FSTX - Earnings call transcript Q3 2021

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Operator

Good day, and thank you for standing by. Welcome to the F-star Therapeutics Third Quarter 2021 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ms. Lindsey Trickett. Please go ahead, ma'am.

Lindsey Trickett

Hi. everyone. morning, Good joining for Thank us. you With me Darlene our and Eliot our is CFO. Forster, Deptula-Hicks, CEO; today We results XX, XXXX. announced ended year financial premarket today the for September

can Investor on website You fstar.com. press of at page our the the access Relations release

through that These Before Please also forward-looking include guarantees are statements of to statements discussion to place call. not are strictly arise of undue note the on the quickly be results will future cautioned part in statements. could forward-looking and today, detailed should a materially date SEC. not in risks that the management F-star's any statements. hand that we you filings update as risks call are statements with events risks I'll company number making of forward-looking to order to let's and get our may are that started, actual run therefore, that or after obligation Eliot? uncertainties that, forward-looking of and undertakes no constitute performance, statements the subject not the a them. historical uncertainties from conference circumstances reliance cause forward-looking Investors Such to differ this The reflect These those anticipated. With Eliot. over statements.

Eliot Forster

Lindsey. positive been F-star's you morning, today what's provide months. you Third Thank and It's on thank you, to three in Good another with speak everyone. corporate Quarter participating Call. for and Welcome, great XXXX Earnings past a update

past keeping demonstrates successful our quarter, clinical since becoming financial a an activities, first, expansion As our in our But our I'll programs reflect year quarter all the partnering important reviewing first public well also further as in plans. of of and this with this on advancement past company. our progress

non-small program, B a a we're and lung initiating in of naive growing advanced most FSXXX, our large cell confidence trial demonstration lymphoma. checkpoint patients cell our inhibitor cancer with in As diffuse

dual-agonist, excited program the is belief And Phase in larger and XXXXX, impact we're I'll update, STING FSXXX and providing encouraging. last this SB update in its this our first-in-class in at reinforces X specific patient earnings highlighted Phase progressing today, next-generation groups. our its while our trial. As quarter our Progress through potential progress FSXXX, a well clinically not in are respective also make be to trials. ongoing X their And further agonist,

license novel as and $XX.X billion, F-star tiered commercialize our technology product our research, royalty-bearing generate As joining to $X.XX on transformative Janssen to platform, to and terms established for AstraZeneca being year of the in and with F-star's into is agreement & having the And partnerships a to of well worth deal we've three We're partner, since a royalties been Since It's then, in on NASDAQ. sales. Merck was spite listed newest delighted F-star have almost Denali Janssen AstraZeneca as programs Therapeutics. leveraged the commitment added immunotherapies also new in and COVID clinic. Janssen. platform with resolute been we've we've our patients to potential Janssen license pandemic, our including cancer, as and exclusive KGaA, the develop into Johnson agreement, Under of important up Pharmaceutical new further and grant using up and Janssen entered validation five Johnson. million upfront Biotech, will one proprietary a Companies worldwide technology. with a collaboration the bispecific of platform antibodies The of payment

some in in directed clinic the the next-generation targets towards LAG-X and promising CDXXX. of are four immuno-oncology immuno-oncology development, therapeutics including Our drug most

the new from analysts. and we've platforms biotech from our strong with of We company. patents coverage attracted investors start, leading group base a programs or respected And And and strengthen the over protection pending. joining seven granted shareholder XXX a a finally, gained we've to continue established with standing of

create binding. call in between Cross-linking and XCs. human can affinity two that effectiveness. two believe to by unique form elicit or our As a function tetravalent distinct in allows the X+X are for this giving importantly, to the Fc has two binding we simultaneous architecture pharmacology. bispecifics antibody, a sites antigen platform natural and antigens different and of a of reminder, balancing our receptor a new with set These targets enable the cells, bridge of tetravalent we to avidity, with pharmacology class. the us their bispecific binding great is additional new us amongst needed Clustering best perform technology And chosen our two region targeting allow antibody sites our

to want C, respect effects for place. we with their active in Therefore, deliver only molecules targets where bispecifics, potent to tumor our the microenvironment. happen of engaged third poking conditionally in the right conditionality, Finally, cancer both be only simultaneously, can activity the their the pharmacology the our

And and design this the prospective natural, for in tumor. antibody the of All our enables means human yields benefit with is stability. our safe, natural the changes few giving bispecific format, manufacturing activation so straightforward, of platform to the that full-length potent immune with antibody-like additional human antibodies process

see X, property platform XXX includes and now to to and As relating over Slide continue which on granted technology we you patents, our pending estate, can intellectual product pipeline. expand all our

new over On the experience the technology. and has to differentiated our whole Janssen, We partners, have an partnerships protected portfolio, our of deliver AstraZeneca PAR $X.X total value bringing two billion. exceptional including X, remaining team our to Slide and show with that potential we existing of

FSXXX. starting Slide first-in-class with to most the our Moving advanced asset, and X,

acquired neck and well, You'll readout in validated patients and PD-LX checkpoint, is This anticipating recall preliminary a head cancer. efficacy despite clinical progressing trial that A PD-LX checkpoint LAG-X. PD-X and failure inhibitory study clinically two and in proof-of-concept we're the pandemic, is mid-XXXX. FSXXX and resistance targets with ongoing

the settings checkpoint huge non-small of with and low patient large is checkpoint-naive B excited FSXXX we're you Additionally, target the in response at chemotherapy to treatment We it's co-stimulatory includes expand wide us agnostic. course. aims clinical outcomes avidity the that clinical about updating competition. we'll believe FSXXX a checkpoint CDX, PD-LX failure generates CDXXX, provide trial CDX our outcomes in checkpoint will provide prospects for forward both inhibitor-naive that opportunity patients, cell look inhibitory the range this lung the The the has tumor and including FSXXX. and microenvironment co-stimulates initiating separates PD-LX of those targets. trial year. tumors, expressing in and progress against differential preclinical inhibitor a the cancer update diffuse In X this of OXXX found FSXXX from of and well, cells. to lymphoma of immune a and continues from clinical Treg key cell and FSXXX and to T with targets tumor both FSXXX the of all improve and due end It type to patients surface two platform on a benefits studies, patients, the designed and cells. for to in triple CDXXX technology. Phase averages We're

During further this patients and triple plan SITC this titration we're share provided safety, combination progress later tolerated to FSXXX SB of Alone data tolerability monotherapy a the of preclinical levels XXXXX, in in and well that FSXXX. we the on week. administered continue Earlier clinic. a of five an to three year, STING these provided of positive meeting X on line well phase we pharmacokinetics combination. encouraged update for emerging dose and We're on moreover, this next year. and levels we've not tolerated are we're next action ESMO update to our the report response mechanism clinical planned a pleased We in Today, interim continued pharmacology Phase past is the clinical on and FSXXX data ready excited whilst mechanism pembrolizumab emerging intravenously October, details, combination with a FSXXX the in with novel we're clinical with And at XXXXX progress to accelerated dose and we'll immune next-generation is atezolizumab, as the date. this SB Based year, cleared the trial the escalations, was dose present initiate action. trial, data, from agonist. in these with across newly update by study ongoing dose as of and to has and

over clinical to promise readouts both be shows the continues coming one opportunities hand of X Darlene, I period Slide to for and this Before alike. multiple programs the multiple patients shareholders to and

At combination FSXXX we on on as population, the acquired of that around you we with or clinical this towards trial end me data to KEYTRUDA, clinical move an next XXXXX. Let resistance update a some share FSXXX. FSXXX on year, the preliminary SB with progress of and the we highlights. efficacy And FSXXX in updates anticipate continued year, further on patient give update plan data

and the promises to we to accomplishments, year we've you to pursue we this F-star the us, ahead who support a the update corporate see, it's with to grateful a received investor an It's committed can at been keep possible full that to to made continuous for period of you. all the date. goals by our As pleasure exciting in order team have tenaciously investment make. share community We're outreach been and of

And an update to and I'll a give public hand our good with you Another good Darlene? as that, on financials. a Darlene, first over company. year CFO, quarter to our

Darlene Deptula-Hicks

the I'll for Thank results you, the XXXX. morning, everyone. third Eliot, and now financial through of go good quarter

for our executing as We'll effective cash XXXX, million. quarter. financial were been the equivalents on take company's our it's our collaborations. stated, clinical strategy, the Cash at XX, productive platform be to $XX.X management end. Eliot provides significant As another happy September milestones confident solid partnership expanding positive and of questions including a and and We're

Additionally, announced Janssen million payment we from Biotech, recently collaboration. expect the our upfront to resulting receive in QX from $XX.X very

multiple We Revenue clinical to operating provide $X.X the $XXX,XXX our This same compared services XXXX. XX, the through primarily mid-XXXX. expect in of licensing period in quarter million for as of currently ended million $X.X reduction projected $X.X cash all fund for due to and across million R&D will in September with was plan, sufficient revenue. this revenue a revenue milestones XXXX, four reduction decrease programs was including

U.K. collaboration collaboration program revenue upfront have services. of $X.X $X.X development payments have September FSXXX, to incurred million now relating to million costs ended for $X.X Janssen partners This the Merck and exchange This by for million, million us reduction our in a XXXX. transitioned for which of any do primarily to to and of in million of compensation million in offset million parts costs decrease and trial development $X.X the increases quarter the decrease costs $X.X the and rent million, clinical XXXX ongoing clinical resulting of due and the expected. expenses X in for payments, amounts Biotech, This Bank other in QX noncash come of expenses administrative $X.X most quarter million. KGaA, historically third $X.X end increase costs in include and our $X.X compared the Our the an a manufacturing consistent to of $X.X administrative research million third Phase staff-related due were million consists Spring costs costs stock and SB is and $X.X quarter Total approximately relating is general strategy. R&D option general of and of professional expenses G&A was and XXXX Research decreases phase, $X.X of recently, were XX, three of million $X.X also million exercise to buildings insurance $X.X due CRO Therapeutics, acquired and $X.X and license million increase are Denali collaboration quarter those $X.X include primarily XXXXX by and costs FSXXX not for quarter. R&D tax under the and in repairs XXXX $X.X of R&D year R&D the with to research of for quarter were of transaction as million milestone prior decrease with 'XX, and XXXX, and and recognized and increase arrangements and for expense the amounts in third the due with a $XX,XXX quarter cost Spring phase milestone million. $X.X in costs revenue credit which AstraZeneca share of Bank comparable of service were allocated consumables, full with a costs of noncash-based which in from a to decrease increase that lab million from Pharmaceuticals the an compensation expense staff-related to lease XXXX. offset legal and agreements both XXXX we in as the million resulting expenses other million XXXX, as third compared of for of includes all to stock-based expense have transaction, Currently, payments, $X.X respectively. in $X.X

significant for loss $X.XX of Turning basic for clinic. highlighted per the to financial quarter or Eliot was and milestones, net loss. third positive effective share engagement unique in share company programs come the compared the to of $XX.X now of updates investors. diluted a we with to Net we encouraged net loss bispecific the fourth In delivering a million tetravalent to We're exciting our upcoming look that, $X.XX underpin for milestones of XXXX. community call XXXX We'll $X.X build more diluted third the on the for the basic to really interest the open bispecific and with have with the during by public quarter and the management closing, million focus or our continues platform. quarter multiple continue patients per for first ahead established and beyond. our and year potential and questions. we'll relationships from our investor the as And on as

Operator

Our Hartaj of from Singh from Co. & Oppenheimer first line the question [Operator Instructions] comes

line Your is open.

Hartaj Singh

progress your combination, couple and of bispecifics Bristol how And for on Eliot, own busy. its I more to guess, a competitors data around other presented test getting busy thanks Very really expectations, day. update. you're very But you, one's are on questions relatlimab nivolumab. against a has doing just not very but is a nice

what So can DLBCL? are, in what And guess, and that that I talk gained of on in past us cancer you then terms terms steps be in different the clinical the you've Could fairly from of update you around we strategy? adding your to an dose has little a an about cell your bit of could you give FSXXX. to insights And update lung from Those presentations, there? indicated tumor FSXXX? FSXXX, will just pretty added got sort - certainty the escalation aside next you as types non-small quickly. that accelerated just data when And there expect

Eliot Forster

us and joining today. thanks the very for much questions Look, for

we, So as with have XXX. respect to yes, FSXXX, with a mean, know, sure, you strategy track I twin got

pretreated of And find And activity. emerging of patient believe populations. cancer and in who and ultimately, conversations, with lymphoma large from of The were kind which for prior non-small larger BMS, marketplace, that we're just co-expression success patients to refractory looking through first potentially the in on lung course, to to of we particular, marker players internally, is focused not checkpoint-naive these being as others, we cell have checkpoint that route but track other some fast B and space. LAG-X from And the in at cell group that's into continue the potential confidence and to route to data, from a us of Regeneron market data continue recall through inhibitor. in much diffuse will grew the been look PD-LX as and leapfrog we the a that we allow you'll the a can at

clinic. data establishing. some along with That's showed we're those So we're that. emergence - very data continue we've I excited noted, arise to ESMO of to much and see go our progress, look, and yes, - that really from we the to and see respect and we interesting expected posted and With we've we're at any in We monitor FSXXX, forward. updates as keeping excited as of been pharmacology recent preclinical course, we the to in to come

is with the we has keeping in in we triple seen pembrolizumab certainly that thinking saw this benefits, have start combination cohorts. very is X+X with have much some with in to are very did in described that The we combination PK the data interesting of the into response over ESMO, immune chemotherapy. with are really that the emerge although presentation. PD-LX. either the keeping. And begun nine quickly FSXXX And the expansion next broadly as real monotherapy synergies as course, moving in of non-clinically, of months I can use some to through briefly we next study to forward, So the And steps six certainly because combination and

those, we're we're excited agreement KEYTRUDA, of - And in under about pembro, XXXX. the supplied going both but so start to with which with is MSD next in

far. we've really, what so So really moving I'm to forward But seen about that. we're excited

Hartaj Singh

just for follow-up then quick Darlene. And a

In - OpEx terms of pretty tight quarter. your was this

but how mean, about of into the Darlene, color I evolution keep programs year? any just not any Your be OpEx thinking should next we guidance, year. ramping thoughts of kind on next up. on

Darlene Deptula-Hicks

Yes.

I thank move you along Phase for X, through would is think way - we clinic, programs we've that in the about Xs. the got Phase I think get these as one in question, that, as Hartaj, a X

half along As start things of this year. start of to the we won't as the of that year, the expect of time further. for This I see next we're frame ramp would kind move - least at I XX expenses we But these into kind to months' end, move year, quite towards we these next ramp think will kind yet. see some of latter

Operator

the of Your Leerink. Graybosch from SVB Daina from next comes line question

open. Your line is

Daina Graybosch

reflections in at looking your your if or look just FSXXX in studies, TMB I TMB-high. forward? studies been and cancer, any plan review going previous lung it to in you I interesting had oral pretty pembro saw LAG an wonder you the that's at going Merck frontline be if guys and LAG of a They to a SITC? had signal chance to wonder at in And if you've data their

Eliot Forster

you, for question. to the thanks speak much and very nice to Daina,

obviously, are data interested look at of to a disclosed ways Merck give and Look, the not populations saying patient anything. at in groups in specific with correlation those they actually look at, we mutation the LAG-X of patients pembro look that see trying of that which will interested kind to are away we've the how certainly, we And see But there examine out. I'm terms to we we be So are. that from plays game we not it what close yet. taken in of we from different TMB haven't a subgroups. different set, are but can patients continuing by burden

cell DLBCL, direct non-small to would that towards of agnostic moved with patients pairs the biomarkers typically we we've of that as kind in about as particular us more those instance, for lung looking settings opposed in and cancer for set would So those TMB-high we're patient immuno-oncology. to think

So just kind of Merck take precised need bit reflect we'll a on the see or it. we respect me data, to that more catched approach. as you and a frankly, little With it's cold to

Daina Graybosch

think more Well, all SITC. we'll detailed data I see at actually

So Thank that you I'll have ask cold to again. you answer. for

Eliot Forster

All right.

talk the to Nice you Daina. Thanks, weekend. See you. worries. to No week. Next at

Operator

Your Justin B. next line of Securities. Walsh question from comes from Riley the

is line Your open.

Justin Walsh

Congrats on the progress.

pipeline we've you Can is plug-and-play of all I discovery rapid how seems it promise agreements, facilitates that with some discovery. seen companies versatility. collaboration color and platform the efforts provide and drug on the early your this? delivering you your on how platform think claim approach But additional

Eliot Forster

Yes. Sure.

should made Merck really look, the in have I speaks and So versatility. got on SITC. KGaA that some and really deal, with range of collaboration think to KGaA extent, in believe the coming the mean, emerge that as We've I three platform. Janssen at publish in from we're I them wide something in clinic past to as our future. the think, the not versatility Denali excited And the and But adaptability course, will about programs to adding Merck Denali about platform. we to CNS the we what's of particular, in are I about from much

patents which an And really, not we around however, natural but we'll through finely-tuned just be by the benefit, those real volume see in molecules that their be is the mechanism. to for format, we the reaffirm the we've of well. us really for have, of continue of one important cross-linking with Janssen. our then that clustering I we of in the know. sure XXX strengths to of haven't programs scale in to manufacturing, we like IgG is of of which, right FSXXX, a third-party, one create setting. data the plug-and-play much is to I world And And update bispecific on think that able ability one versus and avidity just And announced granted pending a kind we you protected as really affinities the course, excited monoclonal-like molecule able I'm the becoming we I today, of given think as real is think that continue things tuning is or stable terms And relative power partnership, really produce, deliver molecules. be with emerging, to we the and right occasional exemplifies that

Justin Walsh

quick And won't takeaways your know question one from for? Are we SITC presentation? I clinical on data, specific in have lookout but be the should be any should that me. we new what more any we there looking for

Eliot Forster

Yes.

we're at think and FSXXX as a has kind presentation. And reflect hinted we - the those know, looking because more look. look we really programs, to all immune times one of on. at with respect you progress things systems, that to relationship to do I've begun using as response we've I we forward during and seen, so kind we that biomarkers is of many that, we that's PK/PD just immune the this, about whole We this of model models and of to look talked reflect you at of

discussion to in, our a advertise Sunday SITC to there be who combination opportunity project respect you poster SITC roast. or we've of use Head excellent please got the Morrow, and FSXXX. your well. LAG-X at It And Michelle a the and at to as of pembrolizumab with do. tune is can are of on something But Biology, on those go roundtable will with can't to I plan the FSXXX leader help relates kind forward-looking not So with

Operator

from Company. [Operator line question & the from Jen of last Your Yale Instructions] Laidlaw comes

is line open. Your

Yale Jen

study, you that? give just more - bit terms lung non-small in the you console XXX design? little of in And revealed cell guys a Could that have color on

Eliot Forster

the No, of with very to regulatory to And that are which the the going Yale. we processes, date. - initiating at in we Europe. of process post I do think as expose other at soon through study are well, that usually some ClinicalTrials.gov We're in as we'll level we But this respect declare we'll afraid, there. as I'm we no details time, haven't

Yale Jen

the heading question could Okay. That's maybe been we And quarter the there? a fine. figure for the expenditures current last quarter third quarter the of norm in major and R&D I second was anticipate And certainly Darlene has one first that this mean year. much lower What third the than year? be this into should differences the of - the

Darlene Deptula-Hicks

Yes.

So me G&A I expenses first, thanks let question. guess. take Maybe for that

comparing quarter, just year transaction. working Bank was you're year this If Spring on over time them when remember quarter last prior were the we

that. with So fees associated professional legal we a of fees, lot had

more the So norm. that's We're in going forward. not the norm clearly

more XXXX, norm So if you kind QX in look going of at that's the forward.

So again, sort a ago. onetime of lot expense year a of

- The of our so in but there'll some be a other there. year we manufacturing month, were this higher year, couple of they Does think don't large there'll for next happen because costs higher and year, it that would always QX little be we how the costs I in this of because different I annualize that's earlier thing, quarters, to we quarters about manufacturing - periodically, Those happen had in out, help? if had up would R&D but date, were think bit that do a down few batch this every out. - quarters kind that of

Yale Jen

really and appreciate Okay. Oh helpful, That's it. very absolutely. yes, I

look to and again, soon. guys the So congrats you progress speaking to on forward

Darlene Deptula-Hicks

Great. Thanks much. so

Operator

There turn questions over to are to Forster closing now remarks. Mr. would like for any no this I time. Eliot at the call

Eliot Forster

quarter joining thank as for public We've good good had thanks a this company. first year for us morning, you, Well, and a Great. questions. everyone, those another and

FSXXX the huge As corporate trial, for patients. clinical emerging other in and potential the over and personally FSXXX new from excited the period, on well have promised, programs pharmacology clinical we've two our I'm goals this data is about too. stage progressed strategies, trial and patients delivered

Janssen the many team, our AstraZeneca step our your for highlights also coming our for trials immunotherapies the to shareholders like track united in F-star finally, I'd our capitalizing develop look non-core the strategy months. partners New clinical and in the on like investigators. to next-generation of deliver more partnerships really be participating our with with every excited behind cash mission and to we're our successes to With forward expert And to a Thank support. with thank I clinical assets. thank and you patients runway, to milestones and I'd sharing strong over the to lives our cancer, patients We're transform of way. you. our

Operator

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

may You now disconnect.

F-star Therapeutics (FSTX) 14 Nov 212021 Q3 Earnings call transcript