Celyad Oncology (CLYYF) 5 Aug 222022 Q2 Earnings call transcript

Greetings and welcome to the Celyad Oncology First Half 2022 Financial Results. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder this conference is being recorded. I would now like to turn the conference over to your host, Sara Zelkovic, Director of Communications & Investor Relations for Celyad Oncology. Thank you.

begin. may You

for all today. Thank joining you us

Litigation we today's event I of securities Private like XXXX. within would that everyone applicable Securities the including remind to laws, Act may meaning of Before the begin, Reform contain statements forward-looking

be annual can and involve such and XXXX and performance the risks may those condition, in XX-F risks and achievements other expressed materially the and forward-looking from of Securities list and uncertainties, the or Forward-looking March and cause known risks, uncertainties, of results, by actual statements. statements with U.S. A found description Exchange reports and reports, company's these XX, filed unknown may filings on SEC differ including implied report filings subsequent Commission financial or in its which company by The to forward-looking expressly or statements These this from and only the the differ unless regulations. of such by actual which implied in obligation forward-looking these call or those to call thereto regard as events, on company materially date statements results disclaims law by is change this change in statements. may with expectations any of company's statement based, such or any to circumstances update expressed the company. its any conditions speak forward-looking reflect on required or any made any on

is Lussier, Executive Officer Chief yours. to of interim now Michel, me Michel call Oncology. the the Let floor over turn Celyad

you, everyone, first operational XXXX. thank joining half and and the results our Sara you, for results today call Thank for us for update financial of

Finance and Medical committee our our Georges. Morris; Officer, Charlie from and today executive David the Chief me is Administration, Joining Vice President of Dr. team

financials next today of operational expect months. by an the start of over followed the the update, and several will clinical outline, an milestones key we overview company with and We

will your open then line the questions. We for

the the has clinical in leadership terms half company first of change of there in year. So, the the many to been and candidates

very Filippo CEO, I month in I've the thank years. to other dearly the to contributions Importantly, for broad must to our seek I we Oncology Petti, transition And previous opportunities. taken Interim June a over down Celyad past who say to past his CEO. want goodbye smooth had over stepped as we've over Filippo and say

be for because have Chairman are CEO guidance. begun a been to forward on We for will look has and the also person board to our Board in to number new as announce of years now industry a Hilde biotech our I helm. work under Windels. European-based is continuing She to Directors of the the take of Chair the named that Belgium. Board and member we search Board stepped headquarters the a down happy CEO and prominent of targeting helm our European in her Hilde We're a Directors our has

our his underpinned on field the approach CAR I’ll CAR David T of thank also and towards significant of shRNA work In our this Head almost as addition, David opportunities. Chief takes has Officer felt David was transition been company he Eytan continue over T our in for shRNA Dr. to efforts of platform R&D our Scientific to other the Breman, allogeneic the Dr. years Gilham, and former shifted eight natural we R&D our seek new therapies technology. also discovery a as reshaping programs. with timing resigned by

drivers company of the months, the look efforts we the So, our to we've potential the months and value maximize business had focusing pillars four major many past years. changes in to all few forward while coming in on of

allogeneic decision research CAR that in we armored and shARC last IL-XX, candidates. treatment for an for will this make discovery developing ideal especially NKGXD leverage treating the the We Our We will the IL-XX are microenvironment, solid this did release CAR year or potency to expression CAR April in that to products of efforts. first platform. I opportunity that allogeneic treat core is focused which unique although and providing challenges making CAR to Ts receptor programs pillar to the focus note development want multiple candidates, armored the Currently, our NKGXD stop related armored shRNA tumor platform impacting development CAR CAR introduced is drive including we're could diseases solid T therapy platform our overcome progress cell difficult on of IL-XX Main to of tumors. research T T our expiration increased franchise. our of the shRNA-based our important on T and this the utilize engineered for think and to of by the be promising CYAD-XXX, backup T local tumors.

to in cars responses work for this safety to July, getting people hold that product received hard tested technology pipeline, our and in of back from TIM cancer other the be. they should timely lifted, to proud dedication many time end the pillar, the thank candidates our as is providing team significant potential to their be opportunities targeting priority T using with get candidates excited on they FDA year as candidate CAR to our where to of clinical our trials. our are we're to Moving our we had using a TIM for are biggest this Patient trials put challenges the track milestone and the next and I'd this our are the quickly to CYAD-XXX. that development continues and allogeneic company CYAD-XXX and FDA NKGXD we've our hold happy safely to that clinical the related have announce order very to This At take like lifting investigational and notification technology. on we're and possible.

and technology candidates IMMUNICY for benefits we'll world generating been both for share we're shRNA month setting. dose proprietary one been the and opportunity non-gene truly the this real CYAD-XXX has and about clinical differentiated the invaluable enrollment to enrolled with year. patient drive editing portion addition, great of in with that immunity offers our IMMUNICY-X solid us escalation In believe tumors excited technology steady has to We of hematological Trial malignancies. data per an a this for way showcase we're

third underutilized been been – driver that pillar has and landscape. The a so our unique company within property has and our intellectual far underutilized CAR value to T the relates the

for around patents with licensing to develop U.S. program avenue of T outside company based NKGXD these partner to parties own therapies around an Our and patents. allogeneic therapy and CAR provides its the the

strategy can is manufacturing for to a see, last expertise. we opportunity our the are a licenses. additional focus finally, pillar significant This And leverage in-house potential We renewed planning a strategic renewed of been as leverage the overall investment opportunities the the and we of asset within past has business. are [indiscernible] for great facility a evaluating how our us we currently on strategy over further decade

Officer call and Chief to the Morris, Medical detail. So, let Charlie? here Charlie me Dr. provide over stop our to more turn

and Michel you, thank again Thank for everyone you joining today. us

Michel updates several pipeline part just first As to the have of related we discussed, XXXX. in our

is candidate Of TIM, Let's our December and anti-PD-X clinical to company KEYNOTE-BXX CYAD-XXX Celyad’s in mCRC using note, otherwise CYAD-XXX trial CYAD-XXX-XXX, the completed with first-in-class edited XXXX, for the signaling or investigational of the TCR the known complex. trial. to TIM zeta turn date. repair-proficient disease, native immunotherapies began last as phase the NKGXD difficult the co-expresses CYAD-XXX microsatellite-stable CDX followed KEYTRUDA a the patients in We inhibitory previous first And Xb by non-gene trial This refractory with therapy alloSHRINK technology. molecule evaluating year. – from CYAD-XXX is reducing only receptor called TCR that interferes clinical novel which candidate the indication Merck's mismatch

Michel accepted of states on trial. nine antibodies patients we mentioned, metastases prior by clinical history the FDA within suggested recruitment to has As of that trial. will previously The exclude hold were FDA this the that bilateral anti-EGFR lifted amendments we that just with the months lung the and put

We the in with of technologies. use proprietary our our unique are continuing edited evaluate research along NKGXD non-gene to receptors

that from IMMUNICY-X Our expression and data the to deeper of CAR CDXζ tolerability blood, preconditioning Phase although of has CYAD-XXX the cyclophosphamide BCMA and allogeneic in CAR shRNA, trial, engineered durable escalation infusion CYAD-XXX following CYAD-XXX Initial potential These more clinical co-express complex. portion the dose which of maximize and the engraftment refractory detectable suggest single the cells which peripheral candidate is a I cells. a lasting. short of of the all had activity with fludarabine, CyFlu, CYAD-XXX, patients IMMUNICY-X is component interferes patients currently a T first-in-class second with trial lymphodepletion and single in X the showed with myeloma. is findings relapsed a engraftment evaluating date persistence Phase multiple of targeting been the and may in TCR to and evaluates the

to and of for enhancement an improving follows IMMUNICY-X clinical with maximize potentially of aim activity the expansion depletion segment current and of cell the our Now, the regimen persistence CYAD-XXX.

increased protocol, within dose CYAD-XXX In responses. the drive – help addition, we of also are IMMUNICY beneficial which clinical additional clinically beneficial might evaluating

our made this to plan for progress, approaches to way other half with lead For truly us benefit shRNA in data the during developing potential the XXXX. technology previous that help of our clinical also clinical candidates. technology therapies additional is cancer. particularly treatment in share feel of we current second We and over great and the We've in trial, a allogeneic space innovative

targeting of franchise. of into the how our its and shARC VP immunoevasion let continued potential potential [indiscernible] platform, serve a have leverage over the turn Georges. and research We that, our call the as efforts to backbone With expand David proprietary multiplexing our shRNA using to for Finance, me including to best to dynamic

Charlie. you, Thank

financials, full remind in Celyad both our and on to languages. English website Turning I like details just that you the Oncology available to French would all financial

to to XXXX, was KEYNOTE first to period half quarter expenses, Xb, to administrative strengthen half were expenses compensated development and been million activities, first employees for first insurance in CYAD-XXX-XXX €X.X maintenance the the of ended also Net June €X.X of clinical which fees XXXX. during the General six-months property movements clinical increase of million employees compared with property the and for was through with and of driven of the XXXX. of increase half XXXX. million, increase XXXX. the for related of costs net for research by second €X.X the hold a XX, has XXXX expenses order and an for to filing and was mainly to the increase This XXXX. income the compared €XX combined movement other €XX.X income for employees XXXX million associated the first the XXXX, programs. The million decrease of €X.X of XXXX, the the employee half and increase The were to million €X.X increase of support million compared to trial, free half by first due first prosecution intellectual clinical of intellectual partly by group's mainly year expenses Phase Our of was mainly with related of on half the clinical

net period for loss net the of was for of €XX.X or order with in loss half grant per to half operations share, cash XXXX. million the Net [of] as €XX.X XXXX million €XX.X income first Walloon was amounted [ph] half of of same for million for XXXX €XX.X half first XXXX. the compared XXXX of the associated or the for received €X.XX a [ph] first share the first Our in to from used the €X.X Net per compared million. Region million [€X.XX] with

or company XX, $XX of a million €XX.X June had of XXXX, As treasury the million. position approximately

total the outstanding for Michel As that, XX XX.X is of the which With XXXX, call million, situation back of of I to December June to basic now statements. the XXXX. turn closing of XX, number similar were shares will

Thank you, David.

this sense to for strategy focus and So, in forward closing, renewed Celyad looking of Oncology. we're

we're that, by IMMUNICY-X leverage CYAD-XXX a as additional these As for mentioned the expertise, on strategies. additional main drivers I'll coming we X be our reporting current year over clinical endeavors. trial the turn manufacturing include whole pipeline additional look our and with program candidates, and the announcements property thoughts over strategy exploring data on further company. year value We to these make for using questions. to over end call These months four Operator? We months. the coming portfolio, topics will for examining the of the way R&D our to our the Phase clinical all the intellectual we hope and execute possible your regarding forward previously, our of pillars And provide as

first question Our Blair. with Raju Thank you. of Instructions] with [Operator line question. from William your proceed the Please comes Prasad

hold? exclusion Thanks criteria EGFR know Thanks. for question. taking the the an to the lead behind for the nine up Curious reasoning clinical as taking in therapies months on

Raj. Yes. Hi,

So, to six history – [ph] past around the away. one patients of the – [anti-EGFR-X] both exposure who months a about of had of have

if seen we should So, as within have who been six who use we that other we felt treated months not obviously like a take patients had months, having had takes a if you because But had effects. half-lives five and baseline weeks. time, you about then [indiscernible], six severe adverse months baseline washout of we conservative, for six to of out of XX example, sort

So, months. you're then out to nine about

that are And what IP. Thanks. around Can development there you little looking products partnering little on bit Would much and potentially patents? licensing IP mentioned a great. us more How the be out Okay, you business give that color partner? strategy or assets? Would to a that? of be you is

is those, IP of able portfolio partners and from other developed to broad be or to to answer have and Raj shRNA, internally, up organically beneficial of all a with. Celyad. short also will And patents to very for licensing this the thanks benefit lot mutually at the that patients from So, be we We're a our come and patents treated allogeneic any NKGXD, above. industry of through is, wish to ranging having situation

Thank Great. you.

[Operator Instructions] Thank Thank you. you.

your of question line Please Fargo. McCall] comes with with Wells next the [Reid [ph] from proceed Our question.

Hi, thank for here you're Thank Reid Can more you the color Nick. sharing any on my expand with question. trying and this This you taking proceed is help that in to provide for space? you. manufacture on

that. when not be and you available. get not in a facility companies happy even Yes, [indiscernible] do Well, Celyad Good could ago very because previously afternoon cell Reid. was early have it and engaged for therapy, years stage if difficult back got it basically, I'd was to GMP to

CAR the that major fully the recently has at And to integrated underutilized we've clinical in took therapy of, cell point more to and been and our past past, a in cardiac of studies when in a be of [rent] come in we're both were resources that through space. have field we companies other T of space. helpful the timing So, the the having very GMP with example, periods where the history because our take we endeavor for some [ph] facility in

also we we now an So, entering in are in where have a may capacity. manufacturing phase our overcapacity

so, And to the other have have projects. we chance

we well. under this well of number this development now. capacity benefit what available of to as the others So, and are can operandi is other But our make the manufacturing as all to QA exact there modus making right a is technologies great unit, ways to as that of trained personnel

Great. Thank you.

pleasure. My

concludes the to comments. any question-and-answer Thank you. Ladies gentlemen, and this session. I'll final our Mr. Lussier turn for floor back

thank innovative needs steadfast interest speaking you. Thank patients joining in bring Celyad all And to soon. forward your mission today I'd our to you, again operator. therapies to T remain in and to we're everyone novel and looking for us Oncology. Thank CAR We medical you unmet to like with cancer and

conference. today's Thank concludes you. This

at this lines Thank participation. disconnect time. your You your may you for