Synlogic(US:SYBX)2019-08-10 05:11Financial Data and Key Metrics Changes - Revenues for Q2 2019 were $0.4 million, an increase from $0.3 million in Q2 2018, primarily from collaboration with AbbVie [26] - Total operating expenses decreased to $13.4 million in Q2 2019 from $15.6 million in Q2 2018 [26] - Consolidated net loss for Q2 2019 was $12.3 million or $0.45 per share, compared to a net loss of $14.6 million or $0.59 per share in Q2 2018 [28] - Cash position at the end of Q2 2019 was $149.1 million, bolstered by a $50 million cash influx from the Ginkgo agreement [29] Business Line Data and Key Metrics Changes - Research and Development expenses were $9.7 million in Q2 2019, down from $10.9 million in Q2 2018, due to reduced clinical development costs for the SYNB1618 program [27] - General and administrative expenses decreased to $3.7 million in Q2 2019 from $4.7 million in Q2 2018 [28] Market Data and Key Metrics Changes - The company is focusing on metabolic diseases, particularly phenylketonuria (PKU) and hyperammonemia, with engineered strains SYNB1618 and SYNB1020 [11][12] - Collaboration with AbbVie aims to develop Synthetic Biotic medicines for inflammatory bowel disease (IBD) [13] Company Strategy and Development Direction - The company aims to develop a new class of living medicines using synthetic biology to address unmet medical needs [8][10] - A collaboration with Ginkgo Bioworks was established to enhance synthetic biology capabilities and optimize clinical candidates [19][22] - The company is prioritizing metabolic diseases and immunomodulation as key focus areas for future development [76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of SYNB1618 and SYNB1020 programs, with expectations for upcoming clinical data [16][45] - The company is on track to file an IND application for SYNB1891 and anticipates significant advancements in its clinical programs [17][46] - Management highlighted the importance of understanding the behavior of engineered bacteria in human trials to inform future studies [31][38] Other Important Information - The company plans to present full data from the SYNB1618 study at the SSIEM symposium in September [34] - The collaboration with Ginkgo includes a commitment of $30 million for services over the next five years [22] Q&A Session Summary Question: Details on the bridging study for SYNB1618 - Management confirmed the bridging study will start with a well-tolerated dose and will dose escalate to identify the maximum tolerated dose [52][53] Question: Evidence for the new manufacturing process supporting tolerability - Management noted that while preclinical models do not provide direct evidence, tolerability data from the SYNB1020 program gives confidence in the new formulation [64] Question: Plans for assessing SYNB1891 as a monotherapy and in combination with Tecentriq - Management confirmed that SYNB1891 will be assessed first as a monotherapy, followed by combination therapy with Tecentriq [85][88] Question: Strategic intent for exploring synthetic biotic platform in diseases like IBD - Management emphasized the potential of the platform to address unmet needs in IBD and the importance of combination therapies for complex diseases [92][94] Question: Clarification on the optimization of the SYNB1618 profile - Management indicated that optimization efforts will focus on achieving the desired Phe lowering at tolerable doses, with ongoing studies to validate the approach [100][103]