Q4 2022 MacroGenics Inc Earnings Call
Speaker 1: CVEtx
Speaker 2: Good afternoon. We will begin the Macrogenics 2022 Fourth Quarter Corporate Progress and Financial Results Conference call in just a moment. All participants are in a listen-only mode.
Speaker 2: at the moment and we will conduct a question and answer session at the conclusion of the call. At this point I will turn the call over to Jim Carroll.
Speaker 2: Senior Vice President, Chief Financial Officer of Macrogenics.
Speaker 3: Thank you, operator. Good afternoon and welcome to MacroJAM's conference call to discuss our fourth quarter 2022 financial and operational results.
Speaker 3: For anyone who has not had the chance to review these results, we should press release this afternoon outlining today's announcements.
Speaker 3: which is available under the investors tab on our website at macrogenics.com.
Speaker 3: You may also listen to this conference call via webcast on our website, where it will be archived for 30 days, beginning approximately two hours after the call is completed.
Speaker 3: I would like to alert listeners that today's discussion will include statements about the company's future expectations, plans, and prospects that constitute forward-looking statements for purposes of the Safe Harbor Provision.
Speaker 3: under the Private Securities Litigation Reform Act of 1995.
Speaker 3: Actual results may differ materially from those indicated by these four looking statements as a result of various important factors, including those discussed in the risk factors section of our annual quarterly and current reports filed with the FCC.
Speaker 3: In addition, any four looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date.
Speaker 3: While we may elect to update these four looking statements at some point in the future, we specifically disclaim any obligation to do so, even if reviews change except to the extent required by applicable law.
Speaker 3: And now I'd like to turn the call over to Dr. Scott Koenig, President and Chief Executive Officer of Macrogenics.
Speaker 4: Thank you, Jim. I'd like to welcome everyone participating via conference call and webcast today.
Speaker 3: This afternoon, I will provide key updates on our clinical program, but before I do so, let me first turn the call back to Jim who will review our financial results. Thank you, Scott. This afternoon, MacroGen has reported financial results for the year ended December 31, 2022, which highlighted our financial position as well as our recent progress.
Speaker 3: As described in a release this afternoon, macro JEMI's total revenue consisting primarily of revenue from collaborative agreements was $151.9 million for the year end of December 31, 2022 compared to total revenue of $77.4 million for the year end of December 31, 2021.
Speaker 3: Revenue for the year ended December 31, 2022, included recognition of the $60 million approval milestone from Prevention Bio related to Toplizumab's approval in the fourth quarter, $30 million in milestone payments from Insight related to retifamlamab, Marjensin S cells of $16.7 million compared to $12.3 million for the year ended December 31, 2022, included recognition
Speaker 3: December 31, 2021, and $14 million in contract manufacturing revenue.
Speaker 3: Our research and development expenses were $207 million for the year end of December 31, 2022 compared to $214.6 million for the year end of December 31, 2021. The decrease was primarily related to decreased retinalumab manufacturing costs for insight and research. compiler introduced lit witness
Speaker 3: and decreased costs related to our discontinued studies. These decreases were partially offset by increased development, manufacturing, and clinical trial costs related to vogromitimab duocarmazine, or what we now refer to as vograduo, increased expenses related to discovery projects, and preclinical molecules.
Speaker 3: The decrease was primarily related to decreased selling costs from Argenza, as well as decreased legal, consulting and stock-based compensation expenses.
Speaker 3: Our net loss was $119.8 million for the year in December 31, 2022.
Speaker 3: compared to the net loss of $202.1 million for the year on December 31, 2021.
Speaker 3: Subsequent to year end and as announced last week, we sold to a wholly owned subsidiary of DRI Healthcare Trust our royalty interest in future global net sales of T-zield or tiplizumab. We retain all other economic interests related to T-zield, including future potential regulatory and commercial milestones from prevention bio.
Speaker 3: In addition, we are eligible to receive up to $50 million from DRI upon the occurrence of prespecified events tied to the advancement of TZIL for the treatment of newly diagnosed type 1 diabetes, and may also receive an additional $50 million if TZIL achieves a certain level of net sales. In a few minutes, Scott will briefly discuss…
Speaker 3: Prevention Bios recent announcement that it had agreed to be purchased by Sanofi.
Speaker 3: And so before including cash received subsequent tier end, our cash, cash equivalents and marketless curies balance as of December 31, 2022 was 154.3 million compared to 243.6 million as of December 31, 2021.
Speaker 3: Please note that this cash balance also did not include the $45 million receivable from prevention related to the November FDA approval of two deals.
Speaker 3: Subsequent to year end, we received 15 million of the synonym, while the remaining 30 million is due by September 1, 2023.
Speaker 3: Finally, in terms of our cash runway, we anticipate that our cash, cash equivalence, and marketable securities balance is not expected.
Speaker 3: of $154.3 million as of December 31, 2022, plus projected and anticipated future payments from partners.
Speaker 3: Product revenues and $100 million proceeds from the DRI Royalty Sale should extend our cash runway through 2025.
Speaker 3: Our expected funding requirements reflect anticipated expenditures related to the Phase II Tamarack clinical trial, the planned Phase II study of large Urolumab and metastatic castration-resistant prostate cancer that Scott will tell you about momentarily, as well as our other clinical and pre-clinical studies currently ongoing. Now?
Speaker 4: I'll turn the call back to Scott. Thank you, Jim. Over the past eight months, we've demonstrated our ability to generate non-dilutive capital via partnering and royalty monetization efforts, which enabled us to achieve $250 million in non-dilutive funding, including $150 million from our partners during the second half of 2022.
Speaker 4: and another $100 million in funding in early 2023.
Speaker 4: As Jim mentioned, we are delighted to deliver on extending our cash runway through 2025.
Speaker 4: Beyond our financial position, I am exceptionally pleased to have two molecules originating from our portfolio over the regulatory finish line.
Speaker 4: During the fourth quarter, TZL joined Marjenda as FDA approved medicines and stands as testament to Macrogenics' ability to identify and develop product opportunities.
Speaker 4: Of course, we believe the best is yet to come and have high hopes for our proprietary pipeline of product candidates, which I will now walk you through. Let me start by providing an update on Vover Minimab Duo-Carmazine, or as Jim referred to it, Vover Duo.
Speaker 4: are ABC designed to deliver DNA-alkalating doracomyosin cytotoxic payloads to tumors expressing B7H3. B7H3 is a member of the B7 family of molecules involved in immune regulation.
Speaker 4: RoperDuo was designed to take advantage of this antigen's broad expression across multiple solid tumor types.
Speaker 4: We initiated the phase two portion of the Tamarack study of Oviduo in patients with MCRPC in late 2022.
Speaker 4: This study is designed to evaluate Vobra Duo in 100 patients across two experimental arms.
Speaker 4: two mgs per kg or 2.7 mgs per kg every four weeks, and initially included a control arm in which patients received a second androgen receptor axis targeted at agents or ARAD.
Speaker 4: The treatment landscape for patients with MCRPC has evolved, with declining acceptability regarding the use of a second ARED agent in patients who progressed on earlier therapies and approval of a radiopharmaceutical medication last year.
Speaker 4: With this backdrop, we have modified the trial by removing the ARAD control arm and the Phase III portion of the study with regulatory approval of the modified protocol obtained to date in several countries.zi
Speaker 4: We believe that this modification allows us to enroll Tamarack in line with our objectives, determine an optimal dose expeditiously, and allow us to provide a clinical update in 2024, potentially in support of a subsequent Phase III study in MCRPC. Next, let me update you on lorikelumab.
Speaker 4: are bi-specific tetravalent PD-1 by CTLA-4 DART molecules.
Speaker 4: At the ASCO Genitourinary Cancer Symposium a few weeks ago,
Speaker 4: We presented preliminary clinical results from a dose expansion single arm study of Laura Jirlimab in patients with advanced solid tumors in a poster session.
Speaker 4: Before I describe our data, I will remind you that checkpoint inhibition has not fared well in the treatment of patients with late-stage MCRPC.
Speaker 4: Previously, anti-CTLA-4 therapy, whether alone or in combination with an anti-PD-1 agent, resulted in increased risk for immune-related toxicity with very modest anti-tumor activity. We designed Lord General Med to have preferential blockade on dual PD-1 CTLA-4 expressing cells, such as tumor-infiltrating lymphocytes, or TILs, and a high risk of heart attack.
Speaker 4: which are most abundant in the tumor microenvironment.
Speaker 4: Highlights from the data we presented as of December 12, 2022 data cutoff were that 12 of 42 patients, or 28.6%, with MCRPC achieved greater than or equal to 50% PSA or PSA 50 reduction.
Speaker 4: including 9 or 21.4 percent who achieved greater than or equal to 90 percent PSA reduction or PSA 90.
Speaker 4: Neither of the 12 patients maintained their PSA 50 response for three months or longer.
Speaker 4: And we were very excited to report that 9 of the 35 patients, or 25.7%, who had measurable MCRPC achieved confirmed partial responses. Every one of the 9 patients who had confirmed PRs had received a prior ARAD.
Speaker 4: and all but one had previously received docetaxel.
Speaker 4: All nine had reductions in their PSA levels of greater than 90% as of the data cutoff.
Speaker 4: The overall safety profile observed across 127 patients from multiple solid tumor expansion cohorts was manageable.
Speaker 4: treatment related AEs occurred in 86.6% of patients, with the most common among them greater than 15% being fatigue, rash, pruritis, hypothyroidism, and pyrexia.
Speaker 4: Rates of greater than or equal to grade 3 TRAEs and immune-related AEs were 35.4% and 7.9% respectively.
Speaker 4: AEs resulted in treatment discontinuation in 25.2% of patients. There were no fatal AEs related to lorigerolumab.
Speaker 4: Based on the strength of this data, we plan to initiate a randomized phase 2 study of lorigerolumab in combination with docetaxel versus docetaxel alone in second line, chemotherapy-naive MCRPC patients in the second half of 2023.
Speaker 4: A total of 150 patients are planned to be randomized two to one.
Speaker 4: The current study design includes a primary study endpoint of radiographic progression-free survival.
Speaker 4: We will tell you more about this study later this year as we approach its start.
Speaker 4: And to repeat, as Jim mentioned earlier, both this study and the Tamarack study are included in our cash runway.
Speaker 4: In addition, we continue to pursue the phase one dose escalation combination study of VoverDuo with lorigerlamab in patients with advanced solid tumors, including renal cell carcinoma, pancreatic cancer, ovarian cancer, hepatocellular carcinoma, MCRPC, and melanoma.
Speaker 4: Next up, Mgdo24 is our next generation bispecific CD123 by CD3 DART molecule that incorporates a CD3 component designed to minimize cytokine release syndrome while maintaining anti-tumor cytolytic activity.
Speaker 4: and permitting intermittent dosing through a longer half-life.
Speaker 4: Our phase one dose escalation study of MGD-024 is ongoing in patients with CD123 positive relapse or refractory hematologic malignancies, including acute myeloid leukemia and myelodysplastic syndrome. In the meantime, ourChr 11 Understanding System is available for about...)
As we previously announced in October 2022, we and Gilead entered into an exclusive option and collaboration agreement to develop MGDO24 and up to two additional bi-specific research programs. For more information, visit www.gilead.com
The agreement granted Gilead the option to license MGDO24 at predefined decision points during the Phase I study. Next, let me provide an update of our product candidates being developed by our collaboration partners for which we retain certain economic rights.
As Jim mentioned earlier, we are very pleased to see FDA's November approval of prevention bios, T-zeal, to delay the onset of stage 3 type 1 diabetes in adults and pediatric patients aged 8 years and older with stage 2 type 1 diabetes.
We view this as a very important advancement for individuals and their families dealing with the risks and consequences of type 1 diabetes.
And as we announced last week, as Jim mentioned earlier, we sold our interest in a specified portion of royalty payments based on future net sales of TZL to DRI for a pre-season of $100 million.
We have the opportunity to receive up to an additional $100 million from DRI upon pre-specified events.
In addition, you may recall that as part of our original sale of the Plz-a-Mat to prevention in 2018, we remain eligible to receive contingent payments from prevention, including $110 million upon the achievement of certain regulatory approval milestones.
and $225 million upon the achievement of certain sales milestones.
On Monday, Prevention Bio announced that it agreed to be purchased by Sanofi.
We have seen the public statements about this planned acquisition Driven by the potential of t-zeal We're excited for what may for this may mean for the future of t-zeal and most importantly for diabetes treatment in patients worldwide
As for macrogenics, we are in the process of evaluating the transaction in the context of our agreement with prevention. This is all we can say at this time.
To conclude, we believe that we have generated significant non-dilutive capital in the past eight months, re-prioritized our programs and reduced our corporate footprint and related costs, and we are in a terrific position to execute on our plan of developing and delivering life-changing medicines.
to cancer patients in 2023 and beyond. We would be now happy to open the call for questions.
Operator. Thank you. As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.
Our first question comes from Jonathan Chang with SVB Securities. You may proceed. If you continue, you can proceed, without yours.
Hi guys, thanks for taking my questions.
First, on the Tamarack study changes, can you provide some color on what you would hope to see in the Phase II study that would give you confidence in a subsequent Phase III study and what that Phase III study might look like?
Also, in terms of getting regulatory approval for the modified protocol, can you expand on your prepared remarks and give us a sense of where you are in that process and what still needs to be done? Thank you very much Jonathan. So as I pointed out earlier, given the
we could achieve this quicker by just having the two active treatment arms as opposed to an additional control arm. And as I have pointed out earlier, our goal was to reduce the dose that in particular would reduce the dose of the
Particular side effects, and we modeled this from the data we had to date from our expansion studies, particularly palmit plantar erythrodisesthesia, the hand-foot syndrome, where a number of the patients were getting grade 2 side effects, which included pain in their extremities.
and we found that patients would drop off because of the uncomfortable nature of this. So what we're looking for is a reduction in the severity of such a side effect profile and a reduction in the number of side effects. We believe based on the data we have reviewed from patients treated to date.
that achieving this and keeping these patients on longer may even lead to an even more effective response rate from those patients. So that's sort of what we're looking for from the results of this study.
And with regard to the FDA and going into phase three, me hopefully I'll be sharing with you all now.
We feel that we were planning in any case, knowing that the landscape was changing, that at the end of phase two, we were going to discuss with the FDA what the appropriate control group would be at that time to get the best.
benefit for patients going forward. So we feel that we will be in very good shape in terms of the number of sites that we hope to participate in the current study and then work with the regulatory agencies.
to implement that phase three study quickly.
If I can just sneak in one more, as there was a recent unsuccessful phase three study that tried to add on anti-PD1 to those attacks on MCRPC, what are the reasons for confidence in the phase two, Laura Gerlomatt, plus those attacks will study. Thank you. Yes, we're quite aware of the...
by the recent data we presented at ASCOGU, where both the response rates in terms of PSA 50 and 90 reductions, as well as objective response rates were far higher than that seen from any other...
Checkpoint study that we have that has been reported previously to date. As you well know, particularly the studies that came out recently on Checkmate 650,
showed a very poor response of the BNIVO on the order of a 9.3% overall response rate. And as we noted here on this call and at the meeting, we were seeing responses of 25.7%. And also as you pointed out in a similar setting keynote, 921.
with a higher avidity to bind to co-expressing cells within the tumor microenvironment, and with a opportunity to reduce side effects by the nature of having an IgG4 engineered into this molecule. So there is no Management of voters, Ve
killing or ADCC of Treg cells, we believe that these patients will be able to now be treated for much longer periods of time, taking advantages of both the effects of blocking PD-1 as well as CPLA4.
Thanks for taking my questions.
take my questions.
Thank you. Our next question comes from Yigal Nakumovitz with Citi. You may proceed. Hi.
Hi, Jane. This is Carly on Feryigal. Thanks so much for taking our questions. Just first to follow up on one of the prior questions, can you talk a bit more about what you're looking to see specifically on the efficacy side in Tamarack?
next year to support moving into a potential phase three in this setting? Yeah, thanks Carly for the question. So, you know, we have very good historical data in that line of therapy for patients treated with docetaxel as a control arm.
as the study that Jonathan was alluding to, a Kino 921, and an RPFS of 8.3 months, presides phase 3B, also treated with docetaxel.
was an 8.3 months RPFS. And as you may recall, Triton-3 in that control arm of docetaxel was also 8.3. It's sort of remarkable that they were identical to the submonth in that study..
And then if you also look at the overall median overall survival, it's approximately 19 months. So obviously we would like to see some significant increase above those numbers. And clearly we'll also get a sense from the the PSA 50s for example and preside
3B, the docetaxel arm of that study was PSA 50s of 24%. So we feel that given that we're seeing responses that are looking favorable just with the PD-1, CTLA-4 alone in a later line of therapy. Yeah, if you have said so,
that now adding this on to earlier stage patients, in addition to chemo, has a great opportunity mechanistically to enhance the responses, both for our PFS as well as OS.
Okay, great. That's helpful. I also didn't want to ask the...
similar question about her Vobra duo, just how you're thinking about the efficacy bar in the phase 2 cohort.
Well, as you know, in looking at later lines of therapy, typical control arms run about three to four months. We'll have to see where populations now with treating with a plasicotaxial land.
It was a little disappointing. I don't know if you had a chance, for instance, looking at the Checkmate 650 study as compared to the result of the CARDS study in kabazitaxel. I mean for this purpose until, for example, anything that might be? m
They had a nice control arm of kabazzi taxol in an obviously study that was just done with a response rate of about 12%. So it's much lower than the historical data from the CARDS study. So we'll have to see where we go. So clearly... Hey!!!
The targets of getting a RPFS close to eight months would be something that we would like to aspire to, but we'll have to see as the data evolves.
Thank you. Our next question comes from et cetera with BMO Capital Markets you may proceed. »
Great. Thanks for taking the question. Another question here on the Volvoduo, just given the commentary around sort of radiopharmaceuticals and MCRPC, you know, just your thoughts around a phase three monotherapy, Pivotal for Volvoduo versus MCRPC.
know, a combination like, you know, like the Lord Jullimap combination that you're exploring now. And then again, for Lord Jullimap, maybe you've fought around the Phase II studies that you could potentially initiate beyond the Delta Tapsal combo trial you plan to start in the second half of 2023.
we'll have to see where we're going. As I've already noted, what a single agent targeting would look for both extending the RPFS as well as the OS with the RPFS running, as I said, on the current studies, the vision study for instance, card, etc.
of approximately eight months and then obviously OS in greater than a year was about 14 months on depending on the study.
As you know, we're exploring the potential of Vober, Duo, and Laurie in combination in multiple tumor types, but it includes a population of patients with prostate cancer. We haven't identified the...
dose yet, that would be one we would like to take forward and certainly we would look to do expansion studies once and if we can establish a safe and active drug. Given where we are on the start of the Tamarack study now
and this combination and with the idea that we would have the data from Tamarack hopefully by the second half of 24, we may be in a good position to have different options if, in fact, we have identified an appropriate Vobra, Duo, and Lori combo dose going forward. So one could imagine.
additional arms to that study to be included, to ask that question, would a combination be better than a single agent in such a setting? So we'll have to see, time will tell. We have more work to do on that.
With regard to additional studies for Laura Drillamab, beyond the phase two, we just talked about in combination with dosy taxil. We think that there are different opportunities given the profile of the drug, either late to very early stages.
of prostate cancer. So for instance, one might consider the hormone responsive setting moving further up the line. We want to get obviously this study going first in the post-NHT setting.
And then we'll consider other opportunities in other lines of therapy going forward for Laura, Joe. Great Thank you. Congrats on the progress. Thank you.
consider other opportunities in other lines of therapy going forward for lawyer general. Great. Thank you. Congrats on the progress. Thank you. Thank you.
Our next question comes from David Dye with SMBC. You may proceed. Great, thanks for taking my questions. So, just one question on the Volbra and LORi combo trial. We did see quite a bit of grade 3 treatment related toxicities, around 35% as you mentioned.
Scott, so how should we think about the safety profile of the combined trial? What are some additional kind of adjustments on dosing you're thinking about to reduce the safety while continuing efficacy?
Yeah, so just to put this in context so that people are looking at apples to apples comparison, particularly with what you're commenting on the lower journal and that in terms of discontinuations and the AEs. Remember that
Combinations, for instance, of ipilimumab and nivolumab will require a reduction to one mg per kg of ipilimumab to get a tolerable combination going forward, and it's limited.
to four doses of that combination with then continued use of Nevolumab in various clinical settings.
So I should point out that the patients being treated with loridolumab that had objective responses With the PSA 90s I described to you have now been on the drug for over a year And they're getting on a Q3 weekly basis. So
it was not surprising that over time you're going to accumulate more side effects in aggregate in such a population and discontinuation rates, which are often much later than that would have occurred with, say, Iponivo. In fact, if you look at the checkmate that I have on my shelf, I got Rowling.
650 study if you looked at the arm that got in the volumab 1 and it be 330
The plan was to treat those patients with four doses on a Q6 basis of IPI, and the mean number of doses in that arm of the study was two. So again, tolerability was an issue there. Now with regard to combining going forward,
That's why we're doing the study right now is to see if you know if new side effects occur. If you look at the actual side effect profile of the individual molecules there's very little overlap in terms of the type of side effects that we're seeing by treatment of patients individually.
but we'll have to see as we go forward with regard to how we envision optimizing the dosing. Well, quite often because the mechanisms by which these drugs work are quite different.
It may be that lower doses may be quite sufficient in combination to achieve the response rates that we hope to see that are better than the individual drugs alone.
That's very helpful. Thank you.
And that's very helpful. Thank you. Thank you.
Our next question comes from John Miller with Evercore ISI. You may proceed. Hey guys, thanks for taking my question and congrats on all the recent progress. The prevention deal included warrants. I know you're not talking much about the Sanofi acquisition, but did you exercise those warrants and own prevention stock? I also noticed there's a change of control payment in the Sanofi acquisition.
too and how should we think about moving into potentially pivotal cohorts there? So let me answer that first and then I'll let Jim address the TZL story.
Actually, as we noted early in the call, we already have four countries, and we expect many of these other countries to come on. The sites that are already opened in Tamarack will continue to enroll patients, and any patients that are on control arms will be just switched.
to an active arm. So really there is no delay. In fact, we believe that by going this route and now adding on additional sites with this amendment,
we should be able to enroll this study as well as getting readout much faster than we would have done with the controlled phase two. Right now we're still, given that a lot of sites have to come on, we still need to get regulatory approval in some countries which.
We expect to curl imminently. We think that we're still targeting in the second half of 24 to have clinical readouts here. And, John , thanks for the question about prevention. With regard to the warrants, we disclosed that we exercised those back in 2019, and we sold those shares.
expected to occur imminently. We think that we're still targeting in the second half of 24 to have clinical readouts here. And, John , thanks for the question about prevention. With regard to the warrants, we disclosed that we exercised those back in 2019, and we sold those shares. I think we averaged about $12 a share.
Which at the time seemed quite good. And then with regard to the other question, the Sanity transaction, obviously we have the ability to receive commercial regulatory milestones from prevention. As well as certain additional consideration.
for rights that they grant with respect to the product. And we are evaluating, we expect to continue to evaluate the details of the pending Sanofi probation transactions in that very context.
Scott, I was trying to ask about the phase 3 portion of Tamarack round phase 2. I understand you are trying to help enrollment along for phase 2. Does dropping the phase 3 portion now delay your ability to get that going later?
I don't think so. I mean, we'll have to see as we go forward and anticipate. Remember, we'll get real-time data on the phase two study. So we have the ability to prep what we would see in terms of the phase three. And the assumption is that the majority of sites that we would have in the phase two would continue on.
Phase 3. So we and in any case we would have had to Discuss with the FDA what the appropriate control was at that time Given the changing landscape. So ultimately, I think we will have enough lead time
to not lose the ability to implement the Phase 3 in a similar timeframe.
lose the ability to implement the Phase 3 in a similar time frame. All right, thanks so much.
Thank you. Thank you. Our next question comes from Steve and Willie with FIFL. You may proceed. Yeah, thanks for taking the question. So, maybe just a point of clarification on the proposed Phase 2 Lord Jurele Map trial. So, can...
Can these patients have seen docetaxel in the castration sensitive setting, or is this a truly chemo-naive patient population? We expect that most of the patients will... This will be in the castration-resistant population. We expect that.
most of the patients will be there. They may have seen, I believe,
some chemo in the castration sensitive population, but expect to be a much smaller portion in that population.
Okay and I think you touched upon it before but I guess what's the rationale for initiating this?
this specific combination trial versus just waiting for combo data with Vobra Duo and then potentially resourcing that study instead.
Well, I think first of all, we're going to get our experience of combining this with a chemotherapy and a different chemotherapy. And as I pointed out earlier, Steve, that we see the prospects of this drug being used in very early lines as well as late lines of therapy. So I think this is our first foray into that.
There's no reason as we're getting this data, if we identify a combo dose that looks good and can be moved forward, that independently we can develop another trial using that combo. So they're not mutually exclusive.
no reason as we're getting this data, if we identify a combo dose that looks good and can be moved forward, that independently we can develop another trial using that combo. So they're not mutually exclusive. Okay, fair enough. And then.
I guess one of the assets to which you guys have some stake in and I don't think was talked about earlier is the immunogen ADC IMGC936 I think. So I think they've said that they've initiated dose expansion now in long and triple negative. I think they're going to have some data to show.
No, the way the deal is structured is it's a 50-50. It's a joint decision on both next steps design, the financing of those studies.
We actually have a very good relationship in terms of who would conduct the studies. And in the end, either of us could move forward there. And similarly, either of us could obviously opt out and not choose to fund the study.
I think that we still need some more time to look at the populations that Imidigen has disclosed of adding additional patients. I think on one of their last calls they said that they are planning to add additional patients with lung cancer. I think that we still need some more time to look at the populations that Imidigen has
in the study and that would extend that further but would provide an update in the meantime. I think patients are being continuing to be followed at this point. So really nothing more to say right now. I think that finding the appropriate dose of COVID-19.
for treatment is the critical point here for continuing the study in whatever tumor type we both decide to move forward with. Thank you. Our next question comes from Boris Pekar with Callan. You may proceed. You may respond with a parenting question or two if you have a short time period.
Great. I have two questions, one on loradrelimab and the other one on Volvogrel. So, for loradrelimab, can you discuss how you decided on the dose for the phase two trial and why you don't think you need to do that?
to have several doses like you were doing with Vobra. And for Vobra, how do you think Plovicta will impact your ultimate phase 3 trial design in Tamarack study, of course? Yeah, excellent questions, Boris. So, you know, we, as you know, dosed up
to 10 mix per gig in a dose escalation study did not hit DLT. We did see increased immune-related AEs at 10, so decided to continue at 6 mix per gig. As you know, on a Q3 weekly basis, as you know, we...
presented the safety data of 127 patients at ASCO GU, which included the patients with prostate cancer as well as other tumor types in that safety analysis. We believe that six mix per gig.
is an active and safe dose. But the beauty of this molecule, if you recall the data from the dose escalation study, we had 100% full occupancy of PD-1-positive cells at one mg per kg and higher. We were seeing objective responses of three mg per kg.
and higher, we were seeing evidence of biomarker activity based on Ki67 and CD4s and CD8s and Icosop regulation on CD4s at those lower doses as well as the 103 mix per Kg. So we have a nice big window here with regard to picking the dose.
So I would assume that we wanted to start with one dose, get a response there, have the opportunity to modify if something comes up. But ultimately we will likely do a small study comparing.
6 mgs to a lower dose at some future time as we start accumulating the data from the ongoing LORI study. Now with regard to a phase 3 study for BoverDuo, we are now continuing on the
and the impact of Flavictal, we'll just have to see. Clearly, there's been challenges with regard to getting enough drugs into the market. We assume Novartis will improve that over the course of this year and next year. Let's find out who a supply chain with where who the flavictal supply may have the lead,
But still, as you know, this is being used mostly at very large academic centers, and the community physician has less opportunity to treat their patients with Povitos. So we'll have to see where things go with regard to...
the importance of predictive treatment in the design of the subsequent study.
Great, thanks for taking my questions. Thank you. And as a reminder, to ask a question, you will need to press star 1-1 on your telephone. Our next question comes from Charles Zhu with Guggenheim. You may proceed. Hi, this is Edward On for Charles Zhu. Hi, this is Edward On for Charles Zhu.
Thanks for congratulations on all the progress. My first question was on the lorigilumab MGC018 combination study. I'm just curious if you can give any color on how the dose escalation is going and then any further color on the future data update and what investors could expect there.
Yeah, thanks Edward. As I said before, we're still looking for the right dose combination there that provides both the activity and safety. As we had noted before, we had fixed the dose.
of the lorry and start out with a very low dose of OBERDUO, but have nothing more to say with regard to identifying the final dose. We're still treating patients and looking to see what the appropriate combination would be
With regard to the timing of this, again, we would like to pick the dose and then move into some expansion cohorts. And it depends on how quickly we get to select that dose and move into those expansions. There's an outside shot that may be later this year, more likely in 24.
We'll have data to discuss. Great, thanks. And maybe just as a follow-up question on you've got, so you've got Lori and MgcoA team and also the combination. I'm just curious how you're thinking of positioning, you know, the doublet or the individual monotherapies and prostate longer term.
Well, I think it all depends on what both the activity and safety profile is. As I pointed out, we want to improve the VOBR duo at this point. We see this in the context of treating prostate cancer.
to probably more the later line therapy. We look at the opportunity for LORRI pretty much across the board from early disease to late disease. But I should point out and one should not forget the fact that the reason why we move forward with molecules targeting B7H3 and obviously checkpoint.
Even the current therapies are not curing patients number one, particularly in later line. And there is no checkpoint that has been approved in prostate cancer. But ultimately we look forward to using both these agents, either alone in combination and many other solitumers as well. And again, depending on...
how much capital we have available, partnerships going forward, etc., will determine how quickly we're able to expand the use of both drugs.
we have available, partnerships going forward, et cetera, will determine how quickly we're able to expand the use of both drugs.
Thank you. Our next question comes from Sylvan Twerken with JMP Securities. You may proceed. Thank you for taking my question and congrats on the progress with the quarter. On World War II, it seems like enrollment in the trial, phase two, three trial was going slow. So you remove that.
control arm, what gives you confidence that enrollment will speed up because your active arm, often technically unproven, therapy is still competing now with these radiotherapies that are new and that people seem to like? Have you noticed anything in terms of uptake there with the removal of the control arm?
the enrollment is going to go with the removal of the control arm. The expectation based on CRO feedback and as well as investigators has been very positive. What we had seen is that patients did not want to...
ultimately go on to a study at this point with a controlled population. That was the biggest obstacle that we were facing as we started this study. As you know, there was a significant editorial in JCO talking about ARAT-based research.
second Iraq control arms and studies that came out just as we were starting this study and so there is Much more reluctance from the Europeans with regard to using that so given all those conditions We didn't wait and we said alright. We're going to make these changes We did it rapidly the team did a fantastic job
of implementing these changes and working with the regulatory agencies. And so I think we're in a good position based on the feedback we've heard from investigators around the world. In fact, I could tell you is that
When we were at ASCO GU, we were just about to make these changes and had side discussions and investigators who were on the trial and they were very enthusiastic about these changes. So we'll have to wait and see.
Great, thank you. And could you, with respect to Tissellate, could you help me understand some of the wording? So it says that the company retains the right to receive 50% share of royalties on global net sales above a certain annual threshold. Is that still something that could come your way or is that also now going to the way of DRI post the deal, if that deal closes? MSAS, this country will rely on a //
No, no, no. That was the part of the agreement we made with DRI. This was what I call the kicker. In addition to the $250 million potential milestone payments, which we described today.
If sales reach a particular total on a given year, everything above will be shared 50-50 between DRI and macro genics on the net sales above that level. So this, given...
What Sanofi just paid for this drug, I presume they have a lot of confidence of being able to achieve significant sales of this drug and certainly this particular sales target is
could be could be achieved. You sure you did not fill all of the royalties, so potentially. No, exactly. That's the point is we sold a significant royalties, but above a certain level, we will participate in a significant single-digit royalty there. And for that, we fully retain the $335 million in miles.
DRI might owe us, given Santa Fe's payment here, we believe that these are potentially achievable milestones, all of them, and that total is by itself without this kicker which I just described to you.
is a total of $435 million. Great. Thank you so much. Thank you. This concludes the Q&A session. I'd now like to turn the call back over to Dr. Scott Koenig for any closing remarks.
I want to thank everybody for participating in the call today. And as you heard from our excitement about the progress we've made on many of these studies, we look forward to updating you in the very near future. Hope everyone has a good evening.
Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
The conference will begin shortly. To raise and lower your hand during Q&A you can dial star 11.
I have.
Good afternoon. We will begin the macro genics 2022 fourth quarter corporate progress and financial results conference call in just a moment. All participants are in a listen only mode at the moment and we will conduct a question and answer session at the conclusion of the call. At this point, I will turn the call over to Jim Carol's senior vice president, chief financial officer macro genics.
Thank you, operator. Good afternoon and welcome to macro JAMIS conference call to discuss our fourth quarter 2022 financial and operational results. For anyone who has not had the chance to review these results, we should press release this afternoon outlining today's announcements.
which is available under the investors tab on our website at macrogenics.com. You may also listen to this conference call via webcast on our website where it will be archived for 30 days beginning approximately two hours after the call is completed. I would like to alert listeners that today's discussion will include statements about the company's future expectations, plans, and prospects that constitute forward-looking statements for purposes of the safe harbor provision.
under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these four looking statements as a result of various important factors, including those discussed in the Risk Factors section of our Annual Correlate and Current Reports filed with the SEC.
In addition, any four looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date.