Exscientia plc(US:EXAI)2022-11-15 18:09Financial Data and Key Metrics Changes - The company reported cash inflows from collaborations of $117 million for the first nine months of 2022, compared to $67.5 million in the same period of 2021, indicating significant growth in collaboration revenue [61] - Net operating cash outflows were $15 million for the first nine months of 2022, a decrease from net operating cash inflows of $8.3 million in the same period of 2021, reflecting increased investments in growth initiatives [62] - The company ended the quarter with approximately $625 million in cash equivalents and bank deposits, providing several years of cash runway [63] Business Line Data and Key Metrics Changes - The company is advancing its clinical pipeline with plans to initiate a Phase 1b/2 study for EXS-21546 by the end of 2022 and expects to file a clinical trial application for GTAEXS-617 by the end of 2022 [8][11] - The collaboration with Sanofi is expanding to include an additional oncology target, showcasing the company's ability to leverage partnerships for growth [12] Market Data and Key Metrics Changes - The company is expanding its focus into biologics design, which effectively doubles the addressable target universe of its precision medicine platform [54] - The collaboration with the University of Texas, MD Anderson Cancer Center aims to develop small molecule therapies in oncology, indicating a strategic move into high-potential markets [12] Company Strategy and Development Direction - The company aims to shift the economic curve of the pharmaceutical industry by improving the probability of success, accelerating development cycles, and reducing costs through innovative clinical strategies [14] - The integration of AI in drug discovery and development is a core part of the company's strategy, with a focus on patient-centered precision medicine [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to advance multiple programs, including EXS-21546 and GTAEXS-617, while also investing in long-term growth initiatives [63] - The management highlighted the increasing interest in AI from pharmaceutical companies, indicating a favorable environment for collaborations and partnerships [84] Other Important Information - The company is utilizing a generative design approach for biologics, which is expected to enhance the speed and quality of drug development [71] - The company has made significant progress in developing a precision medicine platform that integrates AI and deep learning to improve patient selection for clinical trials [52] Q&A Session Summary Question: Can you discuss the ramp-up of the biologics focus and how it will evolve? - Management indicated that moving into biologics effectively doubles the target universe and expects to show proof-of-concept experiments in 2023 [67] Question: What improvements can the platform provide for biologics drug development? - Management confirmed that the generative design approach will lead to cost and time reductions in getting drugs to the IND phase [70] Question: How does the ABS patient signature work in the clinic? - The company aims to match the right treatment to the right patients using biomarker signatures, with ongoing studies to build confidence in these signatures [76] Question: Can you elaborate on the collaboration with MD Anderson? - The collaboration focuses on leveraging Exscientia's small molecule design capabilities alongside MD Anderson's clinical research expertise [96] Question: What is the sentiment around AI from pharma companies? - Management noted an increased interest in AI within big pharma, with ongoing discussions for collaborations [84]