CYTR - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen, and welcome to the CytRx Corporation Second Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions].

As a reminder, today’s program is being recorded. to Financial host Officer. like John today’s now Chief Caloz, would introduce for your program, I Please ahead, go sir.

John Caloz

second results. Thank you, and Chief today’s CytRx’s Operating on for I’m joining XXXX Jonathan, and our Curtis. thank call you joined today Officer, to President John Eric name is My all by us quarter Caloz financial and discuss

the and On second remarks. an overview of brief and provide the call a Eric provide results. today, financial will Eric development quarter will plans. programs will make overview summary I of some introductory comments some Then, the provide

will your press morning, We cytrx.com. then for XXXX. Earlier open CytRx’s on detailing is for the the a at questions. our issued release quarter site of call The we results second this release available Web

I uncertainties and cause actual the are company’s which detailed in from expectations the future our such you may forward-looking which constitute All Before risks statements. this implied in SEC, remind forward-looking making or our be concerning statements to comments, that filings intentions, represent during factors, differ and expressed subject announcing will we today’s that statements. release such the events, assertions results materially begin will or beliefs call we formal call to by press with today’s those results as forward-looking

Eric? ended now turn for forward-looking forward-looking materially specifically discussion We any results to December the relied as report date. you representing statements. could to these Curtis. annual upon on obligations only differ any XXXX to the as of as recording be not any the I statements. of any statements subsequent cause such XX-K a views addition, represent that Form the our refer of to would this Eric over our In to section should the year risk actual for date call We like and of factors important disclaim of update from views factors XX,

Eric Curtis

today’s on joining everyone. call. and Thank good us Thank you morning, you, John, for

a a our This quarter quarter contributed and assets. of furthering Most the financial has by of the saw CytRx notably, second evolution Centurion which several corporate achievements pipeline been driven have and launch to of technology Personalized CytRx, the the who a wholly-owned target new focused right is strategy. utilizes can treatment. medicine personalized our subsidiary certain private BioPharma medicine to benefit Corporation, patients which of on type of from advancing

licensing priority, and platform as enhancing Freiburg, the of laboratory was our for the facilities and first our of identify of as personalized a to medicine value assets executing rates purpose by to LADR-X, any One new in the drug may our to outcomes separation developed attract from LADR-X, in attract future. that will will gain endeavor and to LADR patent partners. efforts to our BioPharma makes the Corporation Centurion and a pharmaceutical believe we unlock determined albumin we shareholder the significant patients lead in with companies. oncologists Its diagnostic. treatment our management best higher partners. are doing be of a The promise tax-free better treatment diagnostic response LADR-X strategy the unanimously a or for of of patients provisional development candidates this and we LADR-XX and value we help assets; strategic call receive consolidated from the will so, creation the is to albumin-binding highly well the top In With believe was team LADR best steps companion to maximizing ACDx pipeline attractive way CytRx our generate companion who at that patients filing as Board Germany drugs

art when has will allows response subsidiary, companion agents ACDx with of In radiolabel albumin our diagnostic. albumin utilizes Centurion the preclinical focused LADR imaging albumin have exciting and and in candidates state-of-the seen research we our that testing, new the does to in plans for imaging be we drugs, patients uptake distribution in and our positive xenograft As BioPharma diagnostic. development techniques, detection Since Corporation for tumor. combination ACDx albumin-binding believe are drug patient’s the in tumors. higher identify this companion test selected with rates used proprietary who

President programs utilizing of further Centurion, in of and and alliance. and As be secure to experience development commercialization Chief a will our medicines Executive I Officer new my strategic both

Felix Caloz, resources not of the Cancer companion as next BioPharma’s drug data are for Officer. second of inventor LADR our Dr. diagnostics Warnecke to American that Chicago. in to believe serve also prestigious today the data more types, at regimens, competitive Vice and XXXX and our drug significantly cancer in the more ACDx Financial precision. Dr. only with Our Association Presentations. Relations other this Centurion to of leadership of to site being individual of Discovery companion are be therapies medicine treat the targeted the key meeting presented In push Discovery candidates evolving making accessed innovative LADR diagnostics we patients. the but be valuable and discovery to biomedical affirms quarter, strengthens strategic provide Research partners. we forefront from and excited under CytRx’s positive We to devoted the and Web some tumor in Investor research Director, Chief better at copies ACDx of development be annual section to Personalized the are can PDF team and rapidly pipeline To of highlights multiple part for field interim John Drug President, Kratz, consists of Andre the LADR, Senior and extensive Drug oncology, ability advantages studied recap the of

during NantCell’s initiated aldoxorubicin For killer CytRx, Phase immunotherapy therapy triple the several cell breast with combined in quarter NantCell. evaluating also achievements natural by Xb/X aldoxorubicin were high there They with cancer. third affinity or made proprietary negative clinical patients trial licensee a

highly without challenged commenced identify and in The very treatment XXXX. alternatives this and of investigating NantCell’s on type efforts relevance future initiation effective patients commenced to bring and with development back of XXXX NantCell’s cardiotoxicity the have site. may equivalent toxic doxorubicin-associated to drug need that the aldoxorubicin. Future be I’ll sarcoma, squamous cardiac over aldoxorubicin lacks online their data albumin-binding We continued beyond to look with and XXXX aldoxorubicin call January Medicine cancer meter the It for journal the turn milligrams cancer. evidence in second The Oncology. square. patients aldoxorubicin types, also proprietary or accessed At discusses aldoxorubicin to other patients forward activity negative ifosfamide, cell improve to that of cardiotoxicity. toxicity. can doxorubicin. February presented the to further difficult mechanism to alternative in to treat patients for as patients or clinical now data with to showed the and of discusses to an Financial its cell commitment trial discuss that financials Also cancer and corporate in doses balance American peer-reviewed placement paper with several well presentation. John? combination showing in John positively combination women to ASCO, breast by capital body pancreatic markets. in anthracycline June, CytRx’s aggressive our showed of The speaks was able who in June, third pharmacokinetics, Society Oncology, of treatment a annual studies, The in breast meeting the haNK highlighted of paper adds triple be first This in of Future the in in trial per trial tumor improved Web to Clinical clinical with carcinoma poster impacted the Caloz, alone doxorubicin The as while data Chief profile data sensitive growing clinical sheet aldoxorubicin, in clinical working typical as the therapy advanced NantCell aldoxorubicin trial avoiding Officer, our trials preclinical the XXXX action, from in in of events safety antitumor the

John Caloz

million. a highlights. reduced burn results, cash XXXX second review Thank compared has cash manage its today financial and I’ll XX.X a earlier notably, X million, XXXX with its our CytRx comparative million, $XX.X dramatically approximately Cash XXXX press outlining or share, $X.XX we continue of XX.X of issued Eric. to rate loss for Net per effectively. $X.XX to and period, June you, net reduction monthly June or per quarter a XX Most million, the or financial for cash just release expects was our equivalents quarter XX, ended the Since loss as of totaled share, XX%.

expenses decrease associated overhang common under general compared company of for common the made and quarter the approximately warrant announced represents of long-term non-cash primarily adjustment the warrants, liabilities on and in that quarter X.X these the of agreement of gain related warrants stability. quarter the second of issued second the of the of XX% and Last non-cash warrants were million the development our had X.X XXXX, we of decreased professional expenses $XXX,XXX of during fees. which expense $XXX,XXX quarter for XXXX. for Wednesday, were fair to a million of XXXX, to float $XXX,XXX expenses X.X million second XXXX, we R&D public were the diagnostic due XXXX quarter facility a X.X for to the compared second of the stock-compensation companion final provides Hercules included of and for Research of shares expenses. of quarter December XXXX. loan payment including a and General quarter with development $XXX,XXX $XXX,XXX $XXX,XXX XXXX of expiration scheduled X.X we the in by recognized July, of program believe in expiration a In the offering During for second value our derivative or approximately the loss the approximately second additional $XXX,XXX eliminates second million expenses, XXXX Group. non-cash for stock. albumin second related million a X.X XXXX, and million aldoxorubicin announced expenses. to share non-cash and non-cash for administrative of We expenses for majority XXXX, G&A of In with the with quarter which administrative

August XXXX, of of Hercules full, loan As which the eliminated debt. all in paid X, outstanding was CytRx's

Finally, investors CytRx market strategists by June the XXXX. and XX, on effective Monday, for index broadly benchmarks indexes Index, institutional was are investment the Microcap Russell active to open funds. added referenced as upon The Russell

be turn pleased are on back that, important I’ll index. the this We over to call Eric. to very With listed

Eric Curtis

you, Thank John.

events recent conferences our made highlight months. formal we the broad Street To At presentations strengthen In corporate audience. John recent plans in participated been that end, outlined, working investors. multiple diligently institutional institutional investor also and and in we a meetings with addition in had events, we’ve institutional to Wall base accomplishments investor to these to CytRx’s one-on-one

last path the months XXXX. major goal strategic over extremely proud our for partnership end and candidates drug partnership made several of achievements diagnostic the We’re secure the will filing forward LADR strategic a determine and IND we the have FDA. companion before LADR is of the studies for IND-enabling and an with to our potency high The of the

balance we As This very open patients our rationally the there the like XXXX, remarks. the are is opportunity I’d the We to we to new cancer. line ahead with operator designed of breakthrough of questions. of drugs turn now company. and to believe Operator? goal a to look to call treat a create over significant prepared concludes forward is to focused class our

Operator

Certainly. [Operator Instructions].

Wainwright. of comes question the first H.C. Selvaraju Raghuram from Our from line

Your question please.

Raghuram Selvaraju

so my Thanks for Hi. much taking questions.

clarification ask about without a secure definitely regarding efforts understanding an IND to submission a Is small be into just proceed wanted the partner it my of to LADR partnership. the onboard? to would candidates point you that not I a and Firstly,

Eric Curtis

assumption. going think points aligned best off a because our your the aligned in It’s an Hi, us at could Ram. if we some would would This that’s is be strategic have able a position partnership forward for with strategic place, to gives in that we to that partner chance with strategic us to intent move the you to an We question. that and there track. get out secure Eric. aren’t Thank be get before alliance IND, table order

the with aligned strategic get towards forward specific So an we before partner to to move question want very answer is IND. your we our would

Raghuram Selvaraju

status filed you confirm only application specific yet. might and case has because thereafter Okay. application Could a And allowance at about the give the grant on that could when recently published my the understanding diagnostic then I you. secondly, this or patent the wanted to patent? sense also not you you issuance and is ask been of is that looking it’s the or of this for actual of indeed us be Thank timeframe

Eric Curtis

question in good is had for a That’s patent. provisional July and when here, these patent, U.S. Ram. it typically so for filed become And you, is just to late for recently Thank case filing provisional the we very it time it’s the very the recent published. takes as

that little bit others them. is know able certainly know system is take a but up available you for be that would when So to the catch let it to things we currently of available, and to these time

Raghuram Selvaraju

issuance, Okay. years a probably? it’s think do And timeframe couple you regarding to of the for be going

Eric Curtis

we what I and that’s has for we’re to need for intellectual protect process expect we track that obviously Typically, would property. see, everything Ram, us. believe do our the in We concern on to that that’s no that think think we typical to

Raghuram Selvaraju

And Okay, great. then quick one last just question.

you before do the second levels with guys compared planned and R&D this a of to year partnership as course or the spending of second of quarter? on year, over candidates trending the see this more one spending beyond securing forward how LADR the end the of the half moves everything of that Assuming

Eric Curtis

I when partnership so think say. about Ram, think the aspects, that you would lot actual on the Yes, what agreement depends a

different in other strategic level some involves there’s spending from R&D many take or on of variations which it’s areas. that partnership the perspective So can whether a

around I in What is us to have partnership. than our to is of of able think in a would evolves these programs place of strategic partnership what to quickly I help So further is lot as the mindful say of specifics to as type and the try general question to of a possible. your the very be be expense preference the that

to John, we to that know, we a want these to assets and want do we you for do as of you through can, and get As we to like able eligible four to that IND-enabling partnership. are have as add that that? best is studies feel way be strategic point anything the to did quickly

John Caloz

way No, to I the did, you essentially, you’ve going the – Eric. was question very answer similar to

is significant ramp those expenditures have we would until which that projected We what said. of know you exactly what partnership a not certain for up like, in structure look

Eric Curtis

I hope Ram. that answers question, your

Raghuram Selvaraju

you Thank much. Yes. very

Operator

you. Thank

of Our Brook line comes question Tribeca next [ph]. the Partners from Rob from

Your question please.

Unidentified Analyst

much. Good one thanks question. taking A here. the quick real and Thanks morning for very

during You very reduction burn does is the mentioned a in how your current runway? Thanks translate much. What quarter. that cash the and rate cash into burn the current

John Caloz

average reduce I been on of this we’re that that payoff burn very project, included took loan our we is excluding the if the XX is Thanks average question for in the projections. in of yes, that, in months the and the pleased Hercules $XXX,XXX the $X.X have August the exclude which which next I burn able which to The significantly. burn approximately place for that’s month X and what million, and runway you have next months a for the the XX XX-Q is

Unidentified Analyst

Great. Thanks very much.

John Caloz

Thank you.

Operator

Instructions]. [Operator you. Thank

a private next Our question Tim the McPherson comes of [ph], investor. from line

Your question please.

Unidentified Analyst

wholly-owned private Yes, into a what I creating for even or subsidiary? the Centurion was [ph] rationale wondering planning was

Eric Curtis

you, Thank Tim.

question I a private Centurion is Is question the that wholly-owned what’s creating think BioPharma if correct? your right, as I rationale have for subsidiary. your

Unidentified Analyst

Yes, is. sorry. That

Eric Curtis

great. Okay,

these advance breaking our strengthening BioPharma, efforts totally I that to that candidates. strategic doing for that’s just question, potency but large it think order up the that’s if company by lot to We in with can focused think will albumin we pharma you this it subsidiary a drug strategic partner. Centurion we that has subsidiary they private been CytRx to candidates. on company I to we ultra-high value value a think to that a decision so partners, months, the well And go wholly-owned has idea the as consolidated BioPharma that view strategic we you LADR by tell a attract like that I move. our was received viewed Centurion see that the go new that But be best and discussions, our discussions with with these when far alliance a where way the think CytRx, progress. in about to was you in then a partner in And creates Centurion to wholly-owned binding advance tell attract things the assets. few is BioPharma potential can pharmaceutical unlock Tim felt good that bit little you’re a as my as made by extensive a things last Corporation this view decision offer of can our pipeline creating We the a was partners

Unidentified Analyst

you one NDA filed When thanks. question. to be anticipate more do for the And aldoxorubicin? right, All

Eric Curtis

NantCell the by out-licensed in Yes, regulatory July The aldoxorubicin was XXXX. the to that as controlled of great is commercialization question both of and as as know you proceedings NantCell well.

the the how taken that would FDA, to it’s the process of make be and communicated to about a in is decision related or all FDA NantCell activities progress So when. with for which

answers have that won’t be share we in are that I things able they process that to confidence on task full able this resources about further they is and and aldoxorubicin. with be this are regulatory take anything reasonable a effort and have the steps seeking of on out we say in So question, fully what right the very to that that process specifics people NantCell the your is the doing taking place Tim. hope confident only to be we to to right in

Operator

Thank you.

next from investor. [ph], of question Our comes line Doug the private Ralph a

queue further he Curtis, the I’d Eric for any [Operator in just the I’m to removed the Instructions]. think hand you, to at showing queue like questions this himself further not time. remarks. I And from actually. back any program

Eric Curtis

to private years update and to Thank have the joining that you certainly course for come few we on available. looking as for it continuing are call. for forward CytRx is Thank of and to us as We you, today’s you new our months on subsidiary next and everyone to care. exciting ahead many think we again. Take progress days look well. We forward

Operator

today’s for the gentlemen, This and ladies in does participation conclude program. you, Thank conference. your

now may You disconnect. Good day.

LadRx (LADX) 6 Aug 182018 Q2 Earnings call transcript