Biora Therapeutics(BIOR) - 2021 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company generated $9.6 million in revenues during Q3 2021, with $9.4 million from discontinued operations, indicating a shift away from molecular testing operations [21] - Operating expenses, excluding stock-based compensation, were $32.7 million in Q3 2021, representing a $9 million favorable variance compared to previous guidance [22] - The company achieved a $110 million annual operating expenses run rate reduction during Q3 2021, with expectations to reach less than $25 million in Q4 [20][22] Business Line Data and Key Metrics Changes - The Oral Biotherapeutics program targets a $250 billion global biologics market, focusing on oral delivery of biomolecules [9] - The Drug Delivery System (DDS) program aims to treat GI localized diseases, initially targeting the $15 billion IBD market with lead drugs PGN-600 and PGN-001 [14] - The Preecludia test for preeclampsia demonstrated strong performance in validation studies, with potential for significant market impact [18][19] Market Data and Key Metrics Changes - The company is focusing on the biotherapeutics market, particularly oral delivery solutions and treatments for inflammatory bowel disease [26] - The Preecludia test has the potential to capture a share of the approximately $3 billion market in the U.S. [26] Company Strategy and Development Direction - The company is transforming into an innovation-led biotherapeutics company, focusing on oral delivery of biomolecules and GI IBD platforms [7][26] - There is a clear focus on advancing the pipeline, generating value from unique assets, and exploring partnerships [6][26] - The company aims to reduce cash burn and optimize capital allocation towards innovation [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transformation process and the potential for the company's innovation pipeline to create value [26] - The company is focused on generating compelling data in the near term to de-risk its programs and enhance value [34] Other Important Information - The company raised $40 million in gross proceeds during Q3 2021 and had a cash balance of $54 million at the end of the quarter [24] - A proactive approach to managing capital structure has led to a 38% reduction in the balance of convertible notes [25] Q&A Session Summary Question: Update on Preecludia strategy and licensing opportunities - Management indicated that outreach to potential licensees for Preecludia is in the initial phase, with positive data supporting its value [28][29] Question: Details on the third pharma partnership for OBDS - Management stated that it is still early to provide detailed information on the partnership, emphasizing the importance of generated data [31] Question: Expectations for upcoming PK/PD data in UC and future clinical trials - Management noted that more data will be generated soon, which will help define necessary studies, and emphasized the unique nature of their drug development approach [34]