Q3 2023 MacroGenics Inc Earnings Call
Okay.
Good afternoon, we will begin the Macrogenics 2023 third quarter corporate progress and financial results conference call in just a moment.
All participants are in a listen only mode. 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 Carroll Senior Vice President Chief Financial Officer of Macrogenics.
Thank you operator, good afternoon, and welcome to Macrogenics conference call to discuss our third quarter 2023 financial and operational results.
And who has not had a chance to review. These results we issued a press release this afternoon outlining todays announcement.
Which is available under the investors tab on our website at Macrogenics Dot Com you May also listen this conference call via webcast on our website, where it will be archived for 30 days beginning approximately two hours after the call.
Yes.
I would like to alert listeners.
This 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 1985.
Actual results may differ materially from those indicated by these forward looking statements as a result of various important factors, including those discussed in the risk factors sections of our annual quarterly and current reports filed with the SEC.
In addition, any forward looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date.
While we may elect to update these forward looking statements at some point in the future. We specifically disclaim any obligation to do so even if our views change except to the extent required by applicable law and now I'd like to turn the call over to Dr. Scott Koenig, President and CEO of Macrogenics.
Thank you Jim I'd like to welcome everyone participating via conference call and webcast today.
This afternoon, I will provide key updates on our clinical programs, 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 Macrogenics reported financial results for the quarter ended September 32023, which highlight our financial position.
As described in our release this afternoon Macrogenics total revenue was $10 4 million for the quarter ended September 32023, compared to total revenue of $41 7 million for the quarter ended September 32022, a.
The decrease reflects the recognition of $30 million in revenue under the insight license agreement. During the three months ended September 32022 revenue for the quarter ended September 32023 included recognition of $4 5 million in contract manufacturing revenue and margin and net sales of $4 $7 million.
Impaired to $4 4 million for the quarter ended September 32022.
Our research and development expenses were $30 1 million for the quarter ended September 32023, compared to $48 2 million for the quarter ended September 32022.
The decrease was primarily related to decreased costs related to discontinued studies, partially offset by increased expenses related to preclinical antibody drug conjugate or ADC molecules.
And increased clinical expenses related to larger than that.
Our selling general and administrative expenses were $12 4 million for the quarter ended September 32023, compared to $15 4 million for the quarter ended September 32022, the decrease was primarily related to decreased selling costs or our gender during.
During the quarter ended September 32023, Macrogenics received a $50 million milestone payment from Sanofi related to the achievement of the primary endpoint in a T Z all the clinical study the accounting treatment for this milestone is consistent with that for the $100 million proceeds received from the sale of our single digit royalty interest on.
Global net sales of <unk> health care acquisitions LP in March of this year.
Accordingly, 50 million was included.
In other income as a gain on royalty monetization arrangement for the quarter ended September 32023 or.
Our net income was $17 6 million for the quarter ended September 32023, compared to a net loss of $24 8 million for the quarter ended September 32022.
Our cash cash equivalents in marketable securities balance as of September 32023, with $256 4 million.
Compared to $154 3 million as of December 31, 2022 or.
Our cash balance as of September 32023 did not include a $15 7 million dollar milestone from Gilead subsequently received.
Finally in terms of our cash runway, we anticipate that our cash cash equivalents in marketable securities balance of $256 4 million as of September 32023 to $15 7 million a milestone subsequently received in addition to projected and anticipated future pay.
Our partners in product revenues should extend our cash runway into 2026.
Our anticipated funding requirements reflect expected expenditures related to the phase II <unk> study.
Phase III Lorikeet study of larger la map in metastatic castration resistant prostate cancer as well as our other ongoing clinical and preclinical studies and now I'll turn the call back to Scott.
Thank you Jim we continue to believe our proprietary pipeline of product candidates has great promise and I will walk you through each of our key programs momentarily as well as tell you about our plans for upcoming clinical programs.
Before I do that let me quickly remind you that since mid 2022 through our business development efforts as well as milestone achievements, we have received $335 million of non dilutive capital.
This includes $215 million from prevention <unk>, Santa Fe in connection with T. C L.
$75 million from Gilead and $45 million from insight in connection with diners.
Well were minimum Abdul Karmazin or overdue.
Our ADC designed to deliver a DNA alkylating do akamai in cytotoxic payload the tumors expressing <unk> <unk>.
The 780 <unk> III is a member of the <unk> family of molecules involved in immune regulation.
Overdue always designed to take advantage of this antigens broad expression across multiple solid tumor types.
We began enrolling the tamarac phase II study of overdue.
Under a modified study protocol during the second quarter.
I am thrilled to tell you that we recently completed enrollment of this study ahead of schedule.
As a reminder, tamarac is being conducted in patients with metastatic castration resistant prostate cancer or CRP C, who were previously treated with one prior androgen receptor axis targeted therapy.
Participants may receive up to one prior taxane containing regimen, but no other chemotherapy agents.
This study is being conducted to evaluate <unk> in patients across two experimental arms of either <unk> or $2 seven mix per kg every four weeks.
We anticipate having data from this study to share with you in the first half of 2024.
Next I'll update you on large, Maryland that are Bispecific tetravalent, PD, one by <unk> Dart molecule.
We design, Laura Geralyn, Matt to have preferential blockade on dual PD, one <unk> four expressing cells such as tumor infiltrating lymphocytes hotels, which are most abundant in the tumor microenvironment.
We recently began enrolling lorikeet study a randomized phase II clinical trial of <unk> in combination with Docetaxel versus Docetaxel alone in second line chemotherapy naive and CRP C patients.
A total of 150 patients are planned to be treated in the two to one randomized study.
The current study design includes the primary study endpoint radiographic progression free survival or PFS.
Given that we just commenced enrollment will need more time to estimate when we might complete enrollment and have data to share from this study.
In addition, we continue to enroll patients in the phase <unk> dose escalation study of overdue or in combination with large allomap in patients with advanced solid tumors, including renal cell carcinoma pancreatic cancer ovarian cancer.
Cellular carcinoma.
M CRP C and melanoma.
We anticipate commencing the dose expansion portion of the study in 2024.
Next up <unk> 24 is our next generation bi specific CD 123 by CD three dart molecule that incorporates a CD three component designed to minimize cytokine release syndrome, while maintaining antitumor cytotoxic activity and permitting intermittent dosing.
So a longer half lives.
Our phase one dose escalation study of <unk> 24 is ongoing in patients with CD 123, positive relapsed or refractory hematologic malignancies, including acute myeloid leukemia and Myelodysplastic syndrome.
Recall that Gilead has the option to license <unk> 24, a predefined decision points during the phase one study.
Also as part of our collaboration with Gilead and as Jim already mentioned, we received a $15 7 million dollar milestone from Gilead related to their nomination of the first of two potential research programs that leverage our dart and trident platforms or by specific antibodies.
This nomination grants Gilead, an exclusive option.
Achievement of a predefined preclinical milestone.
License worldwide rights to this first research program.
Macrogenics will conduct the work related to this program on behalf of and funded by Gilead.
Next <unk>.
<unk> is an FC optimized monoclonal antibody that targets <unk> III.
Recently published data from our phase II investigator sponsored study of <unk> in men with prostate cancer prompted our academic collaborators to initiate an investigator sponsored randomized translational intense prostate cancer clinical trial.
The heat study is expected to commence enrollment in early 2024, and we will evaluate the activity of neo adjuvant and novelties on that given prior to radical prostatectomy in men with high risk localized prostate cancer.
Eligible patients will undergo a pretreatment prostate biopsy and conventional imaging TT inbound scan as well as TSMC pet and optional prostate MRI as per institutional preferences.
Finally on our second quarter earnings call I described our ongoing efforts in developing preclinical ADC molecules utilizing linker payload technologies, we license from Synaptics.
I am very pleased to tell you. We recently submitted an investigational new drug or IND application to the U S. FDA for the first of these Adcs Mg C O 2006.
This molecule utilizes a topoisomerase inhibitor based cytotoxic mechanism directed against an undisclosed solid tumor targets.
In preclinical studies the activity of this linker toxin combination compared very favorably with that of other topoisomerase inhibitor based ADC technology.
We look forward to sharing preclinical data with you at a future scientific conference and telling you more about this molecule in early 2024.
In addition to <unk> 26, we are readying, a second topoisomerase inhibitor based ADC for which we currently expect to submit an IND in late 2024.
And behind these two adcs, we're exploring additional molecules for potential future R&D submission.
Stay tuned.
To conclude we believe we have the technical development and clinical expertise as well as financial resources to support our vision of developing and delivering life changing medicines to cancer patients.
We would now be happy to open the call for questions.
Operator.
Yes.
Thank you ladies and gentlemen, if you have a question or a comment at this time. Please press star one on your telephone. If your question has been answered or you wish to move yourself from the queue. Please press star one again, we will pause for a moment, while we get our Q&A queue in order one robin.
Our first question comes from Charles <unk> with Guggenheim Securities. Your line is open.
Hey, good evening, guys and thanks for taking the question and congrats on all the progress.
Perhaps my first one here.
Are you guys thinking about potential longer term registrational development for Vocera dual within prostate cancer, particularly with <unk>.
Not only with the potential setting, but also with the potential of choice or choices.
Control arm just given the current shifting landscape. Thank you.
Thanks for the question Charles.
So as you know there's been some recent updates at the ESMO meeting with regard to PSA may four.
And clearly we would like to see the results of the <unk> study, which as we described today will occur earlier than.
When we originally announced.
We feel that there is great opportunity for treatment of patients in later lines of therapy, and we are evaluating now the potential options for a control population.
These may include multiple choices by the investigator, but at this point.
Until we finish completion of the current Tamarac study.
Further discussions with the regulatory agencies.
We will not provide guidance.
Guidance with regard to the specific control group, but it is clear from our interaction with key opinion leaders that this is a very needed.
Treatment.
Advance.
For later line patients, giving them greater options and that are currently offered to them.
Okay.
Got it great. Thanks for that maybe one quick follow up on deals dobro dual with Laura drilling that combination regarding the potential expansion cohorts starting from next year, which tumor types might you prioritize ties and why would you presumably also need to demonstrate contribution of components for this and if so.
What's your current single agent data, so suffice or would you need to demonstrate this data for each given individual histology.
Well as you know Charles Thanks for that question, we have now a significant data of individuals.
Treatment arms for four <unk> duo and where Gerald <unk> and prostate cancer for example.
So again this would be a discussion with regard to the design of such study if.
If we were moving forward with prostate it is likely that our prostate would be one of the expansion arms. Once we have established the final combination dosing for the individual components.
As we have said previously it is likely we will add one to two other tumor types. In addition to prostate cancer, but at this time, we're not ready to describe the ones we have selected.
Got it great. Thanks for taking the questions.
One moment for our next question.
Our next question comes from Kevin <unk> with <unk>. Your line is open.
Okay.
Hey, good evening congrats on the progress.
So I guess my question is similar to the previous question that was asked <unk> Brown.
Just tell us how you are thinking about development after readouts from Tamarac trial in the first half of next year. Do you think you will have sufficient efficacy data to directly move into a pivotal study or you would be running another randomized trial.
So thanks for that question correctly.
The purpose of the current study was two <unk>.
Fine tune the dosing from what we had previously reported on the expansion dosing of three mix per kg.
Obviously the data is still early.
In the.
The feedback of the current trial, but I am very pleased on how this trial. It has both enrolled and is performing.
<unk>, we feel that we will be in a great position to select the dose for a control study a phase III study.
One of those two doses.
But at this point.
As I described previously.
Position to describe the control arm.
I imagine it will look similar to what we had previously described in the phase III three original.
<unk> design.
Last year.
Got it that's helpful and for larger little map and Guildford textile combination trials for chemo naive patients how are you thinking about the competition from Radiopharmaceuticals.
Are you.
Allowing enrollment of patients who have gone through these trial like the SME or flash or eclipse regimen, and Ken bone marrow and kidney toxicity from these brands provide a big market opportunity and maybe a follow up on that do you think the prior use of <unk> if approved based on contact OTI trial could impact larger.
Efficacy.
So lots of questions there.
The opportunities for our patients who had been exposed to radio pharm.
As possible in this study.
The large element Docetaxel as you know this is a.
Randomized study two to one 100 of the combo.
And 50 of the controlled dose Docetaxel, we do believe that there will be great opportunities for patients.
Expands the opportunity here despite the fact.
Encouraging data.
For <unk>.
Predict though.
In the earlier line therapy, clearly we are not.
Curing these patients.
Even from that treatment.
And as you know there was some question with regard to the overall survival benefit because by crossover protector and certainly there will be.
Challenges for patients.
Who have.
History of bone marrow toxicities from the radiopharmaceutical oil from other agents going forward.
Clearly.
At this point.
We're still in the early phases of enrolling the study and we'll have more to speak about this.
2024.
I didn't catch your last question.
Could you repeat that one.
Yes.
You'd think that it.
It get the proceeds on the contact Alpha trial do you think it could impact larger efficacy.
I don't think that thats going to be a.
Okay.
One moment.
That.
The activity of larger lab based on.
The data we report today should have a superior outcome.
In various prostate settings.
Okay.
One moment for our next question.
Perfect.
Our next question comes from Esther drought with BMO capital markets. Your line is open.
Great. Thanks for taking the question just a couple of quick ones. So the first one just was curious Scott how much overlap trial site overlap you have between tamarac into the <unk> trial and could we see maybe a similar sort of trajectory in terms of enrollment for that study.
Sites are sort of similar between those two studies and then for the for the Cobra Laurie duo combination just curious as to sort of maybe where you are currently with the dose.
With the dose escalation and sort of the drivers here for the expansion start in 2024.
Okay.
Cut out let me ask answer the first question, which was on the trial overlap there is some.
Sites that are enrolling in both studies, but largely separate sites.
But I think we're in very good shape with the current sites that are.
Setup for Laura key to have a.
Good enrollment.
In late this year and into 'twenty, four but clearly still.
Okay.
Okay.
Yes.
Are you still there Scott.
Yes Im here.
Still there.
Scott you faded out.
Would you mind.
Answering that again.
Okay I didn't hear the second question.
With rig.
Okay for the trial.
Can I ask the second question or sorry.
Sorry, yes. So just was curious sort of where you are with sort of the.
The <unk>, Laurie dose escalation and sort of sort of the pushes and pulls here for the start of the expansion trial in 2024.
One moment please standby.
Are you back Scott.
Ladies and gentlemen, please standby.
Okay.
Hello.
<unk>, we can hear you.
Okay, So I switched I switched computers.
Okay.
Yes, we can hear you.
Yes, we can hear you okay.
Should I should ask the question again I am not sure. If you heard me that please no it didn't have it here.
No just curious to see sort of where you were with the dose escalation of the lorry vulgar a combination.
Okay.
What sort of triggers here, though the expansion start in 2024. If you can just maybe provide a little bit more color on where you are with the escalation.
Yes.
We're pretty close to selecting the doses now we're fine tuning the individual doses that we expect that.
To occur by the end of the year and then would move into the expansion in early 'twenty four.
Got it thank you.
One moment for our next question.
Our next question comes from Jon Miller with Evercore. Your line is open.
Hey, guys. Thanks, so much for taking my question and congrats on all the progress I guess one on lorikeet.
This is a phase <unk> phase two here, but you were previously guiding to a phase two expansion. After the ongoing phase one are we still expecting to see a meaningful <unk> dataset here in an expansion setting and into first half 'twenty four or is this taking the place of that and then.
Secondly.
On the <unk> four program, our Gilead opt ins I mean, I know there'd unspecified points in phase one but are we going to see public facing data from that phase one before gilead has opt in rights or is it possible that they have opt in rights before even phase one data is available.
No.
So let me start with the second one day, they can opt in anytime during phase one.
They will control the data with regard to public.
Presentation.
But they can they can they have to do it before the data phase one is complete.
With regard to the law the lorikeet any bench.
<unk> study.
That study is complete.
But for the fact that.
Several of the patients three of the patients.
Still on Lora Gerald I Mab.
This is now coming on almost two years.
From enrollment in that study.
We are encouraged by the activity and the ability to.
Retreat patients over long periods of time.
With regard deeply.
<unk> phase two.
The plan is to complete that.
That study make decision.
Not only for the chemo naive population, but also look at the opportunity of Lora keyed in other prostate setting.
He will describe.
His opportunities too.
Test this in other tumor settings and.
Would you provide some update very soon with regard to additional indications that we would like to pursue.
With quarter Joe.
Great. Thanks for all the color there Scott, but maybe I missed it or are we still expecting a lorry expansion update in actual dataset.
Coming first half next year.
Well.
From the prostate study.
We presented that as you know last February there is for that particular cohort.
Just the longevity.
With regard to that non prostate indications on what we have said is that once we have.
Hum.
Sided to move forward with other indications they may provide opportunities to present the data.
From which basically.
Our decision to move forward.
Okay. Thanks, so much and maybe one on the deeper pipeline. Then you mentioned a total payload on 026, but you previously talked about multiple payloads and lingers. So how diverse. It is next couple of molecules that you mentioned coming just behind <unk> are they also representative of that multiple payloads multiple lingers.
Grams that you've got.
Sure.
And well continue to look at the options it will be in terms of the linker payload.
And because the way the Senate.
Uh huh.
Bio space, there and toxin is set up we can select one of several <unk> Ed.
This first one is the topoisomerase inhibitor. The second one will be a topoisomerase inhibitor, we're evaluating not only a togo I summarized inhibitor, but other toxin associated with other targets going forward.
Are not in a position yet to.
Discuss.
Either the targets or the particular payload that we'll use for the number three for RMB on.
Yes.
Thanks, so much guys.
One moment for our next question.
Our next question comes from Peter Lawson with Barclays. Your line is open.
Great. Thanks, Scott Thanks for taking the questions.
<unk> tamarac.
What did that enroll faster than expected.
Much data should we expect to see in the first half next year.
Well I have to say that.
Yeah.
Yes.
Okay.
Perfect.
You're in the <unk>.
U S.
And in Asia.
We saw.
So a great enthusiasm from the investigators.
The patients on the study.
I can't give you a little bit more color than then they have to have unacceptable in the opportunity here with bulger duo and helping their patients and the rationale why we're doing that.
Women resonated.
Resonated very well with the investigators as well as the patients.
What the.
The study was presented as.
A 100 patient 50 in each arm, we've actually exceeded that.
It has been over Paddy.
So we expect a fairly sizable amount of data to come out in 2020 four.
Okay, and then on Adam nine any any details for that readout was nudged Bank forever.
Second half of this year to 24.
This study is completing its being completed out.
Finalizing.
And we'll as immunogenic said they will.
A report out in the in the beginning part of 'twenty four.
As I've indicated to you one of the challenges has been always with identifying the appropriate dose moving forward.
They are finishing out the patients that are on the non small cell lung cohort currently and we'll report on that in the first part of the year and with regard to next steps for that program.
Great. Okay. Thank you so much.
One moment for our next question.
Our next question comes from Silvan <unk> with JMP Securities. Your line is open.
Hi, good evening, congrats on the update and thanks for taking my question.
Maybe a more big picture question can you comment maybe on some key takeaways from <unk> on <unk>, and our checkpoint that debt, but more and more presentation also what we can learn from the Daiichi Merck partnership.
And then a second question is what is the role in the heat study on E mail and other investigator related and it's earlier stage prostate cancer, but what is your role here and what's your involvement thank you.
So with regard to mobile.
First of all as you commented on the partnership now with Daiichi.
Convert which includes 70.
7300 molecule I happen to think that we're very encouraged that.
Italy.
The way that that partnership was constructed.
And the value that Merck placed on that relationship.
The 7300 being a very important part of the three.
Target deal at all only heightens I think.
The value we see for <unk>.
Robert duo and Alto <unk> III program with regard to the <unk>.
That daiichi presented in their poster session.
If you recall there was more in terms of.
Improved activity in the in the prostate cohort.
That they tested they were seeing.
About five months of our PFS first reported.
About a year of over the road.
And a 25%.
PSA 50 response, the latter of which is not any different than our previous full required.
So we feel again very good about.
Where <unk> sits right now.
Playing.
Additional data that will come out in note 24 on <unk>.
Tamarac study to be able to move forward.
Active drug.
With a proper dosing to mitigate some of the side effects we were seeing.
Hmm.
With regard.
To the heat study.
Again, we had always had a very close relationship with.
Yeah.
Got it.
And had.
I'll put it in.
When discussions with them.
On where the.
The value we see.
But tuesday Nab in settings like.
A neo adjuvant use of this drug and we are also.
Also looking at opportunities for novel, Susan that in other settings as well.
With regard to this being a collaborative study.
It is mostly in I S. T. So they have full control over the execution.
And.
Providing the data, but we have a constant conversations back and forth.
With regarding.
The opportunity for a notably in other B 783 molecules.
In the genome.
Thank you.
Next question.
Yeah.
Our next question comes from Jonathan Chang with Leerink Partners. Your line is open.
Hi, guys. This is the first one for Jonathan Thanks for taking our questions. So congrats on the tamarac enrollment I guess now that you sort of know what kind of patients you've enrolled what do you see as the right benchmarks for Roberto under setting.
Well I mean.
<unk> indicated that we were looking to.
Achieve.
A similar range of activity. Please.
He is probably where we were seeing about half the patients are achieving PSA <unk> I said, we would be looking for a 40% to 60% range on PSA 50 is obviously looking hopefully to some of these patients that Psa.
Nineties are with.
With regard to the.
The objective responses here.
Again, we have reported in what I just described for Daiichi with APA.
Approximately a quarter of those patients had objective responses without antibody.
Even higher levels.
And we think that there is an opportunity there given.
Halloween is improve these patients will stay on drug potentially longer.
When they don't have to come off before.
Side effects that are our.
Problematic for them.
With regard to our PFS. So again, we look to the the historical data on both predictor on capacity tax over the car.
Et cetera.
Again as I just reported to you with our PFS from the 72.
And the range of five months, we obviously would look looking hopefully for longer.
Our PFS.
And the six months or greater.
So I would say those are sort of.
General ranges nothing absolute here with.
With regard to decisions, it's the totality of the data which will decide.
Our next steps for this program.
Got it that's super helpful. Thank you and then recently there was data presented for a PMA ADC and also people on T cell engaged here like phase one data in prostate cancer, just curious your thoughts on the competitive landscape and how you see your assets positioned.
Well I think actually we're in a wonderful shape.
Fewer opportunities for patients for P. SMA.
<unk>.
As you look out.
The data that is.
And presented at various meetings the actual.
Patterns of PSA Mei.
And <unk> three are not identical they overlap.
Some tumors, but there are clearly select parts of the tumors, which will express one or the other as I pointed it out.
As patients progress to later line PSA may tends to drop significantly.
Our maintained so we think that it provides greater opportunity and choices for treating particularly.
Okay.
Patients, but most importantly, with regard to this particular program or having an ADC.
Four.
Versus an ADC.
For TSMC <unk> P M.
Somebody is going to be large eliminate limited to prostate cancer wherewithal broad expression of <unk> three across most solid tumors.
Thank them.
We are in great opportunity not only to.
Improved treatment for patients with prostate cancer, but to a whole host of other tumors with regard to other platform technologies again.
None of the data.
But <unk> in that regard.
But again, we'll have to see how that pans out.
Hum.
In most of these cases again.
The point I was making with regard to the Pea SMA specificity it will limit the pre cancer.
Okay.
Thank you.
One moment for our next question.
Our next question comes from <unk> <unk> with Citi. Your line is open.
Hi, guys. This is Patrick Mubarak Al <unk> al Thanks for taking my questions and congrats on all the progress just a couple of quick ones will there be an interim look and lorikeet and if so what might trigger that interim look also curious if you're able to share any color on powering assumptions and remind us what the trial was designed to show up in terms of separation PFS between the.
Arms.
So there is a plan.
Lorikeet, there will likely be a futility analysis, we have not provided the statistics around that.
All of that.
<unk> pointed out that.
Historical data in multiple control Choctaw trial named.
Limbo naive.
Population has shown our PFS is around eight months. So we're looking obviously to be able to beat.
Pete that that that milestone and that landmark.
Okay got it and then maybe one on video to for I guess can you remind us what you would view as an acceptable Crs profile for this program and then maybe on the efficacy side, what you would see as a worthwhile complete response rate and a phase one dose escalation set of Dominion and move on to our expansion in phase two.
Yes.
But as you know this is a study as we pointed out.
The graph with Geely.
Gilead, so I can't speak for them in terms of what they're a bar for this study.
We have described historically in late line patients.
With the.
South Florida math.
Precursor of a molecule.
Gil.
We were seeing at that time and the primary induction failure population.
North of 20% response rates or rates.
Clearly, we would like to see higher rates as now we think that we have both a.
M a C.
Based on the.
Reduced Crs profile.
And as well as.
To give this dose.
Dosing on a interim intermittent basis on.
And rather than continuous fusion with regard to the specific.
Tolerance for safety profile clearly.
In parallel.
The absence or markedly reduced.
Low grade Crs.
And limiting it to instantly.
Initial dosing and not later dosing would be I think a favorable profile.
Oh Wow they use both in early line in late line patients, but again. This is a decision that gilead would make.
Based on their expectations.
Okay got it and then last one for me just a very high level.
Just wondering if you can see we did a lot of inbounds for potential partnerships.
With mobile duo.
And if so maybe when you'd entertain partnerships that'd be more around the phase III or is that something you'd rather do sooner rather sooner rather than later.
Yes.
So the answer is we've had.
Barry.
Encouraging discussions historically about Burger duo with many.
Large complicated both pharma and biotech companies, what we have described to them.
Is.
Our interest in getting additional data in the Tamarac study Bill.
Before we would engage.
Yeah.
Further discussions on potential partnerships.
Back to the point I was making earlier because of the geography.
With me here are four volcker duo to treat <unk>.
Many many different tumors.
That is something we as Mac with just buybacks.
And so at the appropriate time.
I would envision it.
Development continues.
Favorably.
She came to figure it out.
Hum.
Good Ed.
Sure.
Both expand the opportunity not only in prostate cancer.
Other tumor types as well with a partner who has the.
The resources and capabilities to supported.
Along with us.
Got it very helpful. Thanks very much.
One moment for our next question.
Our next question comes from Stephen Wiley with Stifel. Your line is open.
Yes, good afternoon, thanks for taking the questions.
Maybe just a quick one on the Nextgen ADC efforts and Scott I know youre not going to be disclosing target antigens any time soon but.
I was just wondering philosophically, how you're kind of thinking about selecting.
Selecting target antigens for this next round of.
Of Adcs that you Couldnt get to the clinic and I guess, how far out on the risk curve are you willing to step considering you are tailoring our novel Linker and payload to these things and I guess when you declare the target for the first candidate in the first half of it.
Next year is this something that we should expect to fall into kind of a highly competitive buckets of.
Of ADC antigens that we've seen across the landscape or is this thing going to be kind of maybe a little bit more differentiated and unique thanks.
Thanks, Steven where we put it in.
In the selection of both the targets as well as the linker payload.
Clearly there is lots of competition.
Before we want to be thoughtful in the selection of both.
We feel that.
The company.
Okay.
So like.
Yeah.
Sure.
And given what <unk>.
Synaptics has already shown with regard to what we believe is superiority.
The other platform the ability of using a D. A R.
In this case close to four.
Yeah.
Probably <unk> of the equity can in.
Various configurations.
And our own.
Preclinical data showing favorable aspects of this.
With regard to the specifics.
Hum.
I think what you'll be pleased to see it.
I would say a a mixture.
Sets that are valid.
Validated to some degree but not necessarily.
Have any approved product market, where we can be very competitive.
There is opportunities for clearly novel targets that will no doubt is pursuing.
And in some cases, where there are some scanty data and deep and pursued but have been disappointing.
Which could be.
Described due to the.
Design of the particular molecules that had been tested so I think over there.
The next <unk>.
Six months, you will certainly see the first looks at.
Some of these targets.
The presentation that scientific meetings, and then later in 'twenty, four and going out and 25 will be ending.
A more.
Of these targets and I think that.
The pace, we are at right now.
Quite favorable where.
We're pushing the team.
To be able to have a new IMD on it now.
An annual or a slightly longer basis.
So that would provide both opportunities for organic growth program.
But also given the.
The importance of bringing in non dilutive capital of the opportunity for <unk>.
Partnerships there I should also point out that the core Synaptics also has partnerships with other companies.
Got you.
Using their linker toxin, so having that validation.
Early.
Later this year, a clear policy for from other molecules as well as our own we'll give a lot more encouragement.
For the value.
Our plan.
Great. Thanks for taking my question.
Yeah.
Again, ladies and gentlemen, if you have a question or comment at this time. Please press star one on your telephone.
And I'm not showing any further questions to start and I'll turn the call back over to Scott for any closing remarks.
Well, thank you operator, and thank you all for joining us.
Today, we look forward to providing ups.
<unk>.
In 2020 for both on our clinical and preclinical reference.
Hope you have a good day.
Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.
Okay.
[music].
Okay.
Okay.
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