Q4 2024 Absci Corp Earnings Call
Thank you for standing by and welcome to <unk>.
<unk> fourth quarter and full year 2024 business update and financial operating results conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press star one on your telephone if your question has been answered.
Speaker Change: I'd like to remove yourself from the queue simply press Star One again as a reminder, today's program is being recorded and now I'd like to introduce your host for today's program, Alex Khan, Vice President of Finance and Investor Relations. Thank you earlier today, <unk> released financial and operating results for the quarter and year ended December 31 2024.
Speaker Change: If you haven't received this news release or if you'd like to be added to the Companys distribution list. Please send an email to investors that outside dot com.
Speaker Change: An archived webcast of this call will be available for replay at <unk> Investor Relations website at investors that buy dot com for at least 90 days after this call.
Speaker Change: Joining me today are Shawn Mcclain, as founder and CEO, Zach Johnson, Chief Financial Officer, and Chief Business Officer Christian segment.
Speaker Change: Sorry, as SVP of drug creation will also joining for Q&A following prepared remarks.
Speaker Change: Before we begin I'd like to remind you that management will make statements. During this call that are forward looking within the meaning of the federal Securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated and you should not place undue reliance on forward looking statements additional information regarding these risks uncertainties and factors that could cause results to differ appears in the section.
Speaker Change: Titled Forward looking statements in the press release issued today and the documents and reports filed by upside from time to time with the Securities and Exchange Commission, except as required by law outside disclaims any intention or obligation to update or revise any financial our product pipeline projections or other forward looking statements either because of new information future events or otherwise.
Speaker Change: This conference call contains time sensitive information is accurate only as of the live broadcast March 18 2025.
Sean: With that I'll turn the call over to Sean.
Sean: Thanks, Alex Good morning, everyone. Thank you for joining us for our fourth quarter and full year 2024 business update call.
Sean: 'twenty 'twenty four it was a successful year for <unk>, sorry, I'm proud to say, we executed across all aspects of our business.
Sean: Including advancing our proprietary internal programs delivering on partner programs and adding four new partners to our ecosystem with collaborators.
We capped the year off with.
Sean: With our 24 R&D day in December.
Sean: Where we unveiled our potentially category defining Abf's 201 program targeting the prolactin receptor for the treatment of androgenic alopecia.
Sean: At this event, we shared new data supporting a potential best in class profile for <unk> 101, our.
Sean: Our anti <unk> program, and preclinical data or Avs, 301, and Avs 501 programs.
Sean: Additionally, we showcased new breakthroughs in de Novo antibody designed some art, leading AI platform and hosted distinguished guests presenters, including our Kols and partners such as Dr. <unk> from UCLA and Dr. Luis Diaz from Memorial Sloan Kettering for.
Sean: For those who did not give the webcast I encourage you to access the replay on our website.
Sean: Maybe a tier one in particular is an asset we are extremely excited about we see the opportunity for avs tier wanted to become a potential flagship assets lab side, but.
Sean: But first I'd like to reflect on the capabilities that enabled us to generate these differentiated antibody assets.
Sean: Looking back on 2024, we're encouraged by the significant advancements in our AI integrated drug creation platform.
Sean: Similar to how the broader tech industry experience and success of breakthroughs and generative AI, we view the progress of our model and platform in a similar light.
Sean: Just two years ago in January 23, we released our first AI de Novo preprint.
Sean: We have demonstrated notable platform improvements progressing from single PDR design, the designing antibody to target with no known binders.
Sean: These capabilities were clearly showcased in December, particularly through our collaboration with <unk>, which focused on designing a universally neutralizing HIV antibody.
Sean: Before discussing that collaboration further I'd like to highlight the key factors behind our success.
Sean: We see four.
Sean: Key ingredients for success.
Sean: Our data advantage our.
Sean: Our leading AI models.
Sean: Access to scalable compute and fostering a team with multi lingual expertise.
Sean: While we've spoken extensively about each of these in the past I'd, specifically like to focus on compute.
Sean: In January we announced a collaboration with <unk> a leader in high performance computing.
Sean: Part of this partnership <unk> made a $20 million strategic investment in App side.
Sean: This collaboration supports our mission of creating better biologics faster by offering optimized compute solutions for complex biological modeling equally.
Sean: These solutions provided exceptional performance reduce infrastructure costs and accelerated cycle times.
Sean: At the JP Morgan Healthcare conference in January I outlined several key reasons, we chose to partner with AMD.
Sean: AMD its chips gave us unmatched training resolution, allowing us to model large protein complex.
Sean: Without the need to crop preserving biological context, and enhancing model accuracy.
Sean: Mark this collaboration significantly accelerate throughput scaling and silicone antibody design and evaluation and ultimately reducing R&D timelines and costs.
Sean: Stepping back.
What's the broader purpose of Heartland generative AI for antibody design.
Sean: It's not just about designing faster cheaper, it's about creating truly differentiated candidates and unlocking novel biology for the.
Benefit of patients.
Sean: In December we shared a case study illustrating breakthroughs in AI de Novo design correct.
Sean: <unk> with <unk>.
Sean: Using our proprietary de Novo design model, we created antibodies targeting a difficult to drug epitope and HIV Coverity, Jon essentially facilitating the development of a universal neutralizing HIV antibody.
The Colbert region uniquely attached Bob only in the GP 120 opening confirmation has remained on targeted by previously neutralizing antibodies.
Sean: Successfully creating these antibodies marks a potential pivotal milestone and HIV vaccine research and underscores the capability of our de Novo design model to target previously Undruggable epitopes.
Sean: We're also actively applying our generative AI drug creation capabilities to our proprietary internal pipeline.
Sean: In December we unveiled ABF tier one a potential best in class anti prolactin receptor antibody for Angiogenic alopecia.
Sean: This is an indication where significant unmet need and a large patient population.
Accidentally 80 million people in the U S alone Andrew.
Sean: Angiogenic alopecia also known as male and female pattern hair loss in fact, 50% of men and 40% of women by the age of 50.
Sean: There's been no real innovation in nearly 30 years, creating a large market potential.
Sean: Our approach and not just slow hair loss.
Sean: Unlock an entirely new category focused on hair regrowth.
Sean: We have nominated a development candidate for Avs tier one supported by preclinical data, suggesting high affinity and potency.
Sean: Favorable safety and Immunogenicity.
Sean: Extended half life, enabling convenient infrequent dosing and excellent develop the ability to manufacture ability.
Sean: Preclinical model demonstrated improved higher growth compared to minoxidil.
Sean: As we advance Abf's 201, we envision a straightforward path to clinical development and have assembled a robust network of renowned hair in dermatology kols advising our progress.
Sean: Maybe a tier one is currently in IND, enabling studies.
Sean: With phase one trials anticipated to begin in early 'twenty six.
Sean: Since unveiling Avs 201, three months ago, we received very positive responses from industry experts in the financial community.
Sean: Given the compelling data clear development path and significant market opportunity. Our strategy is to develop avs pure one internally through later stage clinical development and proof of concept.
Sean: Retaining maximum value for outside.
Sean: Turning now to Aps 101, our potential best in class anti <unk> antibody.
Sean: At December at R&D day, we shared new data, indicating AVX 101 does reduce internalization of Tijuana are complex.
Sean: And in vitro PHP, one immunogenicity test compared to competitor molecules that hot high clinical Ada rates.
Sean: These data suggest AVX 101 may have lower 88 development risk in clinical settings. Additionally in January we showed new AVX 101, and HPE PK PD data confer.
Sean: Confirming prolonged target engagement demonstrating.
Sean: Demonstrating dose dependent engagement, including a ceiling effect and significantly improved target engagement compared to competitor molecules at comparable dosing regimes.
Sean: We plan to initiate phase one clinical studies for <unk>.
Sean: 101 in the first half of 2025 with an interim readout expected in the second half of this year.
We continue to see active partner interest and have begun developing a potential first in class bispecific antibody incorporating our <unk> antibody is one arm additional data will be provided later.
Sean: We recently shared data on 301.
Sean: 501 programs as well.
Sean: Give you a 301 targeting an undisclosed immuno oncology targets discovered through oxides reversing analogy platform showed expression across squamous cell carcinomas.
Sean: Our first in vivo target validation study demonstrated potent anti tumor response strongly supporting further development.
Sean: Great fiber on our potential best in class AI design anti <unk>, two antibody preclinical data confirms novel epitope interactions affinity comparable or superior to Trastuzumab <unk>.
Sean: You can see against Trastuzumab resistant genographic tumors expressing wild type curve to an good develop ability.
Sean: Earlier, I mentioned that our team was a key ingredient types our success.
Sean: This is evident in our achievements in 2024.
Sean: As always I'd like to thank our dedicated team at <unk> for their unwavering commitment and effort towards our Michigan.
Sean: With that I will turn the call over to Jack to walk through our new partnerships, our outlook and financial updates.
Jack: Thanks, Sean.
Jack: As Sean mentioned, we added two new partners towards the end of 2024 and achieved our partnership guidance for the year. In addition to our partnerships with Memorial Sloan Kettering Cancer Center, and twist Bioscience, which were announced earlier in 2024, we entered into new partnerships with Alcan and then Fedex in December.
Jack: Our collaboration without can combines outcomes novel target discovery and <unk> expertise with our leading AI didn't note with signed models with the aim of designing and co developing potential first in class Therapeutics together add site plan to co develop therapeutic candidates addressing novel targets.
Jack: Oncology and other indications such as immunology and inflammation.
Partnership will leverage outcomes predictive AI models and its biomedical datasets in patient derived organoid for target selection and validation.
Jack: Absolutely generative AI drug creation platform, including our de Novo antibody design models will be is to design novel therapeutic candidates against these targets.
Jack: Together, we aim to streamline and accelerate the development of novel Therapeutics targeting novel disease targets.
Jack: Our partnership within Fedex will leverage our leading generative AI drove accretion models to create novel antibody half life extension, our HOA capabilities for animal health applications.
Jack: With this partnership.
Jack: <unk> will utilize its AI models to design novel modular antibody sequences that confer half life extension and specific animal species.
Jack: Fedex will have rights to use the HOA sequences.
Jack: Ross its product portfolio to enhance duration of therapeutic effect and customer convenience, both significant potential differentiators in the animal health market.
Jack: This partnership includes R&D funding as well as election fees milestone payments and royalties on a product by product basis.
Jack: We believe this collaboration has the potential to address significant unmet needs in animal health, starting with initial applications for large market indications and canine medicine.
Jack: Since our IPO nearly four years ago, we have continued to evolve our business model as our capabilities have grown.
Jack: Today, we are focused on building and advancing a balanced portfolio of high quality high value therapeutic programs, including a growing number of proprietary internal wholly owned programs.
Jack: Moreover, while we continue to collaborate with partners to create therapeutic programs for their targets under traditional deal structures.
Jack: We have also more recently initiated creative co development partnerships to leverage risk sharing and cost reduction synergies for the creation and development of first in class therapeutic programs.
Jack: Based on our business model today, including expansion and advancement of our wholly owned programs.
Jack: We believe that the legacy metric.
Number of external partnered programs simply on a gross volume basis.
Jack: Outdated and Theres now a less meaningful approach to understanding and valuing our business <unk>.
Jack: Our strategy is based on leveraging our platform and resources.
Jack: To create a portfolio of novel and differentiated therapeutic programs that offer the most promising return.
Jack: Accordingly, we invest our resources and internal programs as well as a variety of partnership programs that we believe offer the best risk return profile, rather than simply seeking a potential gross number of partnership programs.
Jack: We of course continue to see value in adding partner programs with high quality collaborators and will continue to do so on a selective basis hence.
Jack: Hence going forward, we do not plan to provide an exact number of expected new partners for <unk>.
Jack: <unk> programs as a business outlook.
Jack: As we have in prior years, but rather planned to provide material updates and guidance on our internal <unk> partnered therapeutic programs.
Jack: Possible.
Speaker Change: This year, we plan to advance our proprietary internal asset programs as described by Shawn earlier, we also anticipate signing one or more partnerships, including with a large pharma company for a drug creation collaboration.
Speaker Change: We continue to plan to provide material updates on ongoing partner programs as they advance through development.
Speaker Change: We will also very soon be a clinical stage biotech company with ABS one of unexpected to enter the clinic shortly and ABS tier one accelerating towards first in human clinical trials potentially early next year.
Speaker Change: And as a reminder, our business model is focused on out licensing or selling our internal programs and co develop programs following value inflection proof points as early as preclinical proof of concept or much later stages.
Speaker Change: Turning now to our financials revenue in the fourth quarter was zero point $7 million as we.
Speaker Change: Each group, that's our partner programs.
Speaker Change: Research and development expenses were $18 4 million for the three months ended December 31, 2024, as compared to $12 3 million for the prior year period.
Speaker Change: This increase was primarily driven by advancement of our internal programs, including direct costs associated with IND, enabling studies for <unk> 101.
Speaker Change: The increase in stock compensation expense.
Speaker Change: Selling general and administrative expenses were $8 8 million for the three months ending December 31, 2024, as compared to $9 3 million for the prior year period.
Speaker Change: Decrease was due to lower personnel and other costs offset by an increase in stock compensation expense.
Speaker Change: For the full year 2024.
Speaker Change: <unk> use of cash cash equivalents and short term investments exclusive of partnered program payments was approximately $72 million.
Speaker Change: The lower outlook of $75 million on a gross basis.
Speaker Change: Turning to our balance sheet, we ended the year with $112 $4 million in cash cash equivalents and short term investments as compared to $127 1 million as of September 32024.
Speaker Change: In January of this year, we announced a new strategic collaboration with AMD.
Speaker Change: Part of that collaboration.
Speaker Change: <unk> made a $20 million equity spent in app purchasing assay common shares at a price representing an approximate 14% premium to <unk>.
Speaker Change: <unk> share price based on the prior day's market closing price.
Speaker Change: Further this year, we have also raised an additional approximately $20 million by utilizing our aftermarket facility.
Speaker Change: The majority of which was raised from two premier mutual funds.
Speaker Change: This additional approximately $40 million raised since the end of 2024.
Speaker Change: It enables us to continue investing in our internal programs, including accelerating the development of ABS 201.
Speaker Change: Our anti.
Speaker Change: Our program for the treatment of Angiogenic alopecia as well as our co development programs.
Speaker Change: We continue to deepen our focus on high value proprietary internal programs as well as high quality co development and drug creation partnerships with industry leaders, who bring synergistic capabilities.
Speaker Change: We believe that this strategic balanced approach will provide us with the best return for shareholders.
Speaker Change: Based on our current plan, we believe our existing cash cash equivalents and short term investments will be sufficient to fund our operations into the first half of 2027.
Speaker Change: We are very pleased with the progress we have made over the past year and are confident in our ability to execute across our portfolio of programs this year and beyond with that I'll turn it back to Sean.
Sean: Thanks Zack.
Sean: In closing we've made tremendous recent progress across our platform and internal pipeline.
Sean: New data for <unk> 101, reinforce its best in class potential and <unk> 201 presents an exciting opportunity to create an entirely new category addressing a significant market and patient need.
Sean: In coming months, we will reach the milestone of becoming a clinical stage biotech company.
Sean: 101 entered the clinic.
Sean: As we also advanced Avs 201 towards the clinic, we're energized by the potential to bring this innovative product to roughly 80 million people affected in the U S.
Sean: Alongside progress on our internal programs as Zach mentioned, we anticipate adding one or more new partners, including a large pharma partnership.
Sean: Again these achievements are possible because of our dedicated team of lenders on our side could advance our mission each and every day.
Sean: Thank you all.
Speaker Change: Now I'll turn the call back to the operator for <unk>.
Sean: Q&A operator.
Speaker Change: Certainly and our first question for today comes from the line of Quickbooks, Deborah conduct from true Securities. Your question. Please.
Alex Khan: Hi, This is Alex on for <unk>, Congrats on the progress looking forward to another exciting year with App side.
Speaker Change: We had a couple questions on Rins.
Speaker Change: For upside why don't want them, we saw compelling preclinical data last year at your R&D day as we wait for the clinical trials get underway now in the phase one data later this year does that so I plan to conduct additional preclinical studies with ABS garnered one and would see that.
Speaker Change: And maybe also with ABS to one as well if there are preclinical studies underway and plan to present that in the 2025 timeframe. Thanks.
Alex Khan: Yes, great Great question Alex.
Christian: Christian do you want to take that.
Christian: Sure happy to so regarding AVX 101, we have disclosed at R&D day.
Christian: Another preclinical data.
Christian: JP Morgan we have also.
Christian: <unk> disclosed.
Christian: Engagement data in nonhuman primates for.
Christian: 101.
Christian: And we are essentially wrapping up our.
Christian: R&D, enabling work currently.
Christian: So we will.
Christian: We will disclose at a scientific conference before toxicology data.
Christian: But we are proceeding towards clinical development as mentioned and then for <unk> 201.
Christian: Our India, IMD, enabling phase and we will disclose data in the <unk>.
Christian: Course of.
Christian: This work.
Christian: Altra preferably at a scientific conference that's upcoming.
Christian: Yes, okay great.
Christian: I was just going to say on an avs tier one.
Christian: We have accelerated our timeline on that we do plan to.
Christian: It'd be in the clinic in early 2006.
Christian: With potential interim efficacy readout next year on Avs 201, So we'll have 101 in the clinic later this year followed by 201.
Christian: That's great.
Christian: One more if I may.
Speaker Change: I think you said that youre not going to provide.
Speaker Change: The number of new partners going forward some standard practice for the firm.
Speaker Change: A more material guidance on internal assets and also the partner programs and any additional color you can provide on that.
Speaker Change: Partnered program updates what that might look like given that other people might be taking the lead as part of your contracts over there, but obviously very interested in all of that development for investors and for us.
Speaker Change: Yes, absolutely we are really focused on the large pharma partnership we plan to execute one new large pharma platform deal this year.
Speaker Change: And then additionally, we are in discussions on Aps 101 on.
Speaker Change: Potentially out licensing that asset.
Speaker Change: And so there are definitely are going to continue to be.
Speaker Change: Transactions, but we really want to be focused then on transactions that can bring in.
Speaker Change: A significant upfront payment back.
Speaker Change: Non dilutive way extended cash runway and it also provides really nice validation for the platform and Additionally allows us to go into other indications that we would not pursue on our own and really having us to have a diversified portfolio xactly is there anything else you'd like to add there.
Speaker Change: Yes, I mean, I will just add.
Speaker Change: Going forward there'll be a much greater focus on providing guidance around our internal programs and that code of programs.
Speaker Change: Particularly once theyre out of D C stage.
Speaker Change: As you would imagine in our drug creation partnerships disclosure of information on those programs.
Speaker Change: Sometimes.
Speaker Change: And that is easy because that partner would have to agree to that but certainly for the programs that we're advancing and as you've seen we've evolved our business model to have a greater focus on internal programs and now adding <unk> in there as well I think gives us.
Speaker Change: Quite a bit of guidance to provide around those and so that'll be our focus going forward.
Speaker Change: Fantastic. Thank you all.
Speaker Change: Thank you and our next question comes from the line of our <unk>. Your question. Please from Guggenheim.
Sami Unquote: Hi, Sami Unquote, Ron Congrats on all the progress in 2024.
Speaker Change: On.
Speaker Change: Another question on <unk> one.
Speaker Change: Given that you could give.
Speaker Change: Some quick clinically.
Speaker Change: You can get inbound because design.
Speaker Change: <unk>.
Speaker Change: Good plan.
Christian: Yes, that's a great question I can speak a little bit to the design and hand, it over to Christian for the.
Speaker Change: <unk> so the way we're thinking about this right now is that we will start with a.
Christian: A sad.
Speaker Change: Study that would begin.
Christian: Sometime early next year.
Christian: Followed by a Mad study, where we do plan to.
Christian: Power that study appropriately to be able to achieve proof of concept.
Christian: And.
Christian: And all of that will be beginning next year Christian do you want to speak to the endpoints that we're going to be working out.
Christian: Yes, absolutely great question. So when it comes to energy I think alopecia.
Christian: There is a number of well accepted endpoints described and importantly, they can all be measured with.
Christian: Very well established device trico.
Christian: <unk> scanning device.
Christian: These endpoints have also been accepted by regulators.
Christian: Our regulators. So this is a noninvasive.
Christian: Computer assisted optical measurement of higher density 10 million head count and it allows us essentially to progress.
Christian: <unk> very effectively through clinical development.
Christian: Yes.
Christian: Thank you that's very helpful and maybe one more on the.
Christian: Large pharma partnerships.
Speaker Change: Welcome to secure in 2025.
Speaker Change: Can you share maybe just on the high level, which therapeutic areas.
Speaker Change: This conference I'm, focusing on maybe what companies are interested than maybe where they recognize our capabilities in Europe.
Speaker Change: Ricky.
Speaker Change: Yeah.
Speaker Change: So I would say that the focus is pretty broad in terms of overall.
Speaker Change: Indication.
Speaker Change: I think some of the focuses are definitely on ini in oncology, but I would say more generally where the focus lies and what's really driving these platform partnerships.
Speaker Change: The de Novo models capability that we've been able to show.
Speaker Change: Where we can go after.
Speaker Change: <unk> that have no known binders that have been difficult to drug in the past and being able to ultimately drug those particular epitopes or targets with our platform and I think what we're seeing is that there's a lot of interest in ion channels like the ones, we're working on with <unk>.
Speaker Change: <unk> or.
Speaker Change: Or various side <unk>.
Speaker Change: Were there theres been difficulty dragging is.
Speaker Change: And the indications have been pretty broad in terms of overall interest.
Speaker Change: Zach.
Speaker Change: Did I Miss anything there or do you want to add.
Speaker Change: No. The only one thing I would add are sending US you can think of.
Speaker Change: The partnerships, we're working on and are working towards with large pharma as being multi target and to sean's point that can span multiple indications.
Speaker Change: Thank you.
Speaker Change: Thank you and our next question comes from the line of Vikram pure hit from Morgan Stanley. Your question. Please.
Speaker Change: Hi, good afternoon, thanks for taking my questions.
Speaker Change: We had two first on 101, we just wanted to revisit.
Speaker Change: Expectations for the readout in the second half of the year, but just curious to see.
Any updated thoughts you might have around the size of the data set the scope of the data set will be receiving and.
Speaker Change: Just your current view on what you would consider a really strong outcome here and then secondly, I think you mentioned that you're working on a bi specific.
<unk> addresses <unk> part, but just curious on what the next steps there might be and what you think the future for that program could be whether that could be something thats. Eventually partnered alongside one on one or would that be a separate effort you want to hold onto for a longer time point.
Nick Graham: Yeah, Thanks, Nick Graham.
Christian: Can answer your second one and hand, the first question over to Christian.
Nick Graham: So regarding the bi specific.
Christian: Our planning on developing a potential first in class.
Christian: <unk> by specific with Tijuana.
Christian: One arm.
Christian: A target that has.
Christian: <unk> been known but it has been difficult to drug in the past and we see this as.
An exciting potential first in class.
Christian: Tier one eight by specific but additionally.
Christian: Developing it out as a mono therapy as well.
Christian: And we.
Christian: Planned to have a read on that.
Christian: This year and then.
Christian: D C to follow.
Christian: Shortly thereafter.
Christian: But we do see that size.
Christian: I think the exciting evolution of the ini pipeline that we're building out and we do see.
Christian: Combo based therapy or being able to hit multiple.
Christian: Pathways.
Christian: By specific.
Christian: As a way to.
Christian: Really meet some of the unmet needs within.
Christian: Within the IBD and UC space.
Christian: Christian I'll hand, it over to you for anything I missed there and then.
Speaker Change: Answering the first question.
Christian: Thanks.
Christian: Thank you. Our next question comes right in line.
Christian: Okay.
Christian: Alright Christian.
Christian: Kristen are you there.
Christian: Did we lose Christian.
Christian: His line.
Christian: Yes, we can hear you Kristen.
Christian: Okay.
Christian: Especially are you still there.
Christian: Can you hear me.
Christian: Yeah, we can hear you now.
Christian: Alright.
Christian: Sure, what's going on and I'll try again.
Christian: With regard to this term readout in the second half of this year previous one on one.
Christian: But what you can expect to see something quite similar what we have disclosed for non human primate.
Christian: J P mod already up this year, so essentially what we'd like to see them.
Christian: As a demonstration of sustained innovation soluble tier one in.
Christian: <unk> in humans.
Christian: After a single dose and we'd like to see that in one cohort after a single dose administration.
Christian: That's an important derisking point and ill just remind you of that.
Christian: The competitor molecules that have claimed a prolonged half life have to our knowledge not disclosed target engagement in nonhuman primate, Hence we think we are.
Christian: Well positions.
Christian: Constraint, that's not only in human primates also instruments.
Gil Blum: Thank you and our next question comes from the line of Gil Blum from Needham and company. Your question. Please.
Gil Blum: Good afternoon, and thanks for taking our questions.
Christian: So one relating to the <unk>.
Gil Blum: <unk> pharma partnership so.
Christian: Did some of the achievements you guys demonstrated.
Gil Blum: Binding to the caldera region.
Gil Blum: HIV does that play into your pharma discussions and I have a follow up.
Gil Blum: Yes that case study was.
Gil Blum: Has been a big driver and the discussions we're having with large pharma.
Gil Blum: Now and I think that's a really strong illustration of how we can go after these difficult targets that still exist.
Gil Blum: And.
Gil Blum: We do believe that back back case study.
Gil Blum: An important piece to the value prop and ultimately driving these states large pharma partnerships across the finish line.
Gil Blum: Hey, Gil.
Gil Blum: Zack I might add to that too just to contextualize it.
Speaker Change: The thing that we.
Speaker Change: We're excited about it and we've seen resonate with the pharma companies, we're dialogue with us because not only the results here, but if you look over the history of the version of our models you can see the the kind of dramatic performance and capability gains.
Speaker Change: As we go from early versions back in 2022 to where we are today with the models that can address the caldera epitope for example.
Speaker Change: Okay very helpful.
Speaker Change: And as it relates to this by specifically you mentioned four.
Speaker Change: For IBD.
Speaker Change: What kind of dynamics should we imagine here with with Aps 101, I mean, there are other companies in this space that are really taking.
Speaker Change: Laid on this kind of.
Speaker Change: Okay.
Speaker Change: Combo approach, it's just what we're thinking of here or is this something really completely different. Thank you.
Speaker Change: Yeah.
Speaker Change: We do see this as <unk>.
Speaker Change: Difference.
Christian: Christian do you want to maybe talk a little bit about.
Speaker Change: The biology, and what we're trying to achieve with this particular asset.
Christian: Yeah, absolutely so yes, you're of course correct.
Speaker Change: Competition.
Speaker Change: Has.
Speaker Change: I want to run combination studies.
Speaker Change: We think obviously this is quite interesting we do think a bispecific can potentially provide it provide additional value.
Speaker Change: Yes.
Speaker Change: Will it be more difficult to realize in the clinic.
Speaker Change: And combination studies.
So we haven't disclosed the target we're looking at specifically, but we do think there is potentially a strong synergy between tier one.
Speaker Change: The other mechanism.
Speaker Change: Yes, and I will note this is not an <unk>.
Speaker Change: IL 23, or an alpha four beta seven this is a.
Speaker Change: A novel.
Speaker Change: Target again, thats been difficult to drug and as a monotherapy it definitely.
Speaker Change: Yes, it would be a first in class at both as a monotherapy and as a bi specific.
Speaker Change: Great very helpful. Thanks for taking my questions.
Speaker Change: Thank you and our next question comes from the line of <unk>.
Speaker Change: <unk> Smith from TB Cowen Your question. Please.
Speaker Change: Hi, This is Jackie on for Brandon. Thanks for taking the questions. Maybe just touching back on your HIV program could you remind us on how you plan on progressing that program and kind of how that works under the current partnership structure and giving.
Speaker Change: Do you have any additional color on when we might see updates on the progress regarding that program.
Speaker Change: Yes. So this is a collaboration that we have with <unk> and it's being funded by the Gates Foundation and so we're going to continue to develop this molecule and.
Speaker Change: At the appropriate time worked with the Gates Foundation.
Speaker Change: Taking this into the clinic, assuming the preclinical data it looks good.
Speaker Change: And at at that point in time, once we start to see some.
Speaker Change: Yes indeed.
Speaker Change: Results, we should be able to come out with a plan on how we plan to.
Now this in collaboration with the Caltech and the Gates Foundation, so stay tuned.
Speaker Change: That's great and maybe just swinging over to more of the business side can you give us any update on how to kind of look at 2025, particularly around the expected ramp in spend from the study initiations and maybe.
Speaker Change: Anticipated cash burn rate.
Speaker Change: Yes, I'll, let you take that.
Speaker Change: Yes, sure so I think.
Speaker Change: To start off just to note that we've reiterated our.
Speaker Change: Guidance that we have a balance sheet that will fund our strategy and operations into the first half of 2007.
Speaker Change: So I think we're very well positioned.
To advance our phase one.
Speaker Change: Studies for <unk> 101, and as we mentioned earlier, we will have an interim readout on that trial in the second half of this year.
Speaker Change: I think the other point with Sean mentioned earlier is we'll be accelerating the development plan for Aps 201, and that is within our budget.
Speaker Change: The plan there is to be able to initiate person human studies early next year with.
With the potential for an interim efficacy readout in 2026.
Speaker Change: That's all.
Speaker Change: Our core strategic plan and I think we're capitalized to achieve that as well as advanced some earlier stage programs that we're working on today.
Speaker Change: Alright, thank you.
Speaker Change: Thank you as a reminder, ladies and gentlemen, if you do have a question at this time. Please press star one on your telephone. Our next question comes from the line of Dave on Ciena Chatterji from Jones Your question. Please.
Speaker Change: Thanks for taking my question. So given the recent positive data from Sanofi and <unk>.
Speaker Change: Does that including ulcerative colitis.
Speaker Change: Particularly strong efficacy annual EBITDA, reaching patients how is outside positioning and thanks to everyone on the assay to compete.
Speaker Change: What explains that it raised the bar.
Speaker Change: In terms of like Nankai performance, our commerce, hence attention.
Speaker Change: Great question Christian do you want to take that.
Speaker Change: Yes, great question, So we have.
Speaker Change: We have obviously.
Speaker Change: <unk> seen the Sanofi Teva.
Speaker Change: Data.
Speaker Change: It is.
Speaker Change: Indeed.
Speaker Change: Impressive.
Speaker Change: However, what's interesting to observe that.
Speaker Change: The inclusion exclusion criteria.
Speaker Change: Yes.
Speaker Change: Perhaps.
Speaker Change: Aspect that makes it a little bit more difficult to compare this study.
Speaker Change: Other data that's out there in particular.
Speaker Change: A significant share of.
Patients.
Speaker Change: So that.
Speaker Change: That brings the question.
Speaker Change: To what extent can we expect a similar data from from.
Speaker Change: From other antibodies the other the other interesting.
Speaker Change: We believe.
Speaker Change: It gets 101, there may be potential too.
Speaker Change: Potentially dose higher than what we've seen with competitors.
Speaker Change: So this is an avenue, we are exploring as well so it remains to be seen whether in terms of the efficacy bears the ceiling effect or weather.
Speaker Change: Dosing Hyatt can potentially lead to additional efficacy.
Speaker Change: Okay. Thanks for that.
Speaker Change: Thank you and our next question comes from the line.
Speaker Change: Wayne.
Speaker Change: Swam.
Speaker Change: Right.
Speaker Change: Kenneth.
Speaker Change: From H C. W. Your question please.
Speaker Change: Thank you this is RK from H C Wainwright.
Speaker Change: Good afternoon, Shannon Zak from Alex.
Speaker Change: So.
Speaker Change: Sure.
Speaker Change: Lot of my questions on the pipeline have been already asked.
Speaker Change: Yes.
Speaker Change: In the time that you spend.
Speaker Change: Generating.
Speaker Change: This pipeline.
Speaker Change: How much of that data that.
Speaker Change: That has allowed you to expand the pipeline are you able to take back into your model.
Speaker Change: <unk> models.
Speaker Change: And are you able to strengthen that.
Speaker Change: And what sort of.
Speaker Change: Benefits are you seeing by developing this kind of a.
Speaker Change: Ross pipeline.
Speaker Change: And the second part of the question is.
Speaker Change: In your initial conversations with Mark made back in 2021.
Speaker Change: What sort of.
Speaker Change: Conversations happen now when you start working with potential partners.
Speaker Change: What's the evolution there.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yeah, Great question, so to answer the first one RK.
Speaker Change: We are we have the lab and in the loop process.
Speaker Change: We're in a six week time period, we can go from.
Speaker Change: And data in our wet lab to training our models to validating that and that occurred both on as you mentioned are.
Speaker Change: Our own internal pipeline, but also in our partnered programs.
Speaker Change: So that laden process allows us to rapidly iterate on on the design and the architectures of our models to continually improve.
Speaker Change: Well, it's on being able to feed and new data for training, which is obviously helping us.
Speaker Change: Increase.
Speaker Change: The overall accuracy.
Speaker Change: And general lives ability of these models.
Speaker Change: Maybe.
Even so two two and half years ago, we've made.
Tremendous progress from being able to design the <unk> III.
Speaker Change: Of an antibody to now being able to design, an antibody where there was no known binder.
Speaker Change: Difficult and challenging targets like the cold air region or ion.
Speaker Change: Channels, and we see again that that lab in the loop process is really key to unlocking.
Speaker Change: Our ability to increase the generalizability and accuracy of our models and that's really the reason.
Speaker Change: While we have been able to achieve what we have today.
Zach Johnson: Zach do you want to answer that second question.
Zach Johnson: Yes, sure breeches up exactly what you were you were describing Sean.
Speaker Change: RK, our discussions with pharma right now are really highly.
Speaker Change: A highly centered on the de Novo design models that we have and the capabilities that we have advanced over the last year to two years.
Speaker Change: And so I think the big value proposition.
Speaker Change: <unk> point is sort of unlocking these targets that haven't been addressable with.
Speaker Change: Traditional antibody discovery technologies, and so thats, a real central value proposition that we're actively exploring with pharma right now.
Speaker Change: There are some other interest points to around.
Speaker Change: The ability to create novel pharmacology profiles.
Speaker Change: The ph dependent binding.
Speaker Change: Definitely some interest in that that aspect of what we're doing and some of the data.
Speaker Change: Put out at R&D day.
Speaker Change: You can refer to but back to Sean's point I mean, the biggest emphasis here and I think the biggest value proposition.
Speaker Change: Just being able to use those to enable de novo sign models to address these targets where theres really.
Speaker Change: Known biology, but they just have not been addressable by traditional techniques.
Bob: Thank you thank you Bob.
Speaker Change: Taking my questions.
Speaker Change: Thank you and as a reminder, ladies and gentlemen, if you do have a question at this time. Please press star one on your telephone.
Speaker Change: Okay.
Speaker Change: And this does conclude the question and answer session as well as today's program. Thank you ladies and gentlemen for your participation you may now disconnect. Good day.
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