Viracta(US:VIRX)2020-08-11 23:12Financial Data and Key Metrics Changes - The company ended the quarter with $23.2 million in cash, cash equivalents, and restricted cash, bolstered by an additional $12.6 million raised from an equity offering [15] - Cash used in operating activities was $11.5 million for the six months ended June 30, 2020, compared to $13 million for the same period in 2019, primarily due to a net loss of $12.2 million and changes in operating assets and liabilities [16] Business Line Data and Key Metrics Changes - The company has committed resources towards the development of its first-in-class PDK-1 inhibitor, SNS-510, while evaluating the path forward for vecabrutinib [5][6] - Vecabrutinib continues to show an excellent safety profile but did not advance to Phase 2 due to insufficient clinical activity [10] Market Data and Key Metrics Changes - The company is focusing on SNS-510, which has shown synergistic activity when combined with other inhibitors in preclinical studies, particularly in breast cancer and lymphoma cell lines [8] Company Strategy and Development Direction - The company plans to review strategic alternatives to maximize shareholder value, which may include asset in-licensing, partnering, and mergers and acquisitions [14] - A workforce reduction of approximately 30% was implemented to right-size the company and preserve cash resources [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the industry-wide impact of COVID-19 and expressed pride in the team's commitment to maintain business continuity during this time [17] - The company is well-positioned to focus on the development of SNS-510 while maximizing the value of vecabrutinib [16] Other Important Information - The company expects to present additional preclinical findings for SNS-510 at a scientific meeting later in the year, with a target to file an IND by the first half of 2021 [9] Q&A Session Summary Question: Potential of SNS-510 across tumor types - Management indicated that SNS-510 could have broad activity against various cancers, particularly those with CDKN2A mutations, which may serve as useful biomarkers [20][23] Question: Strategic review impact on SNS-510 - Management confirmed that there are no specific gating items or expenses that would delay the progress of SNS-510 during the strategic review [34] Question: Mechanism of action of SNS-510 - Management clarified that SNS-510 enhances cytotoxicity in tumors with CDKN2A mutations by regulating the cell cycle, rather than directly acting on CDKN2A gene products [38][39]