Molecular Partners AG(MOLN) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported CHF 184.5 million in revenue for the first half of 2022, significantly higher than the previous year, primarily due to a CHF 150 million milestone payment from Novartis for the Ensovibep option [43][46] - Operating profit reached CHF 146.3 million, compared to an operating loss of CHF 34.8 million in the same period last year [47] - Net profit for the first half of 2022 was CHF 148.6 million, a substantial increase from a loss in the previous year [48] Business Line Data and Key Metrics Changes - The revenue from Novartis accounted for CHF 168 million of the total revenue, with the remainder coming from other collaborations [46] - Total operating expenses were CHF 38.3 million, slightly lower than the previous year, with personnel costs at CHF 20.5 million and external R&D at CHF 9.5 million [47] Market Data and Key Metrics Changes - The company has a strong cash position of CHF 285 million, providing a runway into 2026, which is a significant advantage in the current biotech environment [42][16] - The company is not currently paying taxes due to carried forward losses, which amounted to CHF 212 million last year [48] Company Strategy and Development Direction - The company aims to focus on early clinical readouts that provide true patient value, particularly in oncology and infectious diseases [17][18] - The strategy includes leveraging DARPins for unique solutions in drug development, avoiding me-too products [19] - The company is committed to partnerships and collaborations to advance its programs, which is a core aspect of its operational philosophy [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the global biotech crisis but emphasized the company's strong cash position and pipeline as key strengths [10][16] - The company is optimistic about its future, with several programs expected to reach candidate stage in the coming year [66] - Management highlighted the importance of maintaining flexibility in trial designs and partnerships to adapt to the evolving market conditions [92][94] Other Important Information - The company has issued 3.5 million treasury shares as part of a shelf filing, which is a customary practice for U.S. listed companies [45] - The company is exploring the potential for its drug candidates in various markets, including the possibility of addressing local surges in COVID-19 cases outside the U.S. [112] Q&A Session Summary Question: What should investors expect from the data disclosure for 317 later this year? - Management indicated that most data will be shared with potential partners rather than publicly, focusing on demonstrating drug activity and safety [72][74] Question: What is the expected percentage of AML blasts expressing at least two markers in the Phase 1 trial for 533? - Management stated that the co-expression percentage is above 90%, and they expect to see single-agent activity [76][78] Question: What is the timeline for Novartis to start the Phase 3 trial for Ensovibep? - Management noted that the timeline is uncertain due to changing endpoints and the need for agreement on trial design [90][92] Question: Can you elaborate on the causes of inflammation in Abicipar and the processes to remove it? - Management explained that the inflammation was caused by a contaminant in the syringe, which can be addressed by using non-silicon oil syringes [96][98]