Q2 2020 Sunesis Pharmaceuticals Inc Earnings Call

Thank you for standing by your conference call will begin in about one minute. Thank you for your patience and please continue to somebody.

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<unk> earnings Conference call at this time, all participants are in listen only mode. After the speakers presentation. There will be a question and answer session to ask a question during that portion of the cool you want me to press Star one well your telephone please be advised to today's conference is being recorded it'd be a required any further extends pittsburgh.

To start in Seattle.

I'll now hand to conference over to your speaker today far higher senior Vice President commercial. Please go ahead.

Welcome everyone and thank you for joining US with me today are they left field interim CEO, Judy box, Chief Scientific Officer, MVP Research and development beaten all of you recent corporate events and provide a brief financial overview of the second quarter 2020, well then open the call for questions for which we will all be.

They all that before we begin let me remind you that during today's conference call. We will make forward looking statements that represent the company's intentions expectations or beliefs concerning future events. These forward looking statements are qualified by important factors set forth in today's press release of the company's filings with the FCC, which could cause actual results could differ.

Were materially from those important such forward looking statements information discussed on todays call is accurate as of today, we do not intend to update with that let me turn call over today.

Thanks for good afternoon, Thank you for joining us.

In the second quarter, we made an important decision to commit all resources towards the development of our first in class PDK, one inhibitor Ethernet spiked and as we evaluate the path forward for backup or not.

We remain dedicated to our mission of developing targeted inhibitors for cancer patients.

We believe there could be significant potential for programs as important new treatment options for patients.

As we focus on research and development efforts on SNS by Ken We're continuing to look for opportunities to strengthen the pipeline in organization to drive our mission.

Your further characterizing SNS by 10 in order to define potential clinical development path in both solid in hematologic malignancies.

Although early preclinical studies have revealed that she can't you weigh mutated tumors are particularly sensitive to SNS by Ken.

This is important as TDK entry way alterations, our common human cancers and may prove to be useful biomarkers for broad investigation and that's it that's 510 as a monotherapy and in combination with other into cancer agents.

To that end SNS like 10 shows synergistic activity when combined with inhibitors of CDK for 6K last people see or Bcl two in breast cancer kick off meeting in lymphoma cell lines.

We are currently conducting IB, enabling studies and expect to present additional preclinical findings at a scientific meeting later this year with a target the filing I Andy by the first half of 2021.

As a reminder, last quarter, we made the decision to focus on SNS 510, that's a not advance our non covalent BTK inhibitor that can bring it into the plan phase two portion of the phase one be two trial in adults with BTK inhibitor resistant relapse refractory CLL or other b cell malignancies.

Second burden of continues to exhibit an excellent safety profile and show clinical activity all the though this was insufficient to support advancing to the phase two in BTK inhibitor resistant disease.

Once CLL patients experienced a partial remission and several patients had stable disease for over six months.

We expect to complete the wind down of the study this quarter and we'll plan for publication of the result.

This was not be outcome, we were hoping for we would like to thank patients and conditions for their participation in efforts.

You're calling evaluating next steps and best how fourth Rebecca burden, which given the drugs excellent safety profile could include investigation, and BTK inhibitor naive or I teekay driven indications.

Since making this decision in June we have taken several steps as an organization to ensure that we were in a strong position to develop estimates by 10, well leveraging additional pipeline opportunities as they arise.

In July we reduced our workforce by approximately 30% of our headcount to rightsize the company to achieve our objectives and preserve cash resources. Once again, we would like to extend our thanks to our affected employees for their contributions to said he says.

We also raised 12.6 million a net proceeds from an equity offering and repaid our outstanding debt.

This does provide us with sufficient capital through most of 2021.

In July we also announced plans to review strategic alternatives to maximize shareholder value that can include asset in licensing partnering and mergers and acquisitions.

We do not plan on providing updates on these efforts I must our board of directors has approved the transaction or otherwise to turn that further disclosure is appropriate.

I will now review financial results.

We ended the second quarter with 23.2 million in cash cash equivalents unrestricted cash.

In July we bolstered our cash position by raising an additional 12.6 million in net proceeds from an underwritten public offering of shares of our common stock and repaid all outstanding debt with Silicon Valley Bank of 5.7 million.

Cash used in operating activities was 11.5 million for the six months ended June Thirtyth 2020, as compared to 13 million for the same period in 2019, resulting primarily from the net loss of 12.2 million and changes in operating assets and liabilities.

In conclusion, we are well positioned and look forward to leveraging the strengths of our organization focusing on the development of SNS 510, well looking to maximize the value of Backerboard NIM, we look forward to providing updates over the coming months.

Before we turn to culinary I'd like to take a moment to acknowledge the industry wide impact of Coca 19, I'm proud of the flexibility of commitment that our entire team has demonstrated to maintain business continuity. During this unprecedented time.

Above all we hope everyone is staying safe and we like to extend our gratitude to everyone who's working so hard to address the covert 19 pandemic both on the front lines as well as those working to develop treatments in vaccines.

With that let's open the call to your questions operator.

Thank you very minor ladies and gentlemen to ask a question you will need to press star one on your telephone to withdraw your question press the pound or hash King. Please standby, while we compiled that Q and a roster.

Our first question is from hard clashing with Oppenheimer. Please go ahead.

Oh, great and thanks Dayton.

We'll be active just got a couple of questions on on SNS. Five 510. So one is that you publish some data last year Oh on the profile for drugs and it seems to be up Trina ATP and you know one of the things the body T T that Roche.

Also art you had a U.P.T. inhibitor and they were bought at Merck.

Is that you need could potentially be pantry, her meaning an approach where it could be.

You could apply therapy across many different tumor types does SNS like 10 at least your initial kinda for Adas preclinical kind of data seem to suggest that or do you think it'd be much more so tumor specific where you could you got R&D happening and I just got a quick follow.

Yeah, Thanks, George I'm Gonna have Judy address that thank you.

Yes. Thank you you're correct on because of where PDK. One is positioned signal transduction pathways. It does have the potential to have brought activity against a number of different cancers, both solid and he mulacek <unk>.

What we discovered last year our earlier this last year was that.

Cell lines with TV, Canterbury mutations are particularly sensitive and so this could be a biomarker for tumors most likely to respond to 510, and we want to continue to follow that.

Great.

Thanks, Judy and I assume you'll just kinda update us on that as we move along towards the idea correct.

Yes, we do you plan to presented a scientific meeting later this year.

Great and then the other question is even specifically it seems like you're seeing some activity synergistic on top of other molecules approaches like what's the what's the hurdle that you're going to apply some of these exceeded Q4 sixes have actually had very good activity in breast cancer, the data and the clinical data.

She has been fairly good how much better activity would you have to see in a preclinical models to be able to want to go you know into a combination setting in the.

Clinical.

Yeah, I mean, that's a good question I think we are.

During study.

To help us understand each of the possible combination partners.

With that and that's 510.

And then ethnic 10 has a potential a few rose in the breast cancers space.

One possibility would be to combine with CDK for six inhibitors too.

Extending the duration or a pace you remain sensitive to on drugs that inhibit that pathway. Another possibilities to study 510 in patients who have progressed from CDK foursix inhibitors, and depending on a <unk>, we're going to leverage.

Our pharmacology studies to really developer clinical plan moving forward.

Great. Thanks, Judy it's actually the questions.

If I talk thing can just how much generic question, it's kind of Mark Fran with Cowen and company. Please go ahead.

Yes, thanks for taking my questions I guess just on the strategic review is there.

Anything kind of on the critical path for 510, that's kind of a.

A major expense or just kind of a major commitment, but you will need going forward that you can lead to.

Finalized the strategic review in advance of or could this yeah go on that review you know extend even as long as it today I'd filing.

Yeah no. Thanks, Thanks, Mark Yeah, there's there's not you know any any specific big kind of gating item or getting expense with 510 were continue to press for instance, the I, Andy enabling studies and as it relates to the strategic review no that is a initiative that we've.

Started and and are very active in so you whether yeah I don't see want impacting the other.

Okay, great. Thank you.

Thanks, Mike.

Thank you and if I remind our lady sometimes money. They have a question just press Star then one.

Our next question from gene or turn off with Wells Fargo Securities. Please go ahead.

No.

For the uptake Nick on for Jim So.

Maybe the first one for me is.

So what do you some mechanism by which you know.

Yes.

Yes.

Okay.

Gene products, presumably then you did easy.

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Once.

You take it.

Uh-huh products gene is let's see.

Yeah.

I'm just trying to get the leap.

You know GLEI CDK.

Mutations sense.

Yeah that's.

Good.

Question I think.

Our fight.

It's not that 510, X. I'm city can three gene products. It's just it is that.

In tumor is that I have deletions and syndicate and two way our mutations in that too. So it's no longer functional 510 appeared to have.

Results in.

And hand, cytotoxicity, and then a tumor cell lines.

I think if you think about.

The drug as affecting the cell cycle and the gene products exceeded can two way being essentially tumor suppressor that you've taken a break off when you haven't mutations he can swing and a 510 I could come in and essentially.

We buy regulating the cell cycle through these other CDK overcome that.

Resistant or absence of tumor suppression.

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Thank you again.

I know some of the preclinical.

Models.

You see.

Activating mutations and three.

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Sure.

Have you been.

HM.

Yes.

Mm.

We don't have envy, though activity in that regard.

A number of studies are expected to be performed over the next month and that is something we could consider.

Yeah.

Well.

Perhaps.

And then my last question is.

His comments like some of the.

Oh.

Well well known.

Okay.

Yeah.

Thanks.

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Well, what do you see in times. It this is true.

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Inhibitor.

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Hello.

Yes.

Right. So I think it's a little too early for us to comment on.

Relative.

Induction of any type of T.I.T.K. inhibitor toxicity, but as you think jazz we are perhaps fortunate and that there are number or the proof he actually kinase inhibitors.

And the strategies to mitigate third toxicities.

Pretty well known now as well as a different approaches to selecting patients for clinical trials that could help in l. areas the risk of toxicity.

So that is part of our ongoing pharmacology toxicology investigation.

Thank you very much.

Thanks, Nick.

Thank you and I'm not showing any partner question. So Nick you I will turn the call back to go time will tell for his final remarks.

Well. Thank you thanks, everyone for participating on our call today stay well and we look forward to providing future updates good afternoon.

Thank you ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect.

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