Q3 2020 Sunesis Pharmaceuticals Inc Earnings Call

Maybe some gentlemen, thank you price 99 your conference call. It became momentarily. Thank you for your patience and please continue to spend on.

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Welcome to senescence pharmaceutical third quarter 2020, her name's conference call at this time, all participants on it and I'll listen on amount. After the presentation that will be a question and answer session to participate on that portion of the call you would need to press Taiwan on your telephone.

Please be advised that today's conference may be recorded if you're required any further assistance. Please Chris dot encierro to reach on operator.

I would now like to turn the conference over too far her senior Vice President commercial. Please go ahead Sir.

Thank you welcome everyone and thank you for joining us today.

With me on the call today or day, Misfeldt interim CEO, Judy Fox Chief Scientific Officer E. D V. A research and development David will start by reviewing recent corporate events and will provide a brief financial overview of the <unk> 20th 20, then open the call for questions.

We begin let me remind you that drink today's conference call, we will be making forward looking statements that represent the company and tensions expectations or beliefs concerning the future of that's the forward looking statements are qualified but important factor set forth in today's press release on the company's filing with the SEC, which could cause actual results to differ materially from those.

And such forward looking statements information discussed on today's call is accurate as of today and we do not intend to update with that ultra on the call over to day.

Thanks for good afternoon, and thank you for joining us.

This corner on primary focus has been the review of our strategic alternatives for the company as we are committed to finding a valued generating path for the future. This is our number one priority right now we've engaged M. T S health partners to assist in this process.

Has announced in July these potential transactions could include acid in licensing partnering and mergers and acquisitions we.

We do not plan on providing specific updates on these efforts on most of our board of directors has approved the transaction or otherwise determined that further disclosure is appropriate.

We are also continuing to build value in on internal and partner programs, including development of our first in class PDK wanting to hear that <unk> as soon as 510 and I N D, enabling studies and investigating the best that Ford Prefect Ibrutinib.

In October we presented preclinical data on our first in class became on inhibitor as soon as 510.

He observes synergies in the preclinical study support a potential role of P. D. K, one inhibition to reverse resistance and will improve activity of inhibitors on C. D. K four six and breast cancer.

C O two in them pharma any K Ross T 12 C U T D cancers.

Combination studies in mouse models are needed to validate these in vitro findings.

We also share it further characterization of estimates by 10 in vivo demonstrating demonstrating anti tumor activity in a C. D can to aid deleted MC activated D. L. D C L Mouses heliograph model.

Additional promising data from investigator sponsored research is beginning to emerge as well, which we anticipate being presented at a medical meeting in the first half of next year.

We continue to profile to the drug and work to address expected Piet free K inhibitor in touch with you just three dose regimen optimization strategies.

For a non cuvee on P. D K inhibitor that could Burton M. We are assessing the best Pet Ford, which may include partnering the program.

As a reminder earlier on the year, we made the decision to not advance <unk> into the plan phase two portion of the phase one b to trial and adults would be GK inhibitor resistant relapsed refractory C O L.

<unk> exhibited an excellent safety profile and showed clinical activity. Although this was insufficient to support advancing to phase two and PTK inhibitor resistant disease.

Further investigation for vector brute nope could include PTK inhibitor naive, our I T K driven indications as well as use in combination with other therapies.

We also have to partner programs.

Pan wrap inhibitor day, one O one formally tech bye baby.

100 with day, one biopharmaceuticals and bows rocks and partnered with Dinovo Biopharma.

We are excited to have both of these companies.

Both of these programs and dancing in the hands of these capable partners.

Emerging clinical data from day, one O one will be presented at the society of Neuro oncology annual meeting this month and we look forward to this program, making a positive impact for pediatric patients.

We remain a lean and focused company operating efficiently to achieve our objectives in.

In July we announced the reduction in work force of approximately 30 per cent of our headcount to right size of the company.

We also waves 12.6 million a net proceeds from an equity offering in the third quarter and we paid outstanding debt.

These steps are intended to provide us with sufficient capital through most of 2021, which brings me to <unk> The review of financial results.

Cash used an operating activities was 15.8 million for the nine months ended September 30th 2020, as compared to 18.4 million for the same period in 2019, resulting primarily from the net loss of 16.8 million, partially offset by adjustments for non-cash items of $1.1 million.

We ended the third quarter with $26 million in cash cash report lunch and restricted cash as compared to 34.6 million as of December 31st 2019.

We look forward to providing you with updates over the coming months.

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

Thank you and what's a reminder, ladies and gentlemen to ask a question on you would need to press star one on your telephone.

To withdraw your question same day press, the pound or <unk>.

One moment, while we compiled it Q&A roster.

At first question is from Justin can with open Heimer and company case go ahead.

Hi, good afternoon, everyone. Thanks for taking our questions just to from the first one is could you elaborate a little bit for us on maybe the timing and when you might receive greater clarity around strategic alternatives.

And any sort of additional corporate steps forward.

Yeah. Thanks, Justin Yeah, we're not providing any specific updates on the on the process, but we will do so if our board proves the transaction or or just determined that other further disclosures appropriate now providing you need any additional foods.

Okay understood and then maybe just on that P. D. K one front could you just detailed for us what sort of ongoing I N D. Enabling studies are currently running and what is your plan when we might see any updates from from those and you know just broadly speaking as you think.

About the early clinical development program, how how do you think about identifying through the target indication or indications I know you mentioned several in the opening remarks, but just wondering what might make the determination as to which ones might be first investigated over others.

Yeah, I'll have Judy enter this in thanks Justin.

We're evaluating S. S 510, and non clinical studies to better understand the therapeutic index three tennis regimen optimization.

And then as far as thinking about clinical indications I I think I mentioned before that city can to a appears to be on Margaret sensitivity to as soon as 510 and they're also different cancer sent over express P. D came on.

And so initial clinical program on what rethinking, having initiating a study and patients that have the city can to a aberrations uhm and out of that Uhm proceed into expansion uhm and get some indications most likely.

In combination pet with a potential <unk>.

Okay understood. Thanks for taking the question.

Thank you. Our next question comes from <unk> with a wells Fargo.

Jimmy online is open.

So sorry, it's medic on put you much [laughter] just channel and just put it on some on my apologies uhm.

In terms of the day to you presented Triple Me T. You know what was the reception pool from.

Potential collaborators, both academic and industrial.

I think it's hard to completely understand that from a virtual on meeting, but I wouldn't say that.

Uhm investigators name extremely interested in inhibitors of this pathway on in 510.

Okay, and you sort of alluded to combination therapy, what what is the priority for combination therapy on your mind.

I think that it's.

Hi, good place for us to get to profit as quickly as possible for example, anything on breast cancers typically agent given in combination with anti estrogen and then we're also won't be leveraging on the data different data that.

Will be coming out of our I S. Sars and I think you mentioned, we hope to have presentation on some of these data isn't the first half of next year.

Uhm and I gave my I mentioned this in his introduction cause the I N D. Finally still planned for the first half of next year.

So I think as we can clean a study so we'll make a data driven decision about the timing of the <unk>.

Okay. Thank you and then.

Just lost on for me on some of the day to be presented.

It's a triple meeting used to proved drugs.

On the day that did not so uhm have you entered into any discussions with potential collaborator force I, a K Ross T 12 P inhibitor.

Not at this time.

Okay.

Thanks to look forward to further updates.

Exactly.

Thank you and that's on a minder to getting back to you, ladies and gentlemen safely price star one alright.

Alright next question comes from earnings on you guys with calling please go ahead.

Hi, everybody on thank you for taking my my question just regarding your cash flow and where you mention of do like most of 2021.

What.

What does that does that died on include in <unk> in terms of the if they need help they will have a minimum plans for field day, one the name either.

Yeah No no. Thanks. Thanks for the question is is Judy just mentioned, we will continue to do work non clinically on on the P. D. K. One program you know just gives us the runway to get further characterize that that compound and as we get more data we can provide for the guy.

And so on on the upcoming milestones, but as as you highlight uhm you, we do with 26 million in cash as of the end of the third quarter do have good runaway moving forward.

Okay. Thank you.

Okay. Thank you.

Thank you and Sir I'm not showing any further questions in the queue. You May proceed with final remarks.

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

Thank you, ladies and gentlemen for participating in today's program. These conflicts that conference you right now and disconnect.

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