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Skye Bioscience Inc.(SKYE) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Research and development expenses for Q4 2024 were 7.8million,upfrom7.8 million, up from 1.6 million in Q4 2023, primarily due to clinical and manufacturing costs associated with the Phase IIa CBeyond study for nimacimab [30] - For the year ended December 31, 2024, research and development expenses totaled 18.7million,comparedto18.7 million, compared to 5.8 million in 2023, driven by increased clinical costs and employee-related benefits [31] - General and administrative expenses for Q4 2024 were 4.6million,upfrom4.6 million, up from 2.5 million in Q4 2023, mainly due to stock-based compensation and professional services [32] - The net loss for the year ended December 31, 2024, was 26.6million,adecreasefrom26.6 million, a decrease from 37.6 million in 2023, attributed to the expensing of acquisition costs in 2023 [33] Business Line Data and Key Metrics Changes - The company has shifted focus from the development of SBI-100 to nimacimab, reallocating resources to achieve clinical milestones [11] - The CBeyond clinical trial for nimacimab saw over-enrollment, completing enrollment with 136 patients, exceeding the planned 120 patients [9] Market Data and Key Metrics Changes - The company views nimacimab as a differentiated alternative in the obesity treatment market, especially as the GLP-1 receptor agonist space becomes crowded [24] - Recent industry deals highlight the growing interest in non-incretin mechanisms for obesity treatment, validating the potential of CB1 inhibitors like nimacimab [81] Company Strategy and Development Direction - The company plans to engage with regulators for a Phase IIb dose-escalation study anticipated to start in Q2 2026, while also enhancing manufacturing capabilities [22] - The strategic decision to extend the CBeyond trial to 52 weeks aims to gather more comprehensive safety and efficacy data, which will support regulatory discussions [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in nimacimab's safety profile, noting no neuropsychiatric side effects in the Phase I study and ongoing positive reviews from the Data Safety Monitoring Board [16][50] - The company anticipates that the additional data from the extended trial will enhance understanding of nimacimab's capabilities and support its regulatory package [19] Other Important Information - The company reported cash and cash equivalents of 68.4millionasofDecember31,2024,withanoperatingcashburnaveraging68.4 million as of December 31, 2024, with an operating cash burn averaging 6.3 million per quarter [34][36] - The company has eliminated related party balances and remediated litigation matters during 2024, improving its financial position [35] Q&A Session Summary Question: What can be expected from the 26 and 52-week readouts? - Management indicated that the extension study was strategic to gather longer-term efficacy and safety data, which is crucial for regulatory discussions [42][43] Question: How does the removal of the interim analysis affect the study's power? - The removal of the interim analysis preserves the study's power, allowing for a more robust efficacy and safety analysis with a larger patient dataset [60][100] Question: What feedback has been received from investigators regarding the study? - Investigators have shown strong enthusiasm for the obesity trials, contributing to the rapid enrollment pace [96] Question: Will there be additional DEXA scans during the extended study? - Yes, there will be a DEXA scan at the midpoint of the extension and another at the end of the treatment period to assess body composition changes [99] Question: How does the company view the potential for nimacimab in diabetic patients? - The company is excited about testing nimacimab in diabetic populations, as its mechanism may improve insulin sensitivity and address inflammation [132]