Cartesian Therapeutics(RNAC) - 2019 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue recognized for Q2 2019 was less than $0.1 million under the collaboration agreement with Spark, compared to no revenue recognized in Q2 2018 [30] - R&D expenses for Q2 2019 were $12.1 million, down from $14.4 million in Q2 2018, primarily due to reduced salaries and benefits from headcount reduction [31] - G&A expenses for Q2 2019 were $4.1 million, compared to $4.4 million in Q2 2018, mainly due to reduced legal fees [32] - The net loss for Q2 2019 was $16.4 million or $0.37 per share, compared to a net loss of $18.8 million or $0.84 per share in the same period of 2018 [32] - As of June 30, 2019, the company had $42 million in cash and equivalents, down from $48.7 million as of March 31, 2019 [33] Business Line Data and Key Metrics Changes - The lead development program, SEL-212, for chronic refractory gout is progressing with patient enrollment ongoing in the COMPARE trial [10] - Data from the completed Phase II trial of SEL-212 showed that 66% of evaluable patients maintained serum uric acid levels below six milligrams per deciliter after five monthly treatments [21] - The market potential for chronic refractory gout is estimated at over $1 billion, with approximately 160,000 patients in the U.S. [28] Market Data and Key Metrics Changes - The company is focusing on partnerships for its ImmTOR platform to enhance gene therapy solutions targeting systemic diseases [15] - The collaboration with AskBio aims to develop a broad portfolio of AAV gene therapies, leveraging AskBio's proven track record in gene therapy [11] Company Strategy and Development Direction - The company is excited about the potential of its ImmTOR platform in therapeutic biologics, enzymes, and AAV gene therapy [8] - Strategic partnerships are seen as essential for realizing the vision for gene therapy, particularly with the recent partnership with AskBio [15] - The company plans to continue advancing its AAV gene therapy program and is focused on building its team to support these initiatives [17] Management's Comments on Operating Environment and Future Outlook - Management expressed enthusiasm about the late-stage asset for chronic refractory gout and looks forward to announcing interim data from the COMPARE trial in Q4 2019 [35] - The company believes its platform has broad potential and is eager to unlock value through partnerships, particularly with AskBio [35] Other Important Information - The company welcomed Dr. Alison Schecter as Chief Medical Officer, bringing extensive experience in drug development [16] - The company has two internal gene therapy programs, MMA and OTC, which are planned to be integrated into the partnership with AskBio [56] Q&A Session Summary Question: Impact of partnership with AskBio on financial situation - Management indicated that the partnership will have little impact on financials in 2019 and does not limit future partnerships [39] Question: Update from Spark about opting in - Management confirmed ongoing communication with Spark regarding their opportunity to opt into additional indications [45] Question: Plans for Phase III/IV of SEL-212 - Management stated that plans for Phase III are still in place, dependent on funding availability [49] Question: Interim readout patient data expectations - Management committed to an interim readout towards the end of the year but did not specify patient data range [50] Question: Development programs with AskBio - Management confirmed plans for additional development programs with AskBio beyond the MMA program [63]