Forte Biosciences(US:FBRX)2020-02-21 23:52Summary of Tocagen Inc. and Forte Biosciences Merger Conference Call Company Overview - Companies Involved: Tocagen Inc. (TOCA) and Forte Biosciences - Date of Call: February 20, 2020 Key Points from the Conference Call Merger Announcement - Tocagen and Forte have agreed to merge, creating a dermatology-focused company with a lead asset, FB-401, for atopic dermatitis [6][8] - The merger follows Tocagen's strategic review after disappointing Phase 3 results in September 2019 [6] Financial Structure - Tocagen's equity holders are expected to own approximately 25.5% of the combined company, while Forte's equity holders will own 74.5% on a fully diluted basis [7] - The combined company is projected to have a cash balance of approximately $25 million post-merger [8][11] Product Development - FB-401 is a live biotherapeutic developed for inflammatory skin diseases, particularly atopic dermatitis [9][10] - There are approximately 17 million atopic dermatitis patients in the US, with a significant unmet need for effective treatments, especially in pediatrics [10][15] - The Phase 1-2A clinical data for FB-401 shows significant efficacy and a favorable safety profile in both pediatric and adult populations [10][12] Clinical Trials and Data - The Phase 1-2A trial included 10 adults and 20 pediatric patients, demonstrating a 50% improvement in atopic dermatitis scores with no adverse events reported [17][19] - The next Phase 2 study is expected to start by mid-2020, with data readouts anticipated in mid-2021 [12][20] Intellectual Property - Forte holds extensive intellectual property protection for FB-401, including four issued patents covering composition and use, with protection lasting until at least 2037 [10][20] Management and Advisory Team - The merged company will be led by Forte's current CEO, Paul Wagner, who has a strong background in advancing the company through critical milestones [8][9] - The scientific advisory board includes prominent figures in dermatology, enhancing the company's credibility and expertise in the field [13] Future Outlook - The merger is expected to create significant shareholder value by addressing unmet clinical needs in inflammatory skin diseases, particularly for pediatric patients [21][22] - The next 12 to 18 months are projected to be eventful with the publication of Phase 1-2A data and the anticipated start of the next trial [20] Additional Important Information - The call included a reminder about the forward-looking statements and associated risks, encouraging listeners to review SEC filings for more detailed information [3][4] - The merger aims to leverage the strengths of both companies to enhance the development and commercialization of innovative therapies for dermatological disorders [6][21]