrollment our accelerated the of which XXXX, year. of begin. updates be be safety primary initial dose cohorts, The is look later this II In phase strategy EGFR and study, and the potential we're end of milestone which with titration allowed backfill to positive determination in the of This by in will completed dose expansion single for now

million are across also program to development triggering payment and activities programs, on Continuing We in cell share partner, advancing our future engager delighted milestone retains collaborating and $X and first and receive our the T CytomX. under commercial additional cell option engagers. that Astellas. CytomX a programs our Astellas the This work also Astellas, at also to IND-enabling candidate certain recently were rights. eligible T these to nominated U.S. to is clinical collaboration, and commercial to preclinical clinical CytomX is milestones

additional the forward to our the with alliance, this for we're next-generation potentially goal excited to We immunotherapies. new to continuing tremendous widen alliance. to collaboration be depth our expeditious as kicking Astellas progress bispecific programs brings providing technologies immunotherapy. busy off therapeutic look updates these combining Regeneron and course, collaboration also in regarding in We scientific We've our progress. recently to the look make been Regeneron, of with forward window paradigm-shifting to

platform, known our programs to on work CX-XXXX incorporate upcoming now continuing and been molecule wholly cell advancement EpCAM, EpCAM owned our clinic. next-generation in for evolution high validated by oncology. conditionally also as targeting Moving molecules, as active clinically TROP-X. the in decades the science has adhesion Starting or prior potential INDs CX-XXXX, been others and epithelial a CX-XXX. target of for the with regarded our Probody our ADC building These and and has

by tailored X as of cancer. payload non-muscle protease TCAM in program, has window for Abcam mask bladder We've the therapeutic only sensitivity. a example, been in invasive clinical However, for for topoisomerase with from with epithelial and local tumor mechanism class. a optimize for matching inhibitor the to the cancers is counter molecule expressing this the achieved payload CX-XXXX administration, selected cleavability target the optimized and the action derivative of these activity

a this choice showed The TCAM for payload think we therapeutic and class into strong ADCs, an systemically novel the with the optimal demonstrated tumor and has payload predictive is QX We results HERX clinic studies, including when preclinical models, colorectal an exciting program. this anticipate clinical including year CX-XXXX in and has and Trodelvy, administered this xenograft for in this XXXX. program filing in index wide cancer. multiple activity advancing IND ADC In

program has is alpha-Xb, within localization Interferon We our cytokine to the July tumor in potential broad powerful our their of approved there's to tremendous enhance using checkpoint activity effectively our tissue mechanism in resistant the from and/or demonstrated providing interferon immune cytokines alpha-Xb alpha cancer alpha a believe to direct Moving types. T activity has to away activate antigen-presenting unlock Interferon cytotoxic multiple field. immunotherapy that offering systemic dual by mask harness activation. refractory an strategies system responses and of efforts immunotherapeutic towards with cancers. Interferon CX-XXX, cells direct killing tumor cells combine also may to lead checkpoint clinical and enormous activity, anticancer the inhibition, potential action. activity stimulates and cell

to alpha thus has powerful been toxicity. difficult due systemic of far However, to anticancer its harness Interferon the activity

the index evaluation activity potential year of Pre-clinically, of to a in for this tolerability with We and therapeutic range believe best-in-class centerpiece unique has rapidly wide an to in interferon, filing CX-XXX an with tumor microenvironment. potentially the demonstrated become tumor targeted IND with initiation wide profile and towards has clinical a program preferential along therapy compared CX-XXX combination unmasked enhanced aim this of to for clinical XXXX. we advance a types, QX

international cytokine localized be in a we introducing on versions wholly Society owned Guest which weekend of at be program work Washington, and active exciting We'll on preclinical our the AAI of during conditionally cytokine update evaluation at CX-XXX providing on this new interferon focused an will Symposium Interleukin-XX. our D.C. also

Phase the recently combination evaluating a I/II from and to BMS our study in anti-CTLA-X tumors, evaluating and arm Phase opened XXX, of be partnership later Phase promote enroll into the XXX or to line new they they now year, BMS advancing nivo in nivo that with continues of solid monotherapy this and BMS. triplet to third as colorectal announced study February and In would in Turning cancer. the II, regorafenib BMS-XXXXXX. with non-fucosylated prioritizing I

be to their to Probody earlier CTLA-X of stage have research programs. as as platform strategy edge well collaborate to ongoing a continue the as We excited several leading continue on to

to briefly on work to the receptor. me Let now transparent CDXX, our

ADCs its we've internalization CDXX leveraging long-standing unique anticancer ability and into transport CytomX, due the modalities rate therapeutic properties molecular a an target cells. in to as interest and At other to rapid had of

AbbVie targeting previously in Our regained reacquire We're an additional clinical including option Probody CytomX studies including CDXX steps has esophageal CX-XXXX CX-XXXX rights updates XX% with has encouraging and target also and for due We'll to from our program, potential AbbVie activity, strategies next-generation full overall provide the late-stage full ADC the CX-XXXX. a further recently to shown exclusive response metastatic in squamous partnering rights CDXX assessing clinical program, a cancer. for course. to and partnered CDXX. for next rate

like Cytovix's newest briefly partnership discuss with partner, to I'd Finally, Badr. our

of programs proof yet CytomX pipeline point includes scientific both platform partnerships bring the underway broaden breadth, and to oncology. of with component sites, into company. extended leveraged and and forward has important been core a of with our As outside partnership, our these This business which collaboration of is strategic expertise important reach of in well look progress now model, another areas is validation making the of our Work we've to capital the Moderna this non-diluted R&D. which We in mRNA. novel new extend to

With call that, to quarter. cover the financials let over to the me for Chris turn the

Chris Ogden

pleased you, our on be update an results to XXXX quarter Thank you able Sean. to today. share I'm financial with first

restructuring objectives, position cash, with $XXX initiated entered we and new completed to expectations Based and investments our current March XX, CytomX Having with and a our resources in cash and the XXXX million on fund collaboration operations in corporate Regeneron equivalents Moderna, financial mid-XXXX. our in cash company as XXXX expect of XXXX. research will strong

balance collaboration new as business as examples of included potential agreement. XXXX. in a as result the any ongoing expectations of payments March funding cash access collaborations of $XXX development. nondilutive payment and candidate Moderna a received flow not research million to payments year-end of runway milestone million as $XXX XXXX the $XX under Astellas compared that include as do million milestone cash from underscore Our cash continued million clinical through collaboration of ability Cash well payment the capital quarter upfront or The are and XX first from milestones. our $X earned the received to earn existing These

in approximately Moderna quarter the prioritization. and as for a and of was driven expectations minutes $XX the forward. in few cash compared Normalizing XXXX of for approximately restructuring was cash quarter pipeline XXXX. first primarily quarter, inflows for versus million me let as first quarter of burn the The cash to the XXXX corporate Astellas spend reduction the moving cash quarter the by the burn million on Now first well $XX in our

continue a the we starting including towards As managing on XXXX. rent in of long-term our during focus the we execute XXXX expense prudently execution objectives, facilities second quarter and QX portion a our that of to sublease maintain of reduce will costs, for

overall XXXX expect the we XXXX we needs, and move cash operational year. of balance of moderate down burn go-forward cash as company's to the to Looking this through first to from the continue quarter

for to and operating revenue expenses moving Now quarter. the

increase quarter, $X and with the was the driven first agreement Bristol-Myers the projects revenue was for of earned with the obligations higher the For in collaboration million collaboration under under to compared of the The revenue million company's by in XXXX. CDXX completion completion Squibb, milestone agreement $XX.X percentage primarily with under Astellas the company's AbbVie.

from due expenses in primarily programs. million the expenses a to in well million to as patent-related down activities $XX.X first decreased workforce the $XX.X R&D to expenses compared a compared to the XXXX in million in of in the $XX.X winding by CX-XXXX $X.X first decrease well primarily G&A related as period to million of XXXX million personnel-related and by the to million of as legal XXXX, XXXX, $X $X.X for period decreased corresponding for as decrease reduction due quarter the to corresponding personnel-related expenses in XXXX expenses. quarter CX-XXXX

With to Sean. call that, the I'll turn back

Sean McCarthy

Thanks, the Chris. so CytomX In would team closing, execution again to this I emphasize year. far by the like terrific

of benefit strength from bench deliver in in the big we through to positions to such strategy execution financial True continuously order modalities has bench company bedside cycle invest breakthroughs of CytomX's resulted current engagers ideas in activation forefront long-term as ADCs, the the T potent conditional patients. our at translational Our of and cell pipeline in biologics biologic from depth meaningful cytokines. continued time. potential to for scientific and the and takes innovation with learn localization which

Phase inflection are key intensely our in study and our on our CX-XXX points We I remain particular focus programs. We studies on driving pipeline on well towards focused with CX-XXXX with IND-enabling and U.S. track for CX-XXX. the

forward our attract balance partners, continuing broaden and continued our scientific our to to pipeline allowing sheet new Additionally, look and providing future strength. has maintain valued us leadership work to We updates.

up call Q&A. for With the that, operator, open please

Operator

Instructions]. [Operator

Mitchell from Our Wainwright. first question comes Kapoor H.C. with

Mitchell Kapoor

and to Just expect on types filed, IND CX-XXX. of see of tumor or look label the the kind on Would approved too be towards interferon is we soon is strategy? wanted alpha-Xb design can trial Once ask we to to it what able you for say?

Sean McCarthy

activity targeting in settings, leukemia, hairycell, fact, approval in question. the certain non-muscle as say. active a in interpret lymphoma. local of It's shown renal, too variety little melanoma, highly the mean, alpha Yes, soon invasive And thanks for recently, VPG a Alpha interferon to in more rightly therapy you X bladder of administration being to recently, that allude I clearly the including where XB has leukemias, clinical gene the quite cancer is indication. nonresponsive setting, follicular

places the is are optimal and a alpha we there strategy. interferon number evaluating active, know So of we're currently where

to the course, of thought the starting is our into combination initially, we'll move at with One cold we're known that alpha more be tumors, of up be area a least things of objective strategies. immune lot likely to is, program the I/O responsiveness, to the work this given giving of long-term teeing of types stone, where there's interferon tumors, in potential at but stepping unresponsive a potency tumor

be and So a have to closer the and we'll it initiating we approach, the more filing say will get as clinical IND to study. stepwise

Mitchell Kapoor

to be And need threshold like? then Great. help encouraging the activity into a of activity us characterize expansion would trigger to XXX, you look cohort? Okay. What particular could could what on an

Sean McCarthy

of and further continuing and road we the And with T-cell the really I Phase about in explore evaluating mind, out a keep engagers and study further doses And I question. is the are we're X. figure first down we running Phase foremost, Yes. safety to it's to trying that I Great to expansion with in need stage. think Phase goal

into the with we as and for XXXX, move this dose to tumor goal EGFR potential talk strategies. Amgen, we've the to our with backfill is to So stated partner, program, into in enrollment the cohorts about sit of then as year end And previously, continue year positive expansion by escalation we'll progress certain types. our make initiate

next Now of program year collaboration formal course, our Amgen. moving into with expansions in partner, this with

we're to a in tumor obviously later-stage look weighted principally expectations an studies some the fair say attractive to shrinkage, at it's of also a going But to as this think Phase study. doses I evidence profile tolerability of and is to are our And want expansion course, I monotherapy. in the show to see phase.

Operator

Thank Roger you. next our next And question we'll to -- move Jefferies. question our from with Song comes

Roger Song

from ones Great. just us. X Maybe quick

updates you provide first this The understanding one some year. for will now is later

the Just the curious that what expecting And of around year maybe or given in analyzed is should for do what the the provide? of the or type. going in later But strategy level And be data to CDXX program some you're what this time, start the data will the to update current of follow-up. to backfill are for EGFR what you in second the understanding have dose a we terms the are updates XXXX? the nature you question in related tumor will portion, to you thinking terms next-generation current

Sean McCarthy

for a I to thanks with we'll back in We're have to well. one take regarding may. Those a Not little questions. today our getting the of first, Roger, the progressing And second say AbbVie later year. are if more the Yes. discussions CDXX. about XXXX. whole license new in discussions the updates on lot strategy CDXX I'll

already Regarding this by the into the our is XXX, mentioned, for goal the year, enrollment year. for as end operational goal backfills of program initiate this I've to

with progresses. our to this to towards progress, have. data issuing want as close underway, partner, that's these be any dialogue more and make timing objective we'll that at the further we We're presentations. year get of We guidance So the not guide continuing ready stage backfills

Operator

question. our next for moment One

Mizuho. from Our next comes Mara Goldstein question with

Unidentified Analyst

still can I it's versus options Mara. work that you factors on progress. AbbVie the license On to reacquire for if the in the progress. or developing you on CX-XXXX, Congrats the curious, both on consideration just This elaborate are is the generation table? what can gating know But I'm a a on next -- from back [indiscernible]

Sean McCarthy

are on And and everything as we've that I internal ways to is forward, the table. still about completed Yes, think. potential once say I said, there more our evaluations it think have we we'll multiple

of this CDXX the I a So is program. stay-tuned kind moment think for

Unidentified Analyst

can the you then And it. can if elaborate a features next-generation previous GENCIXX? better Got do versus it what you CDXX, compound for maybe to the you that make hope on incorporate

A –Sean McCarthy

next-generation over simply would I couple working our increasing last been be strategies that put, Yes, the think we’ve of therapeutic further on years window. internally aimed the at

We’re clear for that – with have it’s that we’ve window opened CDXX shown we XXXX. a

to therapeutically We company activity ADC several levels achieve are an tumor of first active types. CDXX with the targeting across

believe reason have the have further we of course. opening to And say window. due we’ll more terms better to that We in can in about again, do

Operator

Morgan. JP have we from And from Anupam question a Rama

Malcolm Kuno

This Malcolm Kuno is for on actually Anupam.

we you then be So when more expect in determination? should looking be for CX-XXX? what will to are to indications for kind about going prioritized which making learn of characteristics that And

Sean McCarthy

Yes. Thanks, Malcolm.

of EpCAM about really as XXXX is love the a its target for epithelial So the expression across one that we things of tumors. breadth

really CRC. of Now, a ton there's databases, is into of if tumors. in that out jumps And available expression information regarding look course, the EpCAM the one you of

in The has payload, likely include our selected get to inhibitor TOPX also with we're once has clinic. So one the mind. into also The lead payload as [indiscernible] selected. the indications CRC very been this of we been

multiple tumor types EpCAM are expressed, including endometrial, highly lung, It's However, ovarian, prostate. other list. is gastric, long where a there

we a potentially of so lot ways there's go. And could

likely of decision the And thinking run, potentially indications. firm in right but breadth. versus we're drug X for what And candidate other balance haven't we think there's in is through that ton of Phase include long to this a I potential on yet, that the CRC, see. very we a made focus

Operator

the And remarks. McCarthy I'm to showing call turn Sean Thank queue. the in other questions you. no for like I'd to closing back

Sean McCarthy

Investor interest have very has this progress broad I CytomX. or additional hope pipeline out much. please and time everyone, CytomX in questions. you helpful. reach for your feel Great. free Well, on to should And this Thanks thanks, Relations afternoon update been to teams your your for our

Operator

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

disconnect. now may You

CytomX Therapeutics (CTMX) 9 May 232023 Q1 Earnings call transcript