Full Year 2021 Molecular Partners AG Earnings Call
Okay.
Operator: Good morning and thank you for standing by.
Good morning, and thank you for standing by and welcome to the publication of full year results 2021. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star one on your telephone please be advised that today's conference may be.
Unknown Executive: Welcome to the publication of Full Year Results 2021.
Operator: At this time, all participants are in a listen-only mode.
Recorded I would now like turn the conference over to your Speaker today, Seth Lewis head of IR. Please go ahead.
Operator: After the speaker's presentation, there will be a question and answer session.
Operator: To ask a question during this session, you'll need to press star 1 on your telephone.
Thank you and.
And welcome.
Welcome everybody to molecular partners 2021 year end results Conference call. My name is Seth Lewis head of Investor Relations and we are joined this morning by Patrick Schultz, Our Chief Executive Officer, and Andreas Emmenecker Chief Financial Officer.
Operator: Please be advised that today's conference may be recorded.
If you do not have a copy of today's results presentation. You may find it on the investors section of our website www Dot molecular partners Dot com under the events tab and then there is also available on the webcast link if you are listening to us webcast today.
<unk> will be making a few brief prepared remarks, and then we will open for your questions. If you're planning to ask a question. Please be sure you are dialed into the call as the webcast is listen only.
Note that management will be making certain forward looking statements during todays call and.
And these are forward looking statements may differ materially from future events are and will be reflected certain words, such as anticipate believe could expect.
And were similar to this but not including all of those.
Some key facts may differ materially than our expectations and we would refer you to our most recent filings.
On our website as previously noted if you are listening to this on replay. Please note that the call was recorded on March 16th 2022, and we would recurred you to refer to our website for the most recent announcements public filings as they may have changed since a recording of this call.
Operator: I would now like to hand the conference over to your speaker today, Seth Lewis, Head of IR.
With that I will turn the call over to Patrick. Please go ahead.
Operator: Please go ahead.
Hey, Thanks, Seth for the introduction also for the nice disclaimer.
I want to kick off with a very warm welcome from my side.
I'll give you also a moment to.
Bring up the slides on our that are on our homepage will keep the presentation for this year very sharp and Chris that we have more time for your questions I think thats, where we can add more value.
Seth Lewis: Thank you and welcome.
2021 was an amazing year and I do want to start the call by thanking my team and all parts of the team that made this an amazing year and we will work through to all the accomplishments, which were really many and that was only possible by teamwork and having really skilled experts working too.
Gather and really bringing forward drug candidates in all stages of development and that just to remind us during a global pandemic that at this point in time might be a bit less.
In front of US also because other things are more in front of us, but I do think it's far too early to call. It a day on the global pandemic and that will also be part I guess of the Q&A section, especially around <unk>.
Seth Lewis: Welcome, everybody, to Molecular Prtnrs' 2021 Year-End Results Conference Call.
So let's go to slide number three I hope you have the time to pull up the slides slide number three our the accomplishments of the last year and as you wanted to start with the R&D section.
Seth Lewis: My name is Seth Lewis, Head of Investor Relations, and we are joined this morning by Patrick Amstutz, Chief Executive Officer, and Andreas Ameneker, Chief Financial Officer.
Seth Lewis: If you do not have a copy of today's results presentation, you may find it on the Investor section of our website, www.molecularprtnrs.com, under the Events tab, and it is also available on the webcast link, if you are listening to us on the webcast today.
They are just to remind us we advanced and Toby bet from our preclinical compound within one year or two the phase two readout called empathy with Novartis with those amazing results showing that we can inhibit the virus that we can knock down viral load and protect around four out of five.
Seth Lewis: Management will be making a few brief prepared remarks, and then we will open for your questions.
<unk> patients from going to the emergency room.
Going to the hospital or dying and even nine out of 10, if you'd take emergency room out, meaning hospitalization and death.
At the same time, we advanced <unk> hundred six <unk> 10, we made the second priority to until we bet. So this is where we had let's call. It a calculated delay. Good news is we are now kind of back on track with that and we are testing weekly dosing with D. A.
To reduce irr's and find an optimized activity window 441, BP activation, namely for T cell activation.
We also have a new molecule in the clinic since last year. That's MTO 317, that's a CD 40 F. P. So very close to the <unk> concept and obviously there was a lot of cross talk between these programs and learnings from <unk> can go in 2017.
We're also proud to have nominated 533, which is a try specific.
T cell engaging <unk> tri specific by specific.
In AML I'll also touch on that drug on the next slide we're very proud of this one it is try specific as until we wrap if price specific but the mode of action is a bit more complex and it took us literally two years to engineer the right affinities and now we are approaching forward toward first in human.
And with that truck, where we see a lot of potential.
Underserved patient population.
At the same time, we initiated a new program that's there.
<unk> radio ligand therapy program with Novartis, and we close the deal there I'll come to that on the same slide the bids lower down but also they're starting a new activity on our platform and staying with the new <unk>. We introduced the switch concept, which is a unique feature that you can build into Dar pins.
You can make a dark either binds target date for target would be something that is much more difficult to do with let's call. It conventional binding proteins like antibodies for us. This is a new technology feature that we will be looking to move into production in this year and also the years to come.
Moving from R&D to the corporate side also there are lot of activities, though we lifted our company in the U S. So half an hour dualistic company raising $63 million in cash.
Empathy results they trigger the option exercise of Novartis for them. So we bet with a $150 million payment and reminding us that we have 22% royalties in.
In the high income countries.
And also their radio ligand partnership with Novartis was attached to a $20 million upfront and milestones then also royalty. So overall also on the corporate slashed cash side.
Fruitful year that now gives us funds that carry us well into 'twenty, five and Andreas will point that out in more detail in his part of the presentation.
Seth Lewis: If you're planning to ask a question, please be sure you are dialed into the call as the webcast is listen-only.
So the one slide we have as an outside number for that sort of a reminder, what we're all doing that's our core business and then simple. It's three dimensions. It's we take dark and features that are dark and unique we turn it into differentiated candidates. So candidates build the mono the RP.
Multi <unk> that are different than what you'll find with other therapeutic modalities and then that aims to benefit patients. So the patient benefit.
I wanted to kick off with the Blue boxes. That's the core that's multi specificity and then the last years you will have heard me tell many times and cranes are repeat proteins are nature choice for multi specifics and thats one natural angle that we have and the one thing I wanted to point out is that if.
Seth Lewis: And please note that management will be making certain forward-looking statements during today's call, and these forward-looking statements may differ materially from future events and will be reflected in certain words such as anticipate, believe, could, expect, and words similar to this, but not including all of those.
Seth Lewis: Some key facts may differ materially than our expectations, and we would refer you to our most recent filings on our website, as previously noted.
You say multi specifics many people here by specifics and it is not only by specifics it's try.
Seth Lewis: If you're listening to this on replay, please note that the call was recorded on March 16, 2022, and we would encourage you to refer to our website for the most recent announcements and public filings, as they may have changed since recording this call.
Tetra Pinto and so on as you see in these pictures so it's far beyond conventional bi specificity.
Seth Lewis: With that, I will turn the call over to Patrick.
In the middle there, we have 310 and $3 17. These are molecules that work by co engaging two targets and only the coe engagement triggers activity. So it's a smart dropped that looks for both targets. If it binds them at the same time, it activates immune cells from dendritic cells b cells.
Seth Lewis: Please go ahead.
Patrick Amstutz: Hey, thanks, Seth, for the introduction, also for the nice disclaimer, and I want to kick off with a very warm welcome from my side.
On the 317 more towards the T cells for 310.
Now the only but let's call. It a little kink. There is that these are activators of immune cells, but likely will not have single agent activity. So they need to be combined in the suit such are more programs to be partnered so we added a layer of strategy into that that we would also from now on.
Or from Denon look for programs, which have call. It single agent activity or at least show themselves or short show their activity.
Our single agent. So we're now branching to antibody bet, that's the Tri specific sorry.
Sars Cov two inhibitor it binds the <unk> of the Spike protein and it was designed to prevent the escape is we all have witnessed.
Specially when we showed the data on Omicron, where I think we were really the only compound. After first generation that is still inhibiting viral variant.
And to my intro statement, we do think that Theres next variance to come and we are very confident then and Sylvia can help us if those and windows viral variant show up.
Moving now to <unk> three three that's also try specific than engaging T cell engage and here. The complexity is different as in Soviet pets, three super potent binder, we have two engineered the affinity of 533 to three targets, namely CD $33 70 and 100.
Third 23, and these targets are all not you need for the AML cells. They are also found on hematopoietic stem cells. So the trick was to make a dark and that does not kill mono expressing healthy hemopoietic stem cells, but has a favor for the AML the leukemic stem.
<unk> sells that then are killed and this is what we did in two years optimizing affinity engineering and now we're proud of this molecule moving towards the clinic.
Having said that I will now go to let's call them branch out of the Blue box the multi specificity as our team has also invested other DARPA and features that can lead to differentiation, namely the radical simplicity, which actually speaks to small size high affinity.
Patrick Amstutz: I'll give you also a moment to bring up the slides that are on our homepage.
Patrick Amstutz: We'll keep the presentation for this year very short and crisp so that we have more time for your questions.
Patrick Amstutz: I think that's where we can add more value.
Patrick Amstutz: 2021 was an amazing year, and I do want to start the call by thanking my team and all parts of the team that made this an amazing year, and we will work through all the accomplishments, which were really many, and that was only possible by teamwork and having really skilled experts working together and really bringing forward drug candidates in all stages of development, and that's just to remind us during a global pandemic that at this point in time might be a bit less in front of us, also because other things are more in front of us, but I do think it's far too early to call it a day on the global pandemic, and that will also be part, I guess, of the Q&A section, especially around InfoWebinar.
Patrick Amstutz: So, let's go to slide number three.
And if you go into the radio ligand therapy field, what people call the delivery H and they call. It the vector. So here, we're using dark pens as delivery vector to deliberate payloads. In this case a radio ligand, but you can also think of drug conjugate so that could be sub idea of those activity.
Patrick Amstutz: I hope you have the time to pull up the slides.
And here it is all about small size high affinity to penetrate deep into the tumor stay there long, but not affect the whole system long term as you will have a very short systemic half life. We're excited to move that forward mainly in the collaboration with Novartis, but we'll also invest some of our.
Patrick Amstutz: Slide, number three are the accomplishments of the last year, and I do want to start with the R&D section.
Activities to look into additional programs next to the PARP ones.
And then I'm moving to the Green side, the other side, which is the switch concept and that's this dark pinta carries the blue and yellow binding site and as you see just by the steric positioning of the binding site in one they start Ping has to decide who might bind to bind a or b it cannot bind.
Both at the same time and by tuning the affinities to these targets and by the abundance of the targets in the system or not we have built or we can program. The dark to act as a switch that locally oriented specific situation opens up and activates we like to call. This a small.
Art drunk and while this is not yet built into a candidate.
We are have a few ideas what we want to do and we also invite want to invite other companies other groups biologists medics to think about how to best use this technology.
So far was maybe more a dream and I think we can make that reality.
With that I'll come to the upcoming milestones.
I'll start with an Tobey back here. This is with Novartis you'll also.
Patrick Amstutz: There, just to remind us, we advanced in Sovibed from a preclinical compound, within one year to the phase two readout called Empathy with Novartis with those amazing results showing that we can inhibit the virus, that we can knock down viral load and protect around four out of five patients from going to the emergency room, going to the hospital or dying, and even nine out of ten if you take emergency room out, meaning hospitalization and death.
I have to accept that we cannot speak too much about it as novartis is in the lead and we get information that we can then share or not and often kind of we are not generating that information of distance with novartis.
There is you a review ongoing obviously theres also parallel discussions with governments about stockpiling and getting ready for the next variant to come plus and this is something that will likely be a virology day for us.
In Q2 of this year, where we want to present more data and Novartis has an elaborate presentation.
The strategy for the compound for this year.
Patrick Amstutz: At the same time, we advanced AMCH506, MPO310.
I'm moving now to amplify those six here, we will expect to have more data on the weekly dose thing that we didnt share with Amgen that they can review and we just didn't have a decision mid of this year.
How that program can.
Move on $3 17 initial data so likely very similar data through 310 by second half of this year and also 533 going into the clinic towards the end of this year.
Radio ligand therapy I did touch on there, it's mostly collaboration with neighbor, but also additional work that we will be starting up ourselves and a side note on a big kept part that's the ophthalmology drugs that we have gotten back there's a few sites in the back of this presentation. We now have a full package on the.
Patrick Amstutz: We made that a second priority to Sovibed, so this is where we had, let's call it a calculated delay.
Let's call it new safety, we have gathered feedback of the agency Howard trial would look like or need to look like to get these towards approval and together with the data the path forward, we can now engage with potential collaborators.
Patrick Amstutz: Good news is we are, now kind of back on track with that, and we are testing the weekly dosing with the aim to reduce IRRs and find an optimized activity window for 4-1-BB activation, namely for T-cell activation.
Patrick Amstutz: We also have a new molecule in the clinic since last year. That's MPO317. That's a CD40FAP, so very close to the AMCH506 concept, and obviously, there is a lot of, crosstalk between these programs, and learnings from AMCH506 can go into 317.
Patrick Amstutz: We're also proud to have nominated 533, which is a trispecific T-cell engager, so a trispecific bispecific in AML.
Patrick Amstutz: We're very proud of this one.
Patrick Amstutz: I'll also touch on that drug on the next slide.
Patrick Amstutz: It is trispecific, as in Sovibed is trispecific, but the mode of action is a bit more complex, and it took us literally two years to engineer the right affinities, and now we are approaching forward towards first in human with that drug where we see a lot of potential in an underserved patient population.
On their interests and how they see it and if there is a partner for a path forward.
With this I would close this part and I would hand over to Andreas to give us the highlights on the key figures and financial side.
Patrick Amstutz: At the same time, we initiated a new program.
Thank you Patrick.
Patrick Amstutz: That's the radioligand therapy program with Novartis, and we closed the deal there.
I am now on slide six and I'm happy to tell you more about the 'twenty one financials and also maybe more importantly, the outlook for eastern coming years on that.
Patrick Amstutz: I'll come to that on the same slide a bit lower down, but also there starting a new activity on our platform, and staying with the new, we introduced the switch concept, which is a unique feature that you can build into DARPins that you can make a DARPin that either binds target A or target B, something that is much more difficult to do with, let's call it conventional binding proteins like antibodies.
Patrick Amstutz: For us, this is a new technology feature that we will be looking to move into product in this year, and also the years to come.
And on site.
Patrick Amstutz: Moving from R&D to the corporate side, also there a lot of activities, so we listed our company in the U.S., so have now a dual listed company raising $63 million in cash.
Only cover some highlights till you find many more details you can get appendix of the presentation and of course, he did young importantly, 'twenty, yes available on our website.
So the numbers for 'twenty one do not include anything surprising it's always in the latest public guidance and those will be in our own internal budget.
We recognized total revenues and other income of $9 8 million compared to nine 8 million the year before the total expenses of $73 2 million.
<unk> means we invested about five 5 million more than the year before.
Led to an operating loss of 63.4 million compared to $68 three.
Net financial loss was just.
Oh point 4 million excuse me compared to $4 4 million the year before this is rather volatile year to year because of we.
We'd like it to unrealized currency losses in our U S dollar and euro cash position or the unrealized.
And we do not do active 18, because we plan to keep the currency in the size and the amount that we expect to be needed going forward with two M. Two.
Cute on our on our plans.
Bottom line each resulted in a net loss of $63 8 million, which is 1 million more than.
The year before.
Net cash used for operating activities in 2021 was 91 million, which is about 20 million more than our P&L expenses due to our contributions to the manufacturing of commercial supply of Dolby bet.
We ended the year with a solid cash balance of $132 8 million and 163 ftes on payroll.
I move to slide seven with our balance sheet has put the end of 'twenty. One it continued to be strong and dominated by the cash position.
End of 'twenty, one it was $132 million as solid equity position 173 million and no deaths early.
Early this year in pieces to bolt.
On the bottom right side early this year, we were able to add another $170 million to our cash balances with the receipt of $150 million for the option exercise for Enzo event as well as the $20 million from neighbor on the new our LTE a regular leasing therapy collaboration signed in December last year.
Brought our cash balance to close to 300 million or to be more precise $291 million as to the end of February 22.
The contract liabilities of 35 2 million are expected to be recognized into revenue in 2002, OLED subject to the progress in costs of the underlying collaborations and programs at Amgen and Novartis and Swiss government.
Words, these are not financial liabilities.
From the balance sheet until they go into revenue so they're nonrefundable.
All other assets and other liabilities are mostly related to leads pension accounting is realistic and general working capital positions.
With that I move to my last slide and maybe most important one so we had a very exciting start into the year with D. A.
Patrick Amstutz: The empathy results, they triggered the option exercise of Novartis for Insovibab with a $150, million payment and reminding us that we have 22% royalties in the high-income countries.
Patrick Amstutz: And also the radioligand partnership with Novartis was attached to a $20 million upfront, and milestones and then also royalties.
Great and so we have that data and belief that the <unk> option exercise by Novartis, which triggered a 150 million payment as I said before and you're also adding the $20 million four from the nipple collaborations so we.
Increased that balance sheet to close to 300 million by the end of February .
Patrick Amstutz: So overall, also on the corporate slash cash side, a very fruitful year that now gives us funds that carry us well into 2025, and Andreas will point that out in more detail in his part of the presentation.
Patrick Amstutz: So, the one slide we have is now slide number four, that's sort of the reminder what we're, all doing, that's our core business.
And with that we have secured the funding into 25, so more than three years from now.
Patrick Amstutz: And in simple, it's three dimensions.
Patrick Amstutz: It's we take DARPIN features that are DARPIN unique, we turn it into differentiated candidates, so, candidates built of mono-DARPINs, multi-DARPINs, that are different than what you find with other therapeutic modalities, and then that aims to benefit a patient, so the patient benefit.
Patrick Amstutz: I want to kick off with the blue boxes, that's the core, that's multispecificity.
Patrick Amstutz: And in the last years, you will have heard me tell many times, ankrins or repeat proteins, are nature's choice for multispecifics, and that's one natural angle that we have.
In a very good position to execute on our plan and also considering the rough biotech markets out there.
Patrick Amstutz: And the one thing I want to point out is that if you say multispecifics, many people here are bispecifics, and it's not only bispecifics, it's tri, tetra, penta, and so on, as you see in these pictures, so it's far beyond conventional bispecificity.
Patrick Amstutz: In the middle there, we have 310 and 317. These are molecules that work by co-engaging two targets, and only the co-engagement triggers activity. So, it's a smart drug that looks for both targets, if it binds them at the same time, it activates immune cells from the dendritic cells, B cells, on 317, more towards the T cells, for 310.
Patrick Amstutz: Now, the only, let's call it a little kink there, is that these are activators of immune cells, but likely will not have single agent activity, so they need to be combined, and as such, are more programs to be partnered.
This excludes and Thats important any potential further payments from existing or new partnerships, including the potential 22% royalties on <unk> sales as well as potential milestone payments from Amgen Board.
Patrick Amstutz: So, we added a layer of strategy into that that we would also, from now on, or from then on, look for programs which have, call it, single agent activity, or at least show themselves, or show their activity as single agent.
Neither.
In terms of P&L expense, we guide for between $75 million to $85 million for the year 'twenty 'twenty. Two this is about 10% more than last year.
For total full year 2002, we anticipate to make operational profit and positive cash flows as a result of the large collections. We made early this year.
Patrick Amstutz: So, we're now branching to Ensovibep, that's the trispecific SARS-CoV-2 inhibitor, it binds the RBD of the spike protein, and it was designed to prevent escape, as we all have witnessed, especially when we showed the data on Omicron, where I think we were really the only compound of the first generation that is still inhibiting that viral variant, and to my intro statement, we do think that there's next variants to come, and we are very confident that Ensovibep can help us if those, and when those viral variants show up.
Patrick Amstutz: Moving now to 533, that's also trispecific, then engaging T-cell engagers, and here the complexity is different.
Patrick Amstutz: As Ensovibep has three super potent binders, we had to engineer the affinity of 533 to three targets, namely CD33, 70, and 123, and these targets are all not unique for the AML cell, they are also found on hemopoietic stem cells.
Patrick Amstutz: So, the trick was to make a darpen that does not kill mono-expressing healthy hemopoietic stem cells, but has a favor for the AML, the leukemic stem cells that then are killed, and this is what we did in two years optimizing affinities and engineering, and now we're proud of this molecule moving towards the clinic.
Patrick Amstutz: Having said that, I'll now go to, let's call and branch out of the blue box, the multi-specificity.
Patrick Amstutz: As our team has also invested other DARPIN features that can lead to differentiation, namely the radical simplicity, which actually speaks to small size, high affinity.
Patrick Amstutz: And if you go into the radioligand therapy field, what people call the delivery agent, they call it the vector.
Patrick Amstutz: So here, we're using DARPINs as delivery vectors to deliver payloads, in this case, radioligands.
How much of this profit will be at the end, we cannot guide because it very much depends on the success of Enzo event.
And as always this guidance is subject to progress and changes in our pipeline.
With that I am and at the end happy to take more detailed questions if needed on this call or in one on ones and I hand back to Sue.
Patrick Amstutz: But you can also think of drug conjugates.
Or Patrick.
Thanks Andrea.
Both.
Patrick Amstutz: So that could be a sub-idea of those activities.
Later, we're okay to go for questions now please.
Patrick Amstutz: And here, it is all about small size, high affinity to penetrate deep into the tumor, stay there long, but not affect the whole system long term, as you will have a very short systemic half-life.
Thank you as a reminder to ask a question you will need to press star one on your telephone.
Draw your question.
Please press the pound key.
First question comes from Richard <unk> with J P. Morgan Your line is open.
Hi, Thanks for taking my questions.
A couple of things.
Patrick I know you mentioned that the process of EUA is is with novartis, but any any insight any help you can give us on timing or probably agree with that that price that.
That would be question one.
Secondly, just on the empathy trial and the subcutaneous version of it and say that that could you give us an update on our part B has that started and recruitment there.
That trial might be recruiting them and the subcutaneous.
Cutaneous fashion thoughts on Oh on progress there and then finally, maybe just the virology day can we see quite a glass on all of the.
Virology candidate this year I know, it's not part of your your targets Ah or news fly, but just thoughts that please thanks very much.
Hey, Thanks, Richard all really great questions that I'll be happy to elaborate on as much as I can.
Patrick Amstutz: We're excited to move that forward, mainly in a collaboration with Novartis, but we'll also invest some of our activities to look into additional programs, next to the partner ones.
Patrick Amstutz: And then I'm moving to the green side, the other side, which is the switch concept.
So the EUA as you know was filed its in the hands of Novartis in an active process and they are working very closely with the agency on this.
Patrick Amstutz: And that's this DARPIN that carries the blue and the yellow binding site.
Patrick Amstutz: And as you see, just by the steric positioning of that binding site in one, this DARPIN has to, decide whom I bind.
Patrick Amstutz: Do I bind A or B?
Patrick Amstutz: It cannot bind both at the same time.
Patrick Amstutz: And by tuning the affinities to these targets and by the abundance of the targets in the system or not, we have built or we can program this DARPIN to act as a switch that locally or in a specific situation opens up and activates. We like to call this a smart drug.
Patrick Amstutz: And while this is not yet built into a candidate, we have a few ideas what we want to do.
Patrick Amstutz: And we also want to invite other companies, other groups, biologists, medics, to think about how to best use this technology that so far was maybe more a dream.
Patrick Amstutz: And I think we can make that reality.
From what we hear.
Discussion is going well and there is real interest I guess front from the agency to dig.
In two days I can guide you on the time I don't think there is a stop date I think this is definitely.
Something that kind of both sides are navigating so we don't know and we if we couldnt share what the timing is and I don't think there is a fixed timeline.
Patrick Amstutz: With that, I'll come to the upcoming milestones.
The empathy side I think I can just speak maybe a bit in general terms you were asking about the part b into sub Q.
Sure.
Part or let's say injection that would definitely also add let's call. It a more broad application opportunity for and Sylvie pet I.
I think what we all saw it is that with omicron.
The situation changed in that that many more people now have covet, but also less are ending up in the hospital so to repeat part a and part b the outcomes as quasi impossible as you will have less hospitalization. So either you have a huge number of patients or you move too.
Other end points or you have to wait for our next variant that I think will come and then you're back and.
I think those discussions are all ongoing and now also novartis internally plus the agency how to deal with this here nothing has been decided there is no active trial at the moment, so active to actually host towards winding down but the soft curious.
We're not dosing patients part B is not not going forward until we know how we want to navigate that space.
On the one hand this is disappointing as you would want to have immediately around part b and to stop Q on the other hand, it's also sort of it.
And this is a term Seth coins, we have a last mover advantage because at the moment also no one else will be able to bring a coffee dropped forward on the endpoints that we had.
So it's it pro and con and one so we need to navigate the space maybe move towards let's say different outcome could be viral load reduction could be symptom reduction, but hospitalization is is a difficult one or maybe deaths.
So so far and there is nothing decided but those are the thoughts that are sort of obvious.
And we are debating, but also novartis at the agency are looking into.
Well now move to the virology question, Yes, we are working on a few viruses.
Patrick Amstutz: I'll start with Ensovibed.
Patrick Amstutz: Here, this is with Novartis.
Patrick Amstutz: You'll also have to accept that we, cannot speak too much about it as Novartis is in the lead.
Patrick Amstutz: And we get information that we can then share or not.
We have not disclosed which ones we will not have final data by the R&D day, but R&D the virology day, but we won't give you an update on our ideas on some of the virus since we're working on but at that point in time, we will not have nominated candidates now obviously, that's what we want to do so this will be.
Patrick Amstutz: And often, kind of, we are not generating that information.
Patrick Amstutz: Now, this is with Novartis.
Patrick Amstutz: There is a UA review ongoing.
Patrick Amstutz: Obviously, there's also parallel discussions with governments, about stockpiling and getting ready for the next variant to come.
Patrick Amstutz: Plus, and this is something that will likely be a virology day for us in Q2 of this year, where we want to present more data.
Patrick Amstutz: And Novartis has an elaborate presentation strategy for the compound for this year.
A day, where we will hopefully be able to show more data and so we bet. We'll also have more data coming there I mean that was an interim 29 day cutoff, we should have more data from that plus at one point in time also with the 91 day data.
Patrick Amstutz: I'm moving now to Amgen 506.
Patrick Amstutz: Here, we will expect to have more data on the weekly dosing that we, can share with Amgen that they can review.
Patrick Amstutz: And we should then have a decision mid of this year, how that program can and if move on.
Then we will definitely talk about our ideas in virology and may be a bit the progress on one or the other virus, but it but you are right to point out. The obviously the only speaking about candidates 80% of our coworkers are working on candidates or pre candidate stage research candidate.
And we hope to move into development and yes in virology, we have for a few a handful of candidates we're looking into.
Thank you very much.
Thanks.
Thank you. Our next question comes from Georgia, Giordano with Cowen and company. Your line is open.
Thank you so much and congratulations on all the progress.
Yeah.
Three on us.
Yes.
But what additional data might be required from regulatory agencies ahead of receiving EUA approval is there do you expect anything.
Kind of like clinical data the agency would need and Ah I can you plan to submit additional follow up data showing efficacy against omnicom.
Patrick Amstutz: 317 initial data, so likely very similar data to 310.
And then on the 170, what did we learn from three and that might be applicable to the development of a 31 seven specifically for the monotherapy.
A monotherapy trial.
Do you expect any monotherapy activity and then maybe if you can talk about the <unk>.
Tangible partnership opportunities and lastly on pricing.
Patrick Amstutz: By second half of this year, and also 533 going into the clinics towards the end of this year.
If you can just.
Ill briefly talk about some of the challenges we've seen to date with bi specific antibodies in ammo cold targeting CD 33 or city. Once you see with C D City.
Have you identified any structural tradeoffs of combining multiple gardens.
Patrick Amstutz: Radioligand therapy I did touch on.
Patrick Amstutz: There is mostly a collaboration with NIBR, but also additional work that we will be starting, up ourselves.
Patrick Amstutz: There's a few slides in the back of this presentation.
Yep. Thanks, all great questions, So I'll start with Enzo and data.
Patrick Amstutz: And a side note on Abicapar, that's the ophthalmology drug that we have gotten back.
Patrick Amstutz: We now have a full package on the, let's call it, new safety.
Patrick Amstutz: We have gathered the feedback of the agency, how a trial would look like or need to look, to get this towards approval.
I mean it all.
Patrick Amstutz: And together with the data, the path forward, we can now engage with potential collaborators, on their interest and how they see it and if there is a partner for a path forward.
All would be so the data that we could show the agents here at Novartis can show the agencies all additional data from part a and part B is not pulling on and so I think that is just safety data. After they twenty-nine theres just more there is efficacy data so call it maybe long call with data.
That might be showing up there. So those are the data pieces that novartis is collecting but also additional data that we just didn't have then.
For sure I mean, the paint the sample is 400 patients that is not the largest trial. So we definitely are looking for with when we can start part b and gather just more data in patients with until we bet moving forward, especially as also Richard was pointing out to be able to.
Patrick Amstutz: With this, I would close this part and I would hand over to Andreas to give us the highlights on the key figures and financial side.
Andreas Ameneker: Very good.
Andreas Ameneker: Thank you, Patrick.
Andreas Ameneker: So, I am now on slide 6 and I'm happy to tell you more about the 21 financials and also, maybe more important, the outlook for this and coming years on the finance side.
Andreas Ameneker: I only cover some highlights, so you'll find many more details in the appendix of the presentation, and of course, in the annual report of the 20th available on our website.
Andreas Ameneker: So the numbers for 21 do not include anything surprising.
Andreas Ameneker: It's all within the latest public guidance and also within our own internal budget.
Andreas Ameneker: We recognize total revenues and other income of $9.8 million compared to $9.3 million the, year before. We include total expenses of $73.2 million, which means we invested about $5.5 million, more than the year before.
Andreas Ameneker: This led to an operating loss of $63.4 million compared to $58.3 million the year before.
Andreas Ameneker: Net financial loss was $0.4 million compared to $4.4 million the year before. This is rather volatile year to year because it's related to unrealized currency losses, on our US dollar and euro cash position, but it's unrealized.
Andreas Ameneker: And we do not do active hedging because I plan to keep the currencies in the size and, amount that we expect to be needed going forward to execute on our plans.
Andreas Ameneker: Bottom line is resulted in a net loss of $63.8 million, which is $1 million more than the, year before.
Andreas Ameneker: Net cash used for operating activities in 2021 was $91 million, which is about $20 million, more than our P&L expenses due to our contributions to the manufacturing of commercial supply of Enzobit.
Andreas Ameneker: We ended the year with a solid cash balance of $132.8 million and $163 FTEs on our payroll.
Go into a sub Q formulation that would definitely be the best for application. So I think that the sub Q is important part, but thats not linked to the EUA.
You were also asking about omicron. So that data is all preclinical and from what we know and also how the agency has seen that the preclinical data.
Live virus by our subsidiary <unk> data is good enough to expand the label for the variance. So this was also done for Lilly antibody that did show.
Positive effect.
Specific testing, but not on the omicron patients, but in vitro on omicron. So we believe our data that we have from the lap is strong enough to cover all support the clinical setting and then hopefully that.
Also for future variants that could come from Amit <unk> I heard it as now paired with Delta Chrome and who knows what the next variance will be I think theyre just a word of caution to all of US I mean, I remember a year ago, everybody said that wave is over in your product is not needed and we feel a bit.
Same this year, we sort of predicted that people will say you don't need it now now it's over but I do think next fall will be here in new variants will come.
Andreas Ameneker: I move to slide 7 with our balance sheet.
With that I'll go for 310, $3 17, and maybe just quickly remind you of the data that we have so and maybe what the molecule doors. So you dose you co engage.
Andreas Ameneker: As per the end of 21, it continued to be strong and dominated by the cash position.
Andreas Ameneker: End of 21, it was $132 million.
Andreas Ameneker: A solid equity position, $173 million and no debt. Early this year, and this is the bullet on the bottom right side, early this year, we, were able to add another $170 million to our cash balance with the receipt of $150 million for the option exercise for Enzoviweb, as well as the $20 million from NIPR on the new, RLT radioligand therapy collaboration signed in December last year. This brought our cash balance to close to $300 million, or to be more precise, $291, million as per the end of February 22.
Andreas Ameneker: The contract liabilities of $35.2 million are expected to be recognized into revenue, in 2022, always subject to the progress and costs of the underlying collaborations and programs with Amgen, Novartis, and Swiss government.
And in three tenths.
Work at that.
Andreas Ameneker: In other words, these are not financial liabilities, but parked on the balance sheet until they, go into revenue, so they are non-refundable. Other assets and other liabilities are mostly related to lease, pension accounting, as well, as equipment and general working capital positions.
Andreas Ameneker: With that, I move to my last slide, and maybe most important one, so we had a very exciting, year with the great Enzoviweb data, and with that, the option exercise by Novartis, which triggered a $150 million payment, as I said before, and we also added a $20 million from the NIPR collaboration, so we increased the balance sheet to close to $300 million by the end of February, and with that, we have secured the funding into 2025, so more than three years from now.
And for won't be beat that leads to co engagement in the tumor that leads to activation of T cells. If you give too much.
Andreas Ameneker: We are in a very good position to execute on our plan, also considering the rough biotech, markets out there. This excludes, and that's important, any potential further payments from existing or new partnerships, including the potential 22% royalties on Enzoviweb sales, as well as potential milestone payments from Amgen or from NIPR in Boston.
Andreas Ameneker: In terms of P&L expense, we guide for between $75 million to $85 million for the year 2022. This is about 10% more than last year.
Andreas Ameneker: For total full year 2022, we anticipate to make operational profit and positive cash, flows as a result of the large collections we made early this year. How much this profit will be at the end, we cannot guide, because it very much depends, on the success of Enzoviweb.
Andreas Ameneker: And as always, this guidance is subject to progress and changes in our pipeline.
Find both targets saturate both targets individually.
Get activation that leads to a bell shaped activation curve. So you don't want to overdose.
Andreas Ameneker: With that, I am, at the end, happy to take more detailed questions, if needed, on this, call or in one-on-ones, and I hand back to Seth or Patrick.
Seth Lewis: Thanks, Andres.
Seth Lewis: Appreciate it both.
Operator: Operator, we're okay to go for questions now, please.
Operator: Thank you.
Operator: As a reminder, to ask a question, you'll need to press star 1 on your telephone.
Operator: Our first question comes from Richard Vosser with J.P. Morgan.
At the same time time, keeping some high doses, especially you can also see infusion related reactions that we also reported as quality the only side effect.
Operator: To withdraw your question, please press the pound key.
So going to let's call it the lower more control those by weekly dosing, we are hoping to kind of reach both less irr's and better exposure profile now the overloading or under loading system and from the data we have on that that should translate hopefully not one on one.
But very closely from 310 to $3 17, again debate bell shaped curve and the activation we have.
Are we cannot comment on IRR assess we first have to dose escalate to higher doses. If that also would show for $3 17, but those are the dimensions, we would look into and hopefully learn from from one to the other so we're also looking into a weekly dosing and the three weekly dosing for $3 seven.
<unk> may be even do it in parallel not to lose time and find different dosing schemes.
Can be later used for combination trials for $3 17.
I hope that is helpful.
Then.
Maybe the partnership are directly linked to 317 or three tend to question for $3 17, you're activating dendritic cells macrophages b cells.
And that is upstream of T cells T cells for 310, that's the T cell World. We have partnered with Amgen is they have a lot of T cell engaged and that combination makes sense.
2017 that is upstream can be really combined with many.
Approaches in oncology is it immuno oncology is a more conventional oncology. So there. We would also be open for partnerships as only activating the immune system will not be enough to also their combo trials will be needed and the partner that can then to look into more than one.
Combination I think would be beneficial for the molecule and for us as a company as we will not be able to run several trials in parallel.
I will now go to phase III three that's the Tri specific bispecific and yes.
A key problem in that we are trying to solve is that many of these targets on AML cells I was talking about and you brought up <unk> 33 in 123.
Are not exclusively found on AML cells and in our term we call them. These are not cleaning targets. The problem is that you then get on target side effects. So you are killing healthy sales off the blocks system. So hammer poetic stem cells, you also get a lot of.
Cytokine release, you get cytokine storm and you can measure that in the test tube, but also in the clinics as some of these molecules have been stopped and then less active forms of them have been moved into the clinic.
And I think macrogenics, what's the most recent one to do so maybe Thats correct me if that was the wrong one but I think they just gave an update to move to a less active form now.
Now at the same time.
We have a molecule that binds these targets with low affinity so on the healthy cells, where you have a low expression you do have expression, but maybe just one and not two and at a lower level you are not killing those cells and then on the AML cells on the blast, but especially on the leukemic stem.
<unk> sales, you'll find high expression of at least two of these targets that we are targeting and we see very nice, killing but we also see at the same time that we are not having decided effect on the healthy blood cells and this therapeutic window that we hope to open is really the differentiation.
<unk> of this approach.
I hope that was helpful and please.
Follow up if I did not cover your questions.
Thanks for so much incredibly thorough and answered all the questions. Thank you and congratulations again.
Thanks George.
Thank you. Our next question comes from Jo Walton with Credit Suisse. Your line is open.
Richard Vosser: Your line is open.
Richard Vosser: Hi, thanks for taking my questions.
Richard Vosser: A couple of things.
Richard Vosser: Patrick, I know you mentioned the, process of EUA is with Novartis, but any insight, any help you can give us on timing or progress of that process, that would be question one.
Thank you just a few clarification questions. Please.
Thank you.
Chris you talked about the agency, but can we assume that this is both the U S and the European agencies and all that.
You understand would it be sensible for us to model to Q2 2 approval in at least one of those regions.
Can I ask him.
Originally you said that you thought you'd need about 1700 patients in empathy given the change in the market background and you.
A few of people needing to go to hospitals.
You're suggesting that this would have to be materially higher than that in order to get the data that you won't change.
Is it possible for you to do a sub cuts.
Smaller study or do you have to start.
Before you can start the sub couch with it because the sub cut clearly is the one with it.
Commercial need I would've thought Kelly.
Kelly I ask Paul if you can give us any hint of.
What we said annual meetings with the FDA.
In the sense of whether we would be expecting to see effectively a rerun of a phase III study.
Material.
<unk> study that would be required that may help us.
Workouts all probabilities of you getting.
All in there on that.
The final question is one on finance.
In your 20-F, it says that you've got to University of Zurich, a royalty payment to make which is the royalties that you get.
If we were lucky enough to see material and stuff like that.
Revenues this year would we see a royalty go out.
That would take that net contribution of 22% to down materially.
And if you could also just help us on any Elsa.
Elements that might come into your P&L.
Great.
You mentioned that you had some manufacturing costs last year, where do we see any manufacturing costs. This year or is it just a simple royalty relationship with Novartis would just pay you effectively all of that is now done.
Many thanks.
Hey, Thanks, Joe.
Patrick Amstutz: Secondly, just on the empathy trial and the move to subcutaneous versions of Insovabed, could you give us an update on Part B, how that started and recruitment there and where that trial may be recruiting and the subcutaneous version thoughts on progress there?
I'll try my best to kind of cover all of those questions. So the first is the EUA nothing formally speaking yes.
Patrick Amstutz: And then finally, maybe just the virology day, can we see progress on other virology candidates this year?
And Novartis is going to look for global approval as fast as they can for until we bet I think it is not caused an EUA in Europe or other legislation I think there is some more a rolling review.
Patrick Amstutz: I know it's not part of your targets or news flow, but just thoughts there, please.
Patrick Amstutz: Thanks very much.
Patrick Amstutz: Thanks, Richard.
Patrick Amstutz: All really great questions that I'll be happy to elaborate on as much as I can.
And yes, Novartis has started those discussions, including Europe , including Switzerland, including the U S and just historically speaking the U S is usually the fastest in those discussions and maybe also the most meaningful for potential government contract. So that's why I was hinting more towards.
The U S, but you're absolutely right. This is going to be a global approach.
But to be honest with you.
Sorry, Patrick yes players to be specifically quarter to hurt her question the application for the EUA is with the FDA.
Patrick Amstutz: So, the EUA, as you know, was filed.
That's that's where that there is no EUA application in Europe .
Submitted.
Because of Patrick's thing, it's true that they don't have that exact process, but that is yet to come there is nothing new.
Filing in Europe at this moment.
Yeah, but the discussions obviously pre date.
Dan.
Sure.
And then the model I think that I have to leave to you how you model that in the timelines and how you see that.
I would rather go toward a patient and yet the way I think we see it at the moment.
If you run an army Crump patience and you want the same endpoints as in part eight for part B you would need more patients I think that is rather logic or you change the endpoint gopher viral load reduction or symptom reduction. So I think it can go both ways and Novartis is debating everything and they will definitely.
Patrick Amstutz: It's in the hands of Novartis and is an active process and, they are working very closely with the agency on this.
Patrick Amstutz: And from what we hear, this discussion is going well and there is real interest, I guess, from the agency to dig into this.
Patrick Amstutz: I can't guide you on the time.
Patrick Amstutz: I don't think there is a stop date.
Update us and the public once they have made progress on that discussion.
How to bridge. Some cup is a good question I think there's many ways how to deal with that I cannot comment on them also.
Patrick Amstutz: I think this is, definitely something that kind of both sides are navigating.
Patrick Amstutz: So, we don't know.
So.
Patrick Amstutz: And if we would, we couldn't share what the timing is.
I think is it bridging trial is it more a PK trial the PD trial.
Patrick Amstutz: And I don't think there is a fixed timeline.
I Wouldnt know, what the best strategy to days and Novartis will give us both the updates once they know more.
Let's quickly go to the Big part question, which is a good one so just to remind us what kind of the bid to face up to programs. So we have partners that 10 years ago with Allergan. They had run a phase two three sorry phase three call teachers Sequoia so to phase three.
Patrick Amstutz: On the empathy side, I think I can just speak maybe a bit in general terms.
Patrick Amstutz: You were asking, about the Part B and the sub-Q part or let's say injection that would then definitely also add, let's call it a more broad application opportunity for Insomniab.
Patrick Amstutz: I think what we all saw is that with Omicron, the situation changed in that many more people now have COVID, but also less are ending up in the hospital.
Patrick Amstutz: So, to repeat Part A and Part B on the outcomes is quasi-impossible as you will have less hospitalization.
Patrick Amstutz: So, either you have a huge number of patients or you move to other endpoints or you have to wait for a next variant that I think will come and then you're back.
That actually had a positive readout for the every two and every three monthly dosing, but we have this inflammation rate of 15%.
<unk> improved the material in the first step and brought that down to below 10% in Maple trial that was a smaller phase II trial, and then abbvie took over and further improve the material.
Especially also the Psi range and how you apply the material. So they brought this whole manufacturing, including sovereigns to next level actually this is summarized on slide 17 of our deck if you're interested.
We then got it back.
We decided to go more for gene therapy, and not injected that checks in ophthalmology that was a strategic decision. We got it back and we then took all the data looked at the data and also engaged with the agency to find out what trial would be needed to go towards.
Right.
Towards approval and I think we kind of have summarized that theyre. So resubmission of the BLA would be.
Patrick Amstutz: And I think those discussions are all ongoing.
Patrick Amstutz: And I know also Novartis internally plus the agency how to deal with this.
Patrick Amstutz: Here, nothing has been decided.
Patrick Amstutz: There's, no active trial at the moment.
Patrick Amstutz: So, active two actually also was winding down.
<unk> with the primary readout at 48 weeks is a controlled trial, so likely against Eylea. So.
They don't like to work blinded in ophthalmology, and masked trial and if everything looks good we can use the cedar and Sequoia.
<unk> two for approval so.
It's something in between it's not the full blown phase three that we had it's also not only a little safety trial. So it's somewhere in the middle there. We know what we would propose that is not yet in the public but it is more than only a short safety trial, but it's also not the.
1000 patient trial, so it's new.
Likely in the middle there and I think it allows us to now engage with potential partners understand what the investment would be to get <unk> approved and I think this is for us the unknown. So far I think everything else, we cannot put together, but how the.
The field has kind of evolved I mean, there was the new Kodiak data about what is the first time up approval for an interesting setting and will test the waters and see how companies come back I think good news for US is that we believe that the inflammation question is solved there's also learnings for us there and now we have to.
Find out if there is still a commercial opportunity here and with that partner to unlock the commercial opportunity. So we're not guiding that we will invest any money here, but we'll invest that needs to find out if there is a partner shipped to be done.
Patrick Amstutz: But the sub-Q is we're not dosing patients.
Patrick Amstutz: Part B is not going forward until we know how we want to navigate that space.
Patrick Amstutz: On the one hand, this is disappointing as you would want to have immediately run Part B and do sub-Q.
Patrick Amstutz: On the other hand, it's also sort of, and this is a term Seth coined, we have a last mover advantage because at the moment also no one else will be able to bring a COVID drug forward on the endpoints that we had.
Patrick Amstutz: So, it's pro and con in one.
Patrick Amstutz: So, we need to now navigate the space, maybe move towards, let's say, a different outcome, could be viral load reduction, could be symptom reduction, but hospitalization is a difficult one or maybe death.
I'll hand over to Andreas for the financial question.
Yes. Thank you Joe for the question So on University Syrek, no, we do not owe them any fees.
Or sub royalties.
Or until we get because debate patent expired last fall.
We don't owe them anything.
And maybe.
It's also in the 20-F, we paid one five into the University would trust the state support Ddos.
A lot of this project and that engagement.
We paid $1 5 million at those tables of last year.
So that is on that question and the other one on then so yes.
Royalty play this year.
Do not expect any foods of costs on the other side actually.
On the contrary, we were able to recharge in Milwaukee.
14 million algo for 'twenty, nearly an investment we made into commercial supply.
Partial recharge that you still that will be paid very soon and deals who can recharge diavik ftes on our site. We are working on the project, obviously, he's going down now.
Fast, but we can recharge synthetic.
So it's a pure royalty play.
Thank you very much.
Thank you.
Thank you and as a reminder, if you would like to ask a question press. The Star then the one key on your Touchtone telephone. Our next question comes from Dana Great bus with SBB Leerink. Your line is open.
Thank you for the question Theres been a lot of good discussion already so perhaps to an end.
For me one I think you mentioned Lilly's recent approval of bad not approval emergency use authorization.
The Mab and I'm wondering if you could talk about the data package they had holistically compared to.
Any similarities and are there any differences that.
That could make it different.
Perhaps different than literally for the agency and my second question is I wonder how youre thinking about.
And COVID-19 and whether Youre working on.
Additional follow on Garten that you may be could pull out.
Barry emerges that is resistant to any type of path and sort of what that process looks like in front of them.
Yes.
Yes.
Hey, Thanks, Dana and.
Keep it very topline on Lilly as I am not the expert I don't know exactly kind of all the data part there I would say kind of let's say what is similar in what less.
I think what is similar is that Lilly antibody also buying some can neutralize omicron and I think a deep understanding also by the agency that our next variant is likely to come that also come from that Varian. So our need for <unk> to have something that is active on.
<unk> and <unk>.
So it may be even broader applicable than an antibody. So I think it is not the wild speculation, but I would hope that the an agency sees our line through all the variants.
<unk> really antibody, yes, it works and omicron, but I think antibodies now have a history of also losing activity on new variants I think that's the similarity the exact data they had I can speak to I don't know the data I do know that the agency definitely was very open to speak with Lilly and I think that is maybe a bit there.
And that obviously then he had a first antibody has a large database for that antibody and an active discussion.
We would see that they could hit the street the street running with the agency and have more data referenced in us and I think that is just the way. It is and I think those are the albeit things, but let's say on the positive side, a clear need to be creative to get an emergency use.
Patrick Amstutz: So, so far, and there is nothing decided, but those are the thoughts that are sort of, obvious and we are debating, but also Novartis and the agency are looking into.
Patrick Amstutz: I'll now move to the virology question.
<unk> for a molecule that can be actually saving many life. If a next variant comps and I think thats exactly where we position ourselves.
Your question to endemic Covenant there is a good one I do think we are hopefully hitting endemic and just meaning that the case don't rise, but and then it can be at a very high number and also new variants can at any point comment just to remind you new variants come from old Varian and the more vet more virus low.
<unk> is out there in the globe the higher the probability of a new variant coming up so.
So I think we're at the highest risk ever for the next variance. We also now know that variance can breakthrough vaccines. So that's definitely another good thing so I personally am.
Very glad that we have in <unk> ready for whatever to come.
Now you also hinted towards let's call. It a variant that would shake off and Sylvia.
Yes, we don't know what the next variant based but we also do know from our internal work work, Yeah, Haemocoel, often sylvia could be and yes, we already have a new version for that so there is a candidate that's call. It and so are we back to zero that would cover for some escape mutation.
That are and we're known for and so we have also published.
That we have ready to move forward and obviously also kind of making the molecule also a bit more stable and developable keep in mind and Sylvia.
Selected in six weeks. So we also just did an upgrade for the whole molecule.
Great. Thank you.
Thanks.
Thank you and we have a question from drew pin buds.
<unk> with <unk>.
F U W. Your line is open.
Thanks, a lot for taking my questions.
I'm surprised your guidance.
For operating expenses is relatively.
Low considering you have a lot of cash.
Your cash burn rate into 25 suggests that youre not planning to materially increase those expenses.
In the middle of this year youre going to present a virology.
Did it with potential candidates potential programs.
Is it.
We're planning that you keep us now.
Based on the assumption that Enzo will be better.
Sales and do you have a second planning.
In case of Enzo.
The success.
<unk> will come up and say, okay, now with double all our expenses because we.
Do you expect a lot of more cash.
Thanks, Roop and for a very good question and one that we are also turning up and down here.
You see the honest answer is that our programs that we are investing in are still early and even if we doubled the numbers of those the cash impact is not that high.
<unk> Park comes later.
And.
It would mean, if we really want to change that we would heavily invest in $3 17, or an 310 ourselves. So that's why we could spend more money, but that's also where we don't think we can make a big difference and we have to be strategic with where we invest our money. So as much as we would like to turn up.
The spend and invest more at this point in time, our pipeline is not be able to do too much of that.
Having said that I do think if we would then get let's call it.
Massive pumps more will have to really think hard how to invest that money going forward and I don't want to kind of start any speculation, but we will definitely also turned to stone internally and see what we can do be it on the manufacturing side of DARPA and others, maybe to invest more in pandemic.
Things like that are definitely something we are being approached by many.
And things like that but I do think at this point in time, but let's call. It our conservative spend does not that conservative.
Just more reflect the stages off the molecules, we have and if we would like to invest I think it would almost means that we acquire a molecule that is further ahead than ours.
Thanks.
Thank you and there are no other questions in the queue I'd like to turn the call back to Patrick for closing remarks.
So I'll kick off and then Seth can close the call. So thanks for everyone for joining the call also thanks to all our analysts for US that is really good questions that allow us to kind of go a bit deeper and we wanted to spend time on the questions I think thats, where we can work.
Patrick Amstutz: Yes, we are working on a few viruses.
Patrick Amstutz: We have not disclosed which ones.
Together and build the understanding of where this company is and how it is going forward and I do want to thank all our collaborators, especially novartis for a great collaboration on and Sylvia.
And then all of my co workers in molecular partners for an amazing year.
So hard work out there and just so much.
<unk> shipped working through those moments that we're not always easy and really delivering the value for first patient, but then also shareholders over the last year. So thanks for that.
Patrick Amstutz: We will not have final data by the R&D day, R&D, the virology day, but we will give an, update on our ideas on some of the viruses we're working on.
Patrick Amstutz: But at that point in time, we will not have nominated candidates.
Thanks, Patrick thank.
Patrick Amstutz: And obviously, that's what we then want to do.
Patrick Amstutz: So this will be sort of a day where we will hopefully be able to show more data.
Thank you all for joining us today really appreciate it and happy to follow up with any questions that you still have and we will make sure that we are available for that throughout the day and in the coming days from here.
Patrick Amstutz: And so we bet we'll also have more data coming there.
Patrick Amstutz: I mean, that was an interim 29-day cutoff.
Georgi Yordanov: Your line is open.
Patrick Amstutz: We should have more data from that, plus at one point in time also the 91-day data.
Georgi Yordanov: Thank you so much, and congratulations on all the progress.
Patrick Amstutz: Then we will definitely talk about our ideas in virology and maybe a bit of progress on, one or the other virus, but you're right to point out, obviously, I was only speaking about candidates.
Georgi Yordanov: Three on us, from us on Insomniab, what additional data might be required from regulatory agencies, ahead of receiving EUA approval?
Patrick Amstutz: Eighty percent of our coworkers are working on candidates or pre-candidate stage research, candidates that we hope to move into development.
Georgi Yordanov: Is there, do you expect anything kind of like clinical that the agency would need?
Patrick Amstutz: But yes, in virology, we have a few, a handful of candidates we're looking into.
Georgi Yordanov: And I guess, do you plan to submit additional follow-up data showing efficacy against Omicron?
Patrick Amstutz: Brilliant.
Georgi Yordanov: Yeah.
Georgi Yordanov: And then on 3.1.7, what have we learned from 3.10 that might be applicable to the development, of 3.1.7 specifically for the monotherapy trial?
Patrick Amstutz: Thank you very much.
Patrick Amstutz: Hey, thanks.
Georgi Yordanov: Do you expect any monotherapy activity?
Patrick Amstutz: Thanks.
Patrick Amstutz: All great questions.
Georgi Yordanov: And then maybe if you can talk about the potential partnership opportunities.
Patrick Amstutz: Thank you.
Patrick Amstutz: So I'll start with ENSO and data.
Georgi Yordanov: And lastly, on 5.3.3, maybe if you can just briefly talk about some of the challenges, we've seen to date with bispecific antibodies in AML, co-targeting CD33 or CD123 with CD3.
Georgi Yordanov: Our next question comes from Georgi Yordanov with Cowin and Company.
Patrick Amstutz: So I mean, it all would be, so the data that we could show the agency or Novartis can show, the agency is all additional data from Part A, as Part B is not going on.
Look forward to updating you in future events coming up including the <unk>, which we discussed we will be coming with the actual date for that in the near future.
Georgi Yordanov: Have you identified any structural tradeoffs of combining multiple DARPAs?
Patrick Amstutz: And so I think that is just safety data after day 29, there's just more, there's efficacy, data, so we'll call it maybe long COVID data that might be showing up there.
Patrick Amstutz: I hope that is helpful.
Patrick Amstutz: So those are the data pieces that Novartis is collecting, but also additional data that, we just didn't have then.
Patrick Amstutz: Then maybe the partnership, I'll directly link to 317 or 310, the question.
Patrick Amstutz: For sure, I mean, the sample of 400 patients, that is not the largest trial, so we definitely, are looking forward when we can start Part B and gather just more data in patients with ENSO-EBET moving forward, especially as also Richard was pointing out, to be able to go, into a sub-Q formulation that would definitely be the best for application.
Patrick Amstutz: For 317, you're activating dendritic cells, macrophages, B cells, and that is upstream, of T cells.
Patrick Amstutz: So I think that the sub-Q is an important part, but that's not linked to the EUA.
Patrick Amstutz: For 310, that's the T cell world.
Patrick Amstutz: You were also asking about Omicron, so that data is all preclinical and from what we know, and also how the agency has seen that, that preclinical data, so live virus but also pseudotype virus data is good enough to expand the label for the variants, so this was also done for a lily antibody that did show positive effects in specific settings but not on Omicron patients but in vitro on Omicron, so we believe our data that we have from the lab is strong enough to cover also for the clinical setting and then hopefully that's also for future variants that could come from Omicron, I heard it is now paired with Deltacron and who knows what the next variants will be, I think they are just a word of caution to all of us, I mean I remember a year ago everybody said that wave is over, your product is not needed and, we feel a bit the same this year, we sort of predicted that, people will say, oh, you don't need it, now it's over, but I do think next fall will be here and new variants will come.
Patrick Amstutz: We have partnered with Amgen as they have a lot of T cell engagers and that combination, makes sense.
Patrick Amstutz: With that, I'll go for 310, 317 and maybe just quickly remind you of the data that we, have, so maybe what the molecule does, so you dose, you coengage FAP and in 310's work that's FAP and 4-1BB, that leads to coengagement in the tumor that leads to activation of T-cells, if you give too much and you saturate both targets individually, you don't get activation that leads to a bell-shaped activation curve, so you don't want to overdose.
Georgi Yordanov: Thank you.
Patrick Amstutz: 317, that is upstream, can be really combined with many approaches in oncology, is it immune, oncology, is it more conventional oncology, so there we would also be open for partnerships as only activating the immune system will not be enough, also there combo trials will be needed, and a partner that can look into more than one combination I think would be beneficial for the molecule and for us as a company as we will not be able to run several trials in parallel.
Patrick Amstutz: At the same time, giving some high doses especially, you can also see infusion-related reactions, that we also reported as quasi the only side effect, so going to let's call it the lower more controlled dose by weekly dosing, we are hoping to kind of reach both less IRRs and a better exposure profile, not overloading or underloading the system.
Georgi Yordanov: Congratulations again on the progress.
Patrick Amstutz: I'll now go to 5.3.3, that's the trispecific-bispecific, and yes, the key problem that we are trying, to solve is that many of these targets on AML cells I was talking about, and you brought up CD33 and 123, are not exclusively found on AML cells, and in our term we call them these are not clean targets. The problem is that you then get on-target side effects, so you are killing healthy cells, of the blood system, so hemipoietic stem cells.
Patrick Amstutz: And from the data we have on that, that should translate hopefully not one-on-one but very, closely from 310 to 317, again, the bell-shaped curve and the activation, we haven't or we cannot comment on IRRs as we are, of course, have to dose escalate to higher doses if that also would show for 317, but those are the dimensions we would look into and hopefully learn from one to the other, so we're also looking into a weekly dosing and a three-weekly dosing for 317, maybe even do it in parallel not to lose time and find different dosing machines that then can be later used for combination trials for 317.
Georgi Yordanov: Thanks.
Patrick Amstutz: You also get a lot of cytokine release, you get cytokine storm, and you can measure that, in the test tube, but also in the clinics as some of these molecules have been stopped and then less active forms of them have been moved into the clinic.
Georgi Yordanov: Thanks, George.
Patrick Amstutz: And I think Microgenics was the most recent one to do so, maybe Seth correct me if that, was the wrong one, but I think they just gave an update to move to a less active form.
Georgi Yordanov: Thank you.
Patrick Amstutz: Now at the same time, we have a molecule that binds these targets with low affinity, so on the healthy cells where you have a low expression, you do have expression, but maybe just one and not two, and at a lower level, you are not killing those cells, and then on the AML cells, on the BLAST, but especially on the leukemic stem cells, you find high expression of at least two of these targets that we are targeting.
Joe Walton: Our next question comes from Joe Walton with Credit Suisse.
But that will be occurring in the first half of this year.
Patrick Amstutz: And we see very nice killing, but we also see at the same time that we are not having, the side effects on the healthy blood cells, and this therapeutic window that we hope to open is really the differentiation angle of this approach.
Joe Walton: Your line is open.
Seth Lewis: We will be coming out with the actual date for that in the near future, but that will be occurring in the first half of this year.
Patrick Amstutz: I hope that was helpful, and please follow up if I did not cover your questions.
Joe Walton: Thank you.
Seth Lewis: And please let us know if there's anything else we can help you with.
Patrick Amstutz: No, thank you so much, incredibly thorough in answering all the questions.
Joe Walton: Just a few clarification questions, please.
Please let us know if there's anything else. We can help you with have a great day.
Joe Walton: Your EUA progress, you talked about the agency, but can we assume that this is both the U.S, and the European agencies, and on the timeline that you understand, would it be sensible the subcut with it?
Joe Walton: Because the subcut clearly is the one with a, you know, a particular sort of commercial need, I would have thought.
Seth Lewis: Have a great day.
Joe Walton: Can I ask on Abisipar, if you can give us any hint of what was said in your meetings with the FDA, in the sense of whether we would be expecting to see effectively a rerun of a phase three study.
Operator: Thanks, everybody.
Joe Walton: So, you know, a really material additional study that would be required that may help us work out our probabilities of you getting a partner on that.
Joe Walton: My final question is one on finance.
Operator: This concludes today's conference call.
This concludes today's conference call. Thank you for participating you may now disconnect.
Joe Walton: In your 20th, it says that you've got a, you know, a University of Zurich Royal payment to make, which is tiered on the royalties that you get.
Joe Walton: If we were lucky enough to see material and revenues this year, would we see a royalty go out, that would, you know, take that net contribution of 22% down materially this year?
Joe Walton: And if you could also just help us on any other elements that might come into your P&L, if Insofipeb comes on, you mentioned that you had some manufacturing costs last year.
Joe Walton: Would we see any manufacturing costs this year?
Joe Walton: Or is it just a simple royalty relationship where Novartis would just pay you effectively all of that is now done by them?
Joe Walton: Many thanks.
Patrick Amstutz: Hey, thanks, Jo.
Patrick Amstutz: And I'll try my best to kind of cover all those questions.
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Patrick Amstutz: So, the first is the EUA.
Patrick Amstutz: And I think formally speaking, yes, and Novartis is going to look, for global approval as fast as they can for Insofibeb.
Patrick Amstutz: I think it is not called an EUA in Europe or other legislations.
Patrick Amstutz: I think there is a more rolling review.
Operator: Thank you for participating.
Patrick Amstutz: And yes, Novartis has started those discussions, including Europe, including Switzerland, including the US.
Operator: You may now disconnect.
Patrick Amstutz: And just historically speaking, the US is usually the fastest in those discussions and maybe also the most meaningful for potential government contracts.
Patrick Amstutz: So, that's why I was hinting more towards the US, but you're absolutely right.
Patrick Amstutz: This is going to be, a global approach.
Patrick Amstutz: Sorry, Patrick.
Seth Lewis: Just to be specifically clear to her question, the application for the EUA is with the FDA.
Seth Lewis: There is no EUA application in Europe submitted because of, Patrick saying it's true that they don't have that exact process.
Seth Lewis: But that has yet to come.
Seth Lewis: There has not been an official filing in Europe, at this moment.
Seth Lewis: Yeah.
Patrick Amstutz: But the discussions obviously predate that.
Patrick Amstutz: And then the model, I think that I have to leave to you, how you model that and the timelines, and how you see that.
Patrick Amstutz: I would rather go toward the patients, and yes, the way I think we see it at the moment, if you run an Omicron patient and you want the same endpoints as in Part A, for Part, B you would need more patients.
Patrick Amstutz: I think that is rather logic.
Patrick Amstutz: Or you change the endpoints and go for viral load reduction or symptom reduction.
Patrick Amstutz: So I think you can go both ways.
Patrick Amstutz: And Novartis is debating everything, and they will definitely update us and the public once, they have made progress on that discussion.
Patrick Amstutz: How to bridge sub-COPs is a good question.
Patrick Amstutz: I think there's many ways how to deal with that.
Patrick Amstutz: I cannot comment on them.
Patrick Amstutz: So I think, is it a bridging trial, is it more a PK trial, is it a PD trial?
Patrick Amstutz: I wouldn't know what the best strategy today is, and Novartis will give us both updates, once they know more.
Patrick Amstutz: Let's quickly go to the Abhikipar question, which is a good one.
Patrick Amstutz: So just to remind us what kind of the bit to phase of the program, so we have partnered, that 10 years ago with Allergan. They had run a phase 2-3, sorry, phase 3 called Cedars-Sequoia, so two phase 3 trials, that actually had a positive readout for every two and every three monthly dosing. But we had this inflammation rate of 15%. Allergan improved the material in the first step and brought that down to below 10% in, a maple trial.
Patrick Amstutz: That was a smaller phase 2 trial. And then AbbVie took over and further improved the material, especially also the syringe, and how you apply the material.
Patrick Amstutz: So they brought this whole manufacturing, including syringe, to a next level.
Patrick Amstutz: Actually, this is summarized on slide 17 of our deck, if you're interested.
Patrick Amstutz: We then got it back as AbbVie decided to go more for gene therapy and not injected VEGFs, in ophthalmology. That was a strategic decision.
Patrick Amstutz: We got it back, and we then took all the data, looked at the data, and also engaged, with the agency to find out what trial would be needed to go towards approval.
Patrick Amstutz: And I think we kind of have summarized that there.
Thank you for participating.
Patrick Amstutz: So resubmission of the BLA would be possible with a primary readout at 48 weeks.
Patrick Amstutz: It is a controlled trial, so likely against ILEA, so masked.
Yeah.
Patrick Amstutz: They don't like the word blinded in ophthalmology, a masked trial.
Sure.
Patrick Amstutz: And if everything looks good, we can use the CDER and sequoia data for approval.
Patrick Amstutz: So I think it's something in between.
Patrick Amstutz: It's not the full-blown phase 3 that we had.
Patrick Amstutz: It's also not only a little safety trial, so it's somewhere in the middle there. We know what we would propose that's not yet in the public, but it is more than only, a short safety trial, but it's also not the thousand-patient trial, so it's nicely in the middle there.
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Patrick Amstutz: And I think it allows us to now engage with potential partners, understand what the investment, would be to get Abiquipor approved.
Patrick Amstutz: And I think this is, for us, the unknown so far.
Patrick Amstutz: I think everything else we cannot put together.
Patrick Amstutz: But how the, let's say, the field has kind of evolved, I mean, there was the new Kodiak, data, but then there was the Farisimab approval.
Patrick Amstutz: It's an interesting setting, and we'll test the waters and see how companies come back.
Patrick Amstutz: I think good news for us is that we believe that the inflammation question is solved.
Okay.
Patrick Amstutz: There's also learning for us there.
Uh huh.
Patrick Amstutz: And now we have to find out, is there still a commercial opportunity here?
Patrick Amstutz: And with that, a partner to unlock the commercial opportunity.
Yes.
Patrick Amstutz: So we're not guiding that we will invest any money here, but we'll invest at least to find, out if there is a partnership to be done.
Patrick Amstutz: I'll hand over to Andreas for the financial question.
Okay.
Andreas Ameneker: Yes.
Andreas Ameneker: Thank you, Joe, for the question.
Okay.
Andreas Ameneker: So in the University of Zurich, no, we do not owe them any fees or sub-royalties for, Enzobia because the base patent expired last fall. So we don't owe them anything.
Andreas Ameneker: However, maybe it's also in the 20th, we paid 1.5 million to the University of Utrecht, because they supported us a lot on this project and that engagement, we, for that, we paid them 1.5 million, that was paid also last year.
Andreas Ameneker: So that is on that question.
Andreas Ameneker: The other one on Enzobia, yes, it's a pure royalty play this year.
Yes.
Andreas Ameneker: We do not expect any further costs on our side.
Andreas Ameneker: Actually, it's on the contrary, we were able to recharge Novartis, 13 million out of the, 20 million investment we made into commercial supply.
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Andreas Ameneker: So that is a partial recharge that is still, that will be paid very soon.
Andreas Ameneker: And we also can recharge the direct FDs on our side working on the project.
Andreas Ameneker: Obviously, this is going down now very fast, but we can recharge the direct FDs.
Andreas Ameneker: So it's a pure royalty play.
Andreas Ameneker: Thank you very much.
Joe Walton: Thank you.
Okay.
Joe Walton: And as a reminder, if you would like to ask a question, press the star, then the one key, on your touchtone telephone.
Daina Graybosch: Our next question comes from Dana Graybosh with SVB Lyrinc.
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Daina Graybosch: Your line is open.
Daina Graybosch: Hi.
Daina Graybosch: Thank you for the questions.
Daina Graybosch: There's been a lot of good discussion already.
Daina Graybosch: So perhaps two on Enzobopap for me.
Daina Graybosch: One, I think you mentioned Lily's recent approval of BEB, not approval, emergency use authorization, for BEB Telovimab.
Daina Graybosch: And I'm wondering if you could talk about the data package they had holistically compared, to Enzobopap.
Daina Graybosch: Any, you know, similarities and are there any differences that could make it different, Enzobopap different than Lily's for the agency?
Daina Graybosch: And my second question is, I wonder how you're thinking about endemic COVID and whether you're, working on additional follow-on darpens that you maybe could pull out if a variant emerges that is resistant to Enzobopap and sort of what that process looks like internally.
Patrick Amstutz: Hey, thanks, Dana.
Patrick Amstutz: And I'll keep it very top line on Lily as I am not the expert.
Patrick Amstutz: I don't know exactly kind of all the data parts there.
Patrick Amstutz: I would say kind of, let's say what is similar and what less.
Patrick Amstutz: I think what is similar is that the Lily antibody also binds and can neutralize Omicron.
Patrick Amstutz: And I think a deep understanding also by the agency that a next variant is likely going, to also come from that variant.
Patrick Amstutz: So, a need to have something that is active on Omicron and so is maybe even broader applicable, than an antibody.
Patrick Amstutz: So, I think it is not wild speculation, but I would hope that an agency sees our line, through all the variants while the Lily antibody, yes, it works on Omicron, but I think antibodies now have a history of also losing activity on new variants.
Patrick Amstutz: I think that's the similarity.
Patrick Amstutz: The exact data they had, I can't speak to.
Yes.
Patrick Amstutz: I don't know the data.
Patrick Amstutz: I do know that the agency definitely was very open to speak with Lily, and I think that, is maybe a bit of difference that obviously Lily had a first antibody, has a large database for that antibody and an active discussion.
Yes.
Patrick Amstutz: So, I would see that they could hit the street running with the agency and have more data, to reference than us.
Yes.
Patrick Amstutz: And I think that is just the way it is, and I think those are the obvious things.
Patrick Amstutz: But let's say on the positive side, a clear need to be creative to get an emergency use, authorization for a molecule that can be actually saving many lives if a next variant comes.
Patrick Amstutz: And I think that's exactly where we position ourselves.
Patrick Amstutz: Your question to endemic COVID is a good one.
Yes.
Patrick Amstutz: I do think we are hopefully hitting endemic, and just meaning that the cases don't rise, but endemic can be at a very high number, and also new variants can at any point come.
Patrick Amstutz: And just to remind you, new variants come from old variants, and the more virus load is out there in the globe, the higher the probability of a new variant coming up.
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Patrick Amstutz: So I think we're at the highest risk ever for the next variant.
Patrick Amstutz: We also now know that variants can break through vaccines, so that's definitely not a good thing.
Patrick Amstutz: So I personally am very glad that we have Insovibeb ready for whatever to come.
Patrick Amstutz: Now, you also hinted towards, let's call it a variant that would shake off Insovibeb.
Patrick Amstutz: And yes, we don't know what the next variant is, but we also do know from our internal, work where the Achilles heel of Insovibeb could be, and yes, we already have a new variant for that.
Patrick Amstutz: So there is a candidate, let's call it Insovibeb 2.0, that would cover for some escape mutations that are and were known for Insovibeb, also published, that we have ready to move forward, and obviously also kind of making the molecule also a bit more stable and developable.
Patrick Amstutz: Keep in mind, Insovibeb was selected in six weeks, so we also just did an upgrade for the whole molecule.
Patrick Amstutz: Great.
Daina Graybosch: Thank you.
Daina Graybosch: Thanks.
Daina Graybosch: Thank you.
Rupin Bhojadian: And we have a question from Rupin Bhojadian with FUW.
Rupin Bhojadian: Your line is open.
Rupin Bhojadian: Thanks a lot for taking my questions.
Rupin Bhojadian: I'm surprised your guidance for operating expenses, of is relatively low considering you have a lot of cash and your cash burn rate into 25 suggests that you're not planning to materially increase those expenses.
Rupin Bhojadian: In the middle of, this year, you're going to present a virology candidate or potential candidates, potential programs.
Rupin Bhojadian: Is it your planning that you give us now based on the assumption that Insovibeb fails?
Rupin Bhojadian: And do you have a second planning in case of Insovibeb is a success?
Rupin Bhojadian: And then you will come up and say, OK, now we double all our expenses because we expect a lot of more cash.
Patrick Amstutz: Thanks, Rupin, for a very good question and one that we are also turning up and down here.
Patrick Amstutz: I think, you see, the honest answer is that our programs that we are investing in are, still early. And even if we double the numbers of those, the cash impact is not that high as the expensive part comes later.
Patrick Amstutz: And it would mean if we really want to change that we would heavily invest in 317 or in 310 ourselves.
Patrick Amstutz: So that's where we could spend more money.
Patrick Amstutz: But that's also where we don't think we can make a big difference.
Patrick Amstutz: And we have to be strategic with where we invest our money.
Patrick Amstutz: So as much as we would like to turn up the spend and invest more, at this point in time, our pipeline is not built to do too much of that.
Patrick Amstutz: And having said that, I do think if we would then get, let's call it massive funds more, we'll have to really think hard how to invest that money going forward.
Patrick Amstutz: And I don't want to kind of start any speculations, but we will definitely also turn the stones internally and see what we can do, be it on the manufacturing side of dark pins and others, maybe to invest more in pandemic readiness, things like that are definitely something we are being approached by many and things like that.
Patrick Amstutz: But I do think at this point in time, let's call it our conservative spend is not that conservative.
Patrick Amstutz: It just more reflects the stages of the molecules we have.
Patrick Amstutz: And if we would like to invest, I think it would almost mean that we acquire a molecule that is further ahead than ours.
Patrick Amstutz: Thanks.
Rupin Bhojadian: Thank you.
Operator: And there are no other questions in the queue.
Yes.
Patrick Amstutz: I'd like to turn the call back, to Patrick Amstutz for closing remarks.
Patrick Amstutz: So I'll kick off and then Seth can close the call.
Yes.
Patrick Amstutz: So hey, thanks for everyone for joining, the call.
Yes.
Patrick Amstutz: Also, thanks to all our analysts for also these really good questions that allow us to kind of go a bit deeper and we wanted to spend time on the questions.
Yes.
Patrick Amstutz: I think that's where we can work together and build the understanding of where this company is and how it's going forward.
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Patrick Amstutz: And I do want to thank all our collaborators, especially Novartis for a great collaboration on Insolvibet and then all my co-workers in Molecular Prtnrs, for an amazing year.
Patrick Amstutz: So hard work out there and just so much comradeship working through those moments that were not always easy and really delivering the value for first patients but then also shareholders over the last year.
Patrick Amstutz: So thanks for that.
Seth Lewis: Thanks, Patrick.
Okay.
Seth Lewis: Thank you all for joining us today.
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Seth Lewis: Really appreciate it.
Seth Lewis: Happy to follow, up with any questions that you still have and we will make sure that we're available for that throughout the day and in the coming days from here.
Seth Lewis: Look forward to updating you at future events coming up, including the virology day, which we discussed.
Yes.
Okay.
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Okay.
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Sure.
Yes.
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