CytomX Therapeutics (CTMX) 9 Nov 222022 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the CytomX Therapeutics Third Quarter 2022 Financial Results Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference call over to your today's speaker Chris Ogden, Senior Vice President of Finance and Accounting. The floor is yours.

you. Thank thank us. and for you afternoon, joining Good

undertake are Before during making this I'd as encourage materials, release like everyone the that read no release our many which most this future, at forward-looking information, filings or risks uncertainties financial and everyone that have the statements of summary to obligation predict recent to are uncertainties SEC. press are update Earlier sec.gov. press and includes risks remind that they the SEC which any control. call, to public future Important to a Because quarter developments statements forward-looking highlights we third and whether XXXX to our afternoon We forward-looking results to inherent We today's associated otherwise. a filed and of and begin, set are statements. company. with outside relate been new subject difficult we will of the result issued our a recent we of at the forth in with developments be

quarter. Chief pipeline of With Sean. third provide the Dr. press website. the that, recording Executive release and section call the update me this be With me under over Sean is McCarthy, the the will for Officer to CytomX's and and financials let and call a News of before today found on the Investors business Additionally, Chairman. can Sean through I walk call a turn our

progress everyone. at an and us on Chris, recent for afternoon, good joining for you, Thank Thanks CytomX. update

patients, and platform with deliver on destroy date than in important tissue, platform. clinical cancer and clinical cancer. in differentiated our to more with learnings broad are of leveraging significantly have CytomX medicines is our we this and differently, experience therapeutics Our applicability people the to we're highlight of mission activation approach continue tumor whom achievements now many and of benefited. biologic conditional scientific to CytomX's XXX for to Probody designed focused achieve to Probody therapies have depth at

potential cytokines. have across Importantly, checkpoint and drug the cell masking the result multiple expertise T of and achievements bispecifics including biologic mapping microenvironment. deep the to conjugates, are shown scientific inhibitors, improve protease we therapeutic These the antibody of biologic window our the modalities tumor in in platform

to field in to continuous Our Conditional that cancer as cancer is of in and our frontier. activation to on to to at meaningful deliver next-generation To internal we pipeline this programs. our company prioritize opportunities journey. on our field. Last decision and the medicines patients. an for is platform the make time must to of conditional Localization impact building of CytomX bold, and our along industry is forefront order most wholly-owned and immense central our activation we focus activation new made potential learning promise conviction to deliver is conditional an the pipeline has time the takes that area recognized difficult breakthrough increasingly the restructure cancer and the company the resources the R&D biggest partner important of difference, action time, of therapy and via the likely quarter, biologics offers in take patients. from persistence Innovation decisive

is remains a into and XXXX CytomX the well funded As for positioned result, it's strong, future.

important next-generation I'd candidates, our across lead oncology. to programs. wholly-owned unmet X multiple Phase areas addressing needed now and review preclinical with from spans pipeline many I'd start like pipeline our to briefly of and modalities CX-XXX. CX-XXXX like is current Our

that to broaden for in potentially utility predictive of optimize platform CX-XXX, historically clinical incorporated In have order interferon have their conditional targets therapeutic programs, have and expertise and and to to Now promising learnings due targets limited of clinical we validated index the activation. these potential design the through our CX-XXXX these we EpCAM selected toxicities. respectively, systemic previously molecular been alpha-XB, in

on now CX-XXXX. by regarded has as high others. has and been clinically Focusing target a EpCAM been validated potential for decades oncology

observed activity inhibitor exciting matching we expression therapeutic and sensitivity. to in program, World index for with therapeutics for the the We EpCAM-expressing At successful as in efforts of of colorectal action cancer XXXX. selected target therapeutic and forward example, date a profile topoisomerase including, mechanism The payload and cathodes QX, generate this for presented have payload an the to HERX. with data to epithelial clinical for the a tissues. well-characterized unveil cancer. program were for this preclinical of with tumor wide and Conference toxicities based recent is to TOPO-X-inhibiting an the sensitivity this the in profile profile epithelial X ADC and been anticipate ADC the not strong cancers as tailored XXXX for ADC, camptothecin for activity World systemic of including provide activated conditionally tumor N predictive However, of breast pleased by this index we the the tolerability IND in on payload demonstrated novel to ADCs, models, path class anti-EpCAM the At half newest multiple our in clinical data strong XXXX during and EpCAM second CX-XXXX preclinical filing due optimize our ADC. groundbreaking

immunotherapeutic clinical later potentially with to conditionally-activated immune combines an IL-XX. believe in interferon to stimulates we alpha will data efforts demonstrated our resistant to cancers. preclinical refractory cytokine unlock IL-X, antitumor therapeutic CX-XXX, alpha-Xb, to for types its that and/or SITC Interferon highlighting superior provides At responses now share the the Turning we activate antigen-presenting tremendous activity improve IL-XX activating checkpoint potential cancer interferon. a cells T offering cells to and checkpoint and has and inhibition, lead to approach cytotoxic alpha-Xb in unmasked program within multiple effectively this broad window week, versus potential is field. CX-XXX, approved our Interferon

due toxicity. alpha the been to anticancer of However, harness its systemic interferon activity powerful difficult to has thus

data limiting effects. antitumor show the at presented SITC tolerability unmasked index therapeutic to with potent CX-XXX, enhanced be an its a wide interferon profile versus For without

activity wide XXXX. filing data these CX-XXX's We combination well best-in-class tumor range a potential when tumor therapy for rapidly inhibition. CX-XXX to clinical checkpoint for we of evaluation half second also the preferential potentially synergistic of in for centerpiece and unique microenvironment towards effects has Importantly, types, a program become as IND as the believe the combined this of aim highlights with with the to an advance targeted potential

stage now on clinical pipeline. Moving our to

We Probody continue with programs. multiple partners advance to to therapeutic work intensively our

version At ESMO promising Bristol-Myers with in Phase ipilimumab. progress, study important ongoing Squibb including BMS the X with presented X/X work September, making patients is Our advanced Probody from updated in cancers. an with data BMS-XXXXXX, of Phase

evidence and to profile ipilimumab tumor of demonstrated at in standard are therapeutic CTLA-X doses reported immuno-oncology being for patients prostate in with combination date. strategy, study a more of ESMO window. Phase in XXX plus be Clinical an The breast anti-CTLA-X continued clinical nivo has encouraging carcinoma, blockade encouraged BMS but response Both hepatocellular and continues in provides case clinical also efficacious with potentially colorectal update higher dosing. to narrow to activity a microsatellite We activity by melanoma, types, and nivolumab, a enabling to be cancer. doses in advanced study X study evaluate versus Phase therapy. was randomized including particularly the continues as and in cancer. stable ipi higher melanoma. than CTLA-X monotherapy The is nivo important Probody in platform, triple-negative XXX advanced and tolerated cancer studied multiple foundational and a particularly X with combination the appears from the in safety combination target a castration-resistant XXXX

Probody in titled This webinar on focused next-generation Legacy Building also During and the CTLA-X our X also presentation as of presentation BMS targeting CTLA-X continues highlighted in study focus. the a work BMS on QX, anti-CTLA-X BMS-XXXXXX portfolio antibodies strategy is the in both of Probody aimed XXX, on and Ipilimumab. the core T-cell advance focused through which patients be the BMS to the this in collaborative This monotherapy to poster preclinical a solid nonfucosylated company's Phase the ipilimumab of with SITC in the continues in will version poster is of APC-mediated superior the combination advanced data Probody, also presenting which XXX, strategy include to enhancing week, this priming. SITC nivo clinical non-mass at with at clinic. for BMS-XXXXXX, benefit on series a tumors. will

over We time. to to next-generation look continue programs excited BMS role updates be to be playing an in such we CTLA-X and these on clinical future important efforts, forward

efficiency to and CX-XXXX, expressed an as recognized target CDXX tumors. of receptor because or solid directed for therapy because in internalizing has highly long with as ADC, many cancer on transferrin hematologic and an our AbbVie. CDXX partnered been attractive transporter it's its Moving

into the for XXXX. fourth encouraging ADC been demonstrated tissues. advanced the to previously complete is many CX-XXXX activity CX-XXXX squamous that to cohort expansion targeted Phase has subsequently has X CDXX undruggable conditionally-activated quarter is solid a target the However, this Phase update all tolerability on into multi-cohort now in lung study. antitumor expression Probody expected its and expansion has data in a phase types. is Enrollment normal tumor in A X due and favorable three of

with and now the suited In biologic of data dose engagers we EGFR cancer for global this we the of and this the candidate, combination. this preclinical the work cytokines goal like cancers, key to with to the updates. led across we ADCs, R&D, of demonstrating is antibodies. program Probody modalities, far that is conditionally AbbVie, are co-development selecting would escalation subsequent we modality, anticipate technology of very many to T-cell for goal we and target T published with could partner, We now and junction this believe a inhibitors. mature. a fourth tumor dose collaboration, engaging assessing to steps in to well powerful X to expansions September Thus from with in broad while cell continue the in is providing underway a has Research, EGFR-CDX versatile expand program. future I call, and our potential positive to bispecific of Cancer our CX-XXX CX-XXX, discussed Additionally, a engager for bispecific three activity T dialogue types. Localization forward the the activity move safety clinical gastroesophageal safety potent next go-forward maintaining esophageal well has platform cell our in Phase application believe this active we to cohort our partnered data anticancer as window This checkpoint cancer on look Amgen address and have challenge.

turn with to a over Chris financial now Let for overview the call provide the me to quarter. you

XXXX. equivalents the pleased in you today. XX, with XXXX share September of And as financial with as continue third financials projected runway to earlier, million I'm cash you, investments in cash, announced remains be able our in Sean restructuring long cash an July term. position to Thank CytomX quarter we strong Sean. to our to and on update a look extends mentioned strategic into the as $XXX

our diligently provides flexibility scale and both opportunities needs. collaboration Additionally, and programs advancing approach wholly-owned our pipeline our for of significantly value-creating broadens company the the in to manage capital

Given our strategy. pipeline and the a external in the our as platform, internal and breadth view key capital balance both management and to R&D we advantage of leveraging core

Now XXXX turning to third the results. quarter

back by to the the was the to due XX, million September million $XX.X to expenses for million million in during for that, With XXXX, was $XX.X ended closing increased third decrease restructuring corresponding million outside consulting $XX.X compared during expenses. reduction QX quarter, third decrease the in over to decrease was months $X.X XXXX. of were For and expenses XXXX. quarter compared due The revenue workforce G&A to XXXX. turn $X.X million primarily increase expenses. to I'll The XXXX mainly $XX.X QX R&D three a the period call Sean a the remarks. of

efforts. XXXX, platform at our continues to points we realization Chris. first continued expect where mature which cancer, of In the remain The commitment. lie We're pipeline for and inflection partners, and promise substantial advance year in firmly conditional of expect from people to a our our patients. holds complete X impact and teach scientific for to to translational activation benefit the near with cycle progress bedside cohort file cancer summary, the with and we Thanks, applications continued key to cell most bench term, data see steadfast highest CytomX engager vision restructuring from bench technology to In we the of our a of T study update for provide us as the looking our in with CX-XXXX two lung the the ahead reach of to our Phase INDs. our new we

Our cancer efforts from unmatched derived developing experience in conditionally activated differently. destroy designing relentless biologics and to our

to remain preclinical we market to progress clinical make Despite business development for term continue long firmly can. CytomX will corporate on leading the efforts to and an difference in valued development building challenging of corporate innovator. as integral now partnerships, strategy. new our make for we also we as to Operator, the our let's everyone open the up continue with Thanks our part We and focused current Q&A. conditions, pursue a involved call biggest

Thank you. question Peter yours. [Operator The Instructions] comes Our of Barclays. is first Lawson from floor

taking for Thanks me first.

data ups? thanks this CX-XXXX got Thank you. year? of should I've Sean, on a later much we And Just expect of follow kind how couple then

the Peter, Hi Yes. thanks for question.

discussed XX we've patients types on lung just previously, cancer, neck design head the investigating esophageal to each that are So and recap, the three the squamous solid non-small three cohorts cell And of types, involved tumor expansion also cohort. I and reported previously think gastroesophageal guided as enrollment the in we've we're tumor cancers. that also junction of as previously, we've and

so, each of completed reported, goal each. cohorts And patients we've in in is as those enrollment the XX the we've

gastroesophageal report end of on by cohort esophageal fully year, the and We junction mature. for track to data the an enrolled are the to the continues update along for

the kind they're far? data Just the they going are of by discussions AbbVie? encouraged so curious Are how viewing on product? the How with

expansions. about the expansion data next We've this having to or co-development is AbbVie phase, structured, for And be is Phase the relationship, be expansion steps is ran at next the Just the back is stage be is we into go in alliance, them deal global to Phase and running coming X conversations next We the phase AbbVie, really then studies. That's run expansion We'll the registrational move this with to updated recap in which to can say contract X. program. with has assessed. potential way run And that run the the this scheduled the months -- a that per the steps what the a phase. data CytomX point. the asset whether next will formal

And then we types on data enrollment focusing up and you'll how - is on? see much could data when that end kind finally what Got do tumor how just going? XXX, you. think of X And Phase you

be to in with Yes, clinic this we're thrilled program. the

engager and many, this a EGFR-positive in we the mentioned I As is tumors, remarks, of has target combination CytomX you my moved prepared EGFR/CDX are think there studies, into cell ton first the know. clinical T that as in has of which potential

stepwise expansion. potent the We think generally recognized recommended the is is assess - get - escalation. these assess further in are in Phase in to very goal as X stages the firstly of field, dose in carefully of dose X modalities safety to with to early a fashion And Phase study X I a

updates. of comment So good we're data any this timing making ready We're progress. to point at early not on

I'll thank back get Okay, queue. you. in the

moment one for Thank our next you. question. you, Thank

from Etzer is floor Capital line Markets. yours. Our question of comes from BMO Darout next the The

thanks Great, taking the question. for

on sort of data set. one upcoming Just CX-XXXX the

for And PFS non-small we lung in highlighted third duration in You've is I study, response, should in efficacy guess efficacy benchmarks think population? success and durability you. guess, sufficient, of line sort squamous I the about guess, that this mind cell your how for plus what I Thank XX% for advancement. that similar longer cancer.

Etzer. question, the for thanks Yes,

into you guidance cohort. patients I'll at the about been the pretty the year to RPXD. XX rate regarding response And refer the the So our first previously XX.X% has consistent. lung in study ago, made reported a We comments we've enrolled

post in benchmarks line this in in study, the at and been setting inhibitor setting. the the we've look you checkpoint third If

responses can - high single-digits looking some that into chemo the the in in to You're at be cases, double-digits.

asset I their We past therapeutic this out how a with to have that discussion this of put as partners subject would - rate fitting and XX% interest. in response see landscape. the would of into course, to pipeline our is be they overall all mean,

of we late-line an duration again, this months six of setting. would accomplishment four terms response, of response see in In being to

data we the this as see coming in months. what analyze we'll we So, get

thank Great, you.

You're very welcome.

for moment question. for Thank our you One waiting. next

comes Our yours. The Mizuho next Group. floor Mara of question Goldstein from is

much. Hey CX-XXX. excuse on very me Thanks ask I to wanted

with development early that. leading You're

And Astellas happen set? having sort achievement so of any advancing mechanics what from there's how should as on timing Amgen that MTD? will perspective, has that also data I'm curious to the And curious I'm is anything perspective? Like what a to of this from we at? from about And And data point? between if on look an think from at it a relationship visibility

the a is very to ship. action traction the in way similar First,

would So and we The having, phase. with to running comes development And commercially XXX again, the said, program Amgen it's We're later-stage go the opportunity back for after for Phase per CytomX back to expansion similar United U.S. participate a our it's structure as to Xb contract be program. XXXX. ready an as co-development do X States. relationship global in a to and that I global significant Phase registration

profile So disclosed or like deal. clinic this the that. as triggers on information in cell said, T at point, this X they That's the we're highly the - we cohorts. typical to provided haven't guidance I additional initially what and Phase setting thrilled for be regarding agent of over but those And characterizing are not mechanics that's engagers focused several the the any we're safety expansion in with

Okay and then on Astellas?

yes, T doing with space. more a a lot not the engager to them lot to we're of there, regard cell work Astellas, say With on

about say focused that T engagers. Astellas lot not As strategy, time. to central more know, IO is whole that deal at cell can It's you in this I a

you. thank Okay,

welcome. You're

question. One you. moment next our for Thank

floor Kapoor Wainwright. comes the from Mitchell The yours. of with H.C. is Our next question line

questions. the you for Hi, taking thank

how about Royalty you Firstly, at EpCAM data How I data? program data data? on prior Thank now that you. learnings forward well? as from to other the the EpCAM targeted if that could what you ADC derisks with And [ph]. reported the recently think preclinical some ask differently are that path key does wanted comment separately, just about then from And therapy do this

Yes, the question. Mitch, for thanks

So program. about super excited we're this

for number towards know. this, for interested XXXX ADC attractive as moving that some And make very clinic. which a disclosed World time, a at We as features, the been believe, we you in have of we the key EpCAM program candidate quite

let's all, First of focus the on target.

as and be an the has the been I'll out, anti-EpCAM to target. which to efficacious you for Sesen past clinical actually EpCAM toxin from cancer. activity point studied protein, in bladder in non-muscle fusion very clear shown data So in their rightly point, example, invasive Bio showed

Now systemic to delivered of drug, toxicity that instilled needed and because its be locally.

of great significant is and infusion for toxin cannot tumor toxicity. how regressions lead normal engagement can to an So present epithelial Why it's tumor its delivered due most to for toxin regressions. systemically target because on it's tissues. a But a proof be infusion not? concept case Well, very also with study anti-EpCAM how a EpCAM

an to CDX needs of toxicity. ago, there's been sorry, be delivered systemic some which that I'm also previously - application years EpCAM approved also bispecific So its because of was level an through high local

range cleavable for we've the we window experimental having this by and effect. With to Trodelvy target of spent settled on lot the candidate. think a inhibitors this of bistandard comes as in. other the in target, the with on potential ADC, thinking a enormous optimal wide payload Topo-X drug for a validated tumor The So to time offers the linker payload, expression types, the is which an where We tissue. We is create agents of exemplified the Topo-X of high-level for masking inhibitor validated. an as validation it, the camptothecin what's across tumor EpCAM-targeted and combination about to activity HERX, increasing regard a need clinic strategy optimize therapeutic

payload - camptothecin few validated, the target I the we XXXX. would into into IND and being pushing the the clinic say previously look inhibitor, the last in that distilled Topo-X to overall and So being this really forward to the learnings from years

how the end? wonder And Great, restructuring - expect includes operating thank to your can just expenses financial question around trend after I we you. X

Thanks on in give And into substantially is question. guidance burn to XXXX. way where were just we expected this Mitch, we restructuring, year-end. But to Yes. Chris. don't terms We be our be for projected plan of the guidance phasing. the complete to reiterate by cash

OpEx are just I at If just the that about in basis remind quarter. million restructuring you on expenses an you're this quarter, looking in there would base $X those. accrued There's the

you out, back sequential nice see you if a even So decline.

not progress, guiding this at So making but quarter-to-quarter point.

you, appreciate I thank really it. Perfect,

Sure.

next Thank you. question. One for moment our

question comes Piper. Catanzaro Joe next from from Our

here. interferon look I an as there me maybe then on of to the have the of Maybe sort to just data and whether at I'm that typical Great, historical still point to quick to time earlier alpha, thanks shown responsive you alpha? could taking still if that that's there ones seek tumor I'm think see the update, And and two regards indications with a you'd praluzatamab if CX-XXX wondering for opportunity. this questions been was be year agenda, from alpha and the types partnership. interferon wondering Thanks. that you interferon have with to

the Joe, thanks Yes, questions. for

Regarding you're XXXX, right. yes,

discussed do We previously, interest for potentially partner praluzatamab. in Discussions continue finding our we've there. have a -

we cells, harness a action having we activity therapies localizing obviously with kind a full validated ability be a if this with It's tissue. this tumor to With by follows the of regards outlined having excited the a the due as program a ago. update a go-forward potential It's be component what interferon of moments activity molecule. known have San strategy the mechanism I limited toxicities. X Antonio by of super multitude anticancer similar a immune poster both and to combination to be few But toxicities, about into known of XXX, EpCAM to data. will to Phase at to program. alpha effects a We It its powerful we're basis, again, believe central has of can just systemic activate anti-direct also antitumor on to

mechanisms ran the setting, has best comes Merck of XX%. X/X this program similar effective they study but is where of unfortunately, drug incidence, about other tumors, us shown go hematologic are XXX high in with inhibitors. think We in that a to a future in as looking in the saw evidence highly one in KEYTRUDA motivated activity this for forward event, combination solid also and Grade combination from certain our future plenty the interferon that that other potentially clinical adverse to programs filed the tumors, a checkpoint of a on IND with of combination places Some think ORR melanoma we again with They so actually there the of getting saw two wholly-owned new horizon.

thanks taking my question. for Great, so much

My pleasure.

session. time, this Q&A I'd does At your conclude Thank for the to participation in conference. you. This like program. you today's the Thank conclude

now You may disconnect.