Viracta(VIRX) - 2019 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a loss for operations of $6.0 million for Q3 2019, with total cash used in operating activities amounting to $18.4 million for the nine months ended September 30, 2019, compared to $17.9 million for the same period in 2018 [25]. - The cash position at the end of the quarter was $38.3 million, a significant increase from $13.7 million as of December 31, 2018, primarily due to $45.1 million in net proceeds from issuing common and preferred stock [26]. Business Line Data and Key Metrics Changes - The lead asset, vecabrutinib, is currently in the dose escalation phase of a Phase 1b/2 trial, with over 30 patients treated and strong enrollment in the study [8][9]. - The company is also advancing its proprietary PDK1 inhibitor, SNS-510, with preclinical data showing promising activity in hematologic and solid tumor cancer models [12]. Market Data and Key Metrics Changes - The company is preparing for a clinical update and poster presentation at the American Society of Hematology meeting in December, which will provide further insights into the ongoing trials [10]. Company Strategy and Development Direction - The company aims to identify the recommended Phase 2 dose for vecabrutinib to begin testing in defined patient populations, particularly those resistant to covalent BTK inhibitors [9][16]. - SNS-510 is positioned as a first-in-class compound, with plans to file an IND by the end of 2020, indicating a strong pipeline development strategy [12][22]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of vecabrutinib to address unmet needs in patients with hematologic malignancies who have developed resistance to existing treatments [7][16]. - The company highlighted a strong cash position that will support the advancement of its clinical programs through important milestones [13][26]. Other Important Information - The company recently appointed Dr. Nicole Onetto to its Board of Directors, bringing over 20 years of clinical development experience in oncology and hematology [15]. Q&A Session Summary Question: Relationship between dose and drug plasma concentration levels - Management indicated that they are encouraged by the increase in exposure seen with dose escalation and will provide more details at the upcoming ASH meeting [29]. Question: Patient enrollment status - The company noted a mix of patients, with some being less heavily pretreated as they move to higher doses [33]. Question: Efficacy exposure levels - Management is continuing to understand the relationship between dose exposure and efficacy as they progress through dose escalation [37]. Question: Decision process for dose escalation or expansion - The decision to escalate or expand will depend on composite data from safety and activity information at the time of evaluation [39].