Financial Data and Key Metrics Changes - As of September 30, 2019, the company had a cash and investment balance of $90.1 million, down from $124.6 million at December 31, 2018 [11] - Cash used in operating activities during the first nine months of 2019 was $57.7 million, partially offset by $20 million in non-refundable gross proceeds from the sale of a portion of royalty entitlement [12] - The company reported non-cash charges of $43.8 million related to impairment of in-process research and development and tangible assets, and $22.5 million for impairment of goodwill [13] Business Line Data and Key Metrics Changes - The company discontinued the clinical development of AB-506 due to safety concerns observed in Phase 1a trials [6] - Focus areas include completing the Phase 1a/1b clinical trial of AB-729, selecting a next-generation capsid inhibitor, and advancing research on oral compounds that inhibit PDL-1 [7][8] Market Data and Key Metrics Changes - The company plans to present results from the AB-506 trials at the AASLD Meeting on November 11, 2019, indicating ongoing engagement with the market and stakeholders [7] Company Strategy and Development Direction - The company aims to improve the standard of care in Hepatitis B by developing a curative combination regimen with multiple mechanisms of action [7] - The strategy includes selecting a next-generation capsid inhibitor for IND enabling studies by December 2019 and advancing the RNA destabilizer AB-452 [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing development of AB-729 and its potential to provide a once-monthly dosing regimen based on preclinical results [19] - The company remains focused on achieving a functional cure for HBV patients through a combination of therapies, including capsid inhibitors and immune reawakening strategies [27] Other Important Information - The company believes its current cash is sufficient to fund operations into early 2021 [13] - The accounting treatment for the sale of royalty entitlement involves recording an initial liability equal to the net proceeds received, with future royalty payments accounted for as non-cash revenue [14] Q&A Session Summary Question: Could you review the preclinical observations for AB-729 RNAi program? - Management highlighted that AB-729 demonstrates a multi-dose dependent reduction in HBV S-antigen in animal models, comparing favorably to competitors [18] Question: What do you believe success looks like in 1Q 2020 readout from HBV patient cohort? - Success will be measured by the magnitude and consistency of surface antigen decay across different patient types [22] Question: After seeing the J&J Arrow partnership data, what is the incremental value of having a core capsid inhibitor? - Management reiterated the belief that multiple mechanisms are necessary for achieving a functional cure, emphasizing the importance of capsid inhibitors in combination therapies [27] Question: What are your thoughts on the Roche-Dicerna deal? - Management expressed interest in developing a portfolio of assets with different mechanisms of action and did not rule out potential partnerships [30] Question: Can you provide an estimate of when you might commence Phase 1 studies for your next-gen capsid inhibitor? - Management did not provide a specific start date but indicated that guidance would be clearer in the future [35]
Arbutus Biopharma(ABUS) - 2019 Q3 - Earnings Call Transcript