EQRx (EQRX) 14 Aug 222022 Q2 Earnings call transcript

Good day. And thank you for standing by. Welcome to the EQRx Q2 2022 Earnings Conference Call. At this time, all participants in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. advised conference be being Please instructions] that is today's recorded. [Operator the now to like I'd conference to And Mr. hand over today, your speaker Swami, Relations. Neil Investor of Head Mr. Swami, please go ahead.

website a everyone. operator accompany second our this investors.eqrx.com. presentation on copy financial at recent available today, good of you, our XXXX providing the morning, call and section progress. Thank we overview are and quarter of issued investor to corporate press results of this release an and our Earlier relations A release

Joining Officer; Financial are Chief Chief Dr. me this Nallicheri, Melanie morning Hedrick, on the Jami call President and Physician Eric Officer, Executive Executive. Chief Rubin, and

those various in Before could outlined differ with most result to from Actual and that other other the those remind include results as SEC make the we forward-looking the on like that statements, events this expressed statements and future including I we a of get SEC. forth forward-looking would everyone and make Slide that, or filings presented by call X. slide we materially uncertainties, risks, filings any statements with set started, may deck in the as some of implied factors, on recent information our and

to are over statements Melanie. You on turn statements. such to any undue obligation update call these any and reliance not cautioned place forward-looking to disclaimed now EQRx I the will

prescription world. our quarterly foster relevant for the affordable mission; address US call. patients. a pricing innovative innovative, EQRx prices Neil. biomedical everyone. therapies our the we've all week. most innovation, is for conference to and morning, for us And and access investor in systems, the Senate Good This debate increasingly great, you, population for X savings you medicines. competition, with approach and is access importantly, We for Thank health this inequitable advance US approach healthcare level will reminder seen down is drug market-based around thank Slide increase improve provide to to of our legislation create as a reform creating bring believe and joining

the at Our to reflects our quarter progress in advance the we second mission. EQRx all urgency feel

Our toward X. are goals. execution, like away on XXXX you'll We updates, progress you as focused today Slide making remains takeaways, and from see from our we to with would today's call team hyper outlined three key our on come as

continue oncology programs, we Almonertinib sugemalimab our First, commercialization. advance lead approvals regulatory towards and to and

the while with applicability are US We programs population conversations of to support constructive delivering continue. FDA to the data these the

initiated line clinical just for three-arm trial EGFR-mutated the XB lung non-small cancer. Almonertinib our comparative In US-led Phase fact, of first we treatment of cell

for the I'm We milestone in since on such our a Recently, company, time, to important outside plans agency. was founding. marketing execute review This we for period accomplished regulatory incredibly is are short our authorization US. an by proud that a first regulatory application global major of continuing EQRx's and have accepted any this

of Stage XXXX. lung are sugemalimab, anti of the non-small half the during cancer we For PD-LX US outside anticipating IV global antibody, first regulatory for submission cell second our our

quarter our lung at Lung of underscore and presentation for cancer oral data that week's role in We the alongside could late-breaking in the are included on this generating lead the and presenting World and programs Almonertinib Presentations clinical beyond. our treatment of this Cancer. important ASCO play sugemalimab and partners Conference

the lives Understanding we place Memoranda than that turning systems have MOUs now Buyers networks. health of payers million or with within me cover XXX Club; Global Second, our to more in and

pipeline engage We quality continue systems health with the and to model our remains in their interest, in payers and business our strong. of

cash just with billion $X.X quarter and under equivalent. in second the cash ended we Third;

control of hear you about of more more tell our capital this disciplined will use who will about and You Jamie from spent.

cash strong position expect into We a to cash and year runway at XXXX. least have the end with

me Almonertinib discuss Eric? and turn in sugemalimab who Let greater the detail. will Eric, call to now over

will intended Slide of Almonertinib, Melanie. Thank On I EGFR-mutated you, for cell non-small begin X, advanced with cancer. treatment lung with patients

Almonertinib is Almonertinib lower in opening. Pharmaceuticals and XXXX. diarrhea, in benefit which this from profile is and a XB was amongst which profile setting inhibitor, or mutant initiated finding, third trial inhibitors, EGFR Melanie newly of which interest EGFR Phase characterized This trial, with a risk in endpoint mutant selectivity gefitinib, rates and unlicensed a is of shown significantly profile safety mentioned we a improve potentially generation As its selective be In we rash AENEAS the the by unique consistent X reminder, is the Phase progression-free that regulatory to evaluating metabolites. survival, this and Hansoh Almonertinib with the the will of in clinical

the from learn significant ASCO XX% in Almonertinib risk Phase Almonertinib. central an a continue nervous to to Meeting without aspects of the with the AENEAS the At the progression Annual freedom ongoing progression from highway of effective We patients a in June, showing reduction months trial. Almonertinib of eight of of specific to metastasis benefit with gefitinib X our partner, CNS months presented analysis analysis the approximately Hansoh XX prolongation CNS system gefitinib, compared of medium approximately in

Agency, review. We the the they MHRA of The activity is Almonertinib basis is and complete in robust under or and application that as their with our X Medicines of these inhibitors. believe AENEAS paramount, submission metastasis of type CNS and Given served forward EGFR the associated further also regulatory metastasis review from the MHRA. is with morbidity Phase Products frequency by node this impact look we but significant brain quality working the trial other of first currently UK. life the to This in data cancer, as Healthcare lung Regulatory brain profound differentiate

a innovation an designation and opportunity expedited review As an in which agencies reminder, amongst the received provides a review we passport for for have coordinated Almonertinib, UK process.

conditions under the Almonertinib which be the approval regarding what to filed continuing FDA US. be pursue conversations to are constructive for We we believe may with in

of evaluating the a and trial Almonertinib treatment Almonertinib clinical the benefit chemotherapy to initiated line arm As setting. the metastatic US-led first assessing Melanie clinical between comparability potential with clinical in mentioned, addition the osimertinib third study a of we've randomized

As applicability representative will is enrol of population outlined cancer the the study believe current this in of lung the trial in US address Slide X, the results EGFR mutated designed X to on We the to medical a this practice population. patient US. AENEAS patient of Phase

patients these progression-free will with also survival related osimertinib. endpoint of inhibitors, Almonertinib potential an also previously The I such survival, tolerability clearance, Other generation noted, studies risk and to in tumor it anticipated response continue. overall profiles and EGFR of differences measures tumor for XXX HR circulating of this approximately endpoints, as the As for of between rate, survival Details particularly including duration third of profile response, enrol Each in on will DNA differences secondary surrogate objective XXX patients. total primary study benefit Almonertinib response are regards metabolic the two different clinicaltrials.gov. be others. the study posted assess

Point cancer. a Our in combination patients Phase clinical Almonertinib recently lung partner amplification XBX mutant non-small in evaluating trial with cell with MET advanced initiated Turning Therapeutics, EGFR Lenvatinib [ph]

this to China I sugemalimab, discuss from to which trial of monoclonal is and XXXX. EGFR In partner setting expand now study enrolment. in a our turn in in antibody, CStone lung include anti-PD-LX discussions treatment adjuvant to clinical ongoing cancer, we we mutated Pharmaceuticals conducting multiregional Slide addition, are X in-licensed will in Hansoh the our to

third rate disease. late-breaking refractory demonstrating or for XX%. with duration which the the currently approved on This there that sugemalimab Stage World X been ENKTL. This trial week approximately Data relapse trial of Phase across and evaluated of addition the response in in was responses primary CStone, and pivotal X or has Of a an in or endpoint half there on aggressive prognosis non-small was complete survival X patients, lung lung a oral of cancer. conducted chemotherapy a led arm. and particularly based was lymphoma. for agent status. PDLX cell response survival one-year with GEMSTONE-XXX lung of of Conference patients Stage large there pivotal months sugemalimab chemoradiotherapy CStone for the and historically these responses refractory met At Overall the duration were of the analysis after addition Survival regulatory also overall sugemalimab to compelling through study X to this Phase GEMSTONE-XXX Interim cell histologies important As analysis, an was sugemalimab data findings XX X cancer, lymphoma X and pre-specified sugemalimab an ASCO, chemotherapy oral alpha non-small presented independent ASCO, other study a completed the as which with at study, met evaluated two of detective a in exceeding of of patients X.X months updated cancer, partner is disease This patients are and was survival an sugemalimab in of the note, Note is overall cell a expression in of a relapsed improvement now reminder, type ENKTL, tumor NKT studies survival no extranodal of endpoints our featuring response has Phase of ENKTL Phase in which non-Hodgkin's from Stage of is consolidation assessed partner relapse observed disease. by rare that the in GEMSTONE-XXX sugemalimab from in Also the median X overall refractory median in primary at presentation Stage controlled treatments primary presentation to with The benefit X by our of the consideration. one its and

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a body analysis XXXX. presentations evidence of in for treatment sugemalimab interim total, from add settings. survival We in this overall study expect of number cancer growing clinical In an to different the of these

We are in to in an addressing to the our program is that supporting reinforcing need. relapse commitment also unmet US, access ENKTL or in refractory open patients expanded

a expect a To evidence, in further we We in was in submit build are in FDA the as to This or relapse ENKTL inhibitors US XXXX. which of granted lung being US for trial, by checkpoint the the regulatory randomized ENKTL sugemalimab the population clinical to planning compare approved and of designation sugemalimab US-led designed US with a other -- reflecting reminder, study of patient demographic. to current breakthrough body for GEMSTONE-XXX therapy refractory the medical patients, for non-small practice approval applicability will sugemalimab's in of XXXX is US initiate population. address cell immune cancer results to

sugemalimab, regulatory the conversations US. be Melanie. to to we also call approval We're pursue sugemalimab for continuing outside Regarding non-small this second with globe under back we conditions first that, the the filing for regarding year. which processes regarding for for and are With with regulatory Melanie, track I cancer to in in the for the engage of in what be remain cell sugemalimab authorities US submissions constructive around to filed FDA potential various filings believe continuing lung on half will we the turn approval our

Eric. Thanks,

Slide population, programs programs areas to programs, generating cost lead data the to beyond pipeline to building the clinical robust inflammatory the currently applicability support Almonertinib our of US you and in XX stage while as a which and than have are X, Moving clinic see, more we also that multiple advancing are and the can immune sugemalimab. oncology five of diseases. address We some in ongoing highest of

for has X For completed the cancer pipeline, study multi-regional Phase in enrolment. the liver nivolumab our of remainder

we as liver and our Phase X breast JAKX to study investigate our building start atopic remains ongoing cancer in multi-regional in for immunology metastatic Our inflammation plan franchise, dermatitis. we and [ph] inhibitor

data work Our get they clinical approach the partners enables our look closely us are an with to generating. and early at

in generation programs then approach optionality of determine our de-risk advance our team provides a is model, part in and advance helps applies a critical This commercialization regulatory if opportunities should rigorous licensed Our pipeline. our approvals data disciplined which cost-effective business territories. we toward to to and

will Origin. way companies stage recently, provide a an In with sources pipeline capital-efficient to into We the companies, to we to seven addition agreement drug leading signed in-licensing, are believe leading globe. drug across in with continue the of enter which engineering the we with R&D platform our early have of build and we have future. engineering collaborations collaborations now revenue Most

X. turn Slide Let me now to

We so they, they bias trusted, serve into strategic continue to working medicines enter our partnerships make access public payers long-term, club. progress and in health systems private growing with our We're approved. and gain global can the when patients to and to future

is call sign existing working I Jamie QX, that over to MOUs their XX earlier, networks, and cover million we covered to more turn to signed financial agreements. base plan discuss and will to lives converting We with additional to also health towards in our XXX the team alluded MOUs our payers within systems position. I to growing As lives. now million pre-commercialization our lives than MOUs

second We XXXX be file of our this equivalents for morning. period quarter included were filing, million ago. cash, the we later year will in operating in today. press Total the and is $XX XX-Q More ended our XXXX just $X.X can release of billion detail now I that summary with same results Melanie. $XX expenses cash million investments. under second Thanks on financial we quarter a XX, issued found the versus Slide a which short-term in am

our For all note, operating Of R& important cash our months $XX up million million our we total up clinical XX% this six to of million six expenses continue expenses quarter, for support build $XXX the was burn to year, ago. operating as months were across year from D a approximately infrastructure our $XXX stages for advance of our and operations. portfolio, accounted of first the development the first of ramp year. trials the

expect anticipated and be lower While to had we in even trending continue highly burn non-cash as managing million we disciplined or our expenses cash less comp $XXX includes in our XXXX, to expenses, continue operating is than tightly we capital. which

arm milestone. our With three study for major the Almonertinib, a initiation of

For the our sugemalimab, anticipate operating billion year, to year, loaded start the half company, in the $X.X and expect will second for including back study year of the but of with an end in $X.X half the do and we additional a still comparative billion. cash second trials the expenses to we be between

we Given Against our cash capital will position adding cash the a the challenging complete be significant commercial what feel in first pipeline advancing we and very where our least are good activities the development about markets a existing ending to programs backdrop, to we and fortunate the half thoughtfully at very with new anticipated us year year has of enable maintain in strong completed runway in by XXXX. a been selectively strong financial milestones. shape and which programs later year, into grow, portfolio our position, and

would for like moving multiple Now I XX, are Slide to expecting year. to we the the remainder summarize milestones of the

our planned towards the less and during the heard initiation expenses you XXXX. these the add our outside Club As $XXX of sugemalimab sugemalimab continuing Global to operating for managing members additional our an or study call, Buyers comparative for spend million to regulatory US include in submission for

over now me Melanie. turn to Let the back call

the I call take Jami. the of can you, participating in back Thank acknowledge and turn go healthcare and closing, your the we I like would patients ahead operator providers who employees, would thank any are also to around for our to our We Operator? In clinical thank can partners, now like the so support. stockholders trials. and world to over and questions. all

of Nephron from come [Operator question will instructions] Eric Research. Our first Percher

line Your open. is

tandem, it does that commercial expanding running at Could of speak jump commentary was you the and like both I'd the and take in Appreciate time, That's side are is quite by the think on end to, movement you pre-commercial movement million away on to MOU the process from part of MOUs equation. to the the million how both MOU all and doing Club. of pre-commercial the year. that $XXX at $XXX -- to you. Buyers goal? as I as pre-commercial the to start still Thank commercial same a

indeed Melanie. taking the for two is but really question. Eric. This in Thank parallel, not Those you away. they're are running

about it, day like are partners the relationships time. with where these you partnerships working in, meeting If all are our really, teams day out. think are The we

And one very to so work can it's They way other. needs well the actually parallel. not give that, to in

In you really goal. work are we great terms can of of It's this but target, towards would million XXX the XXX as with being I really the very making say, line, lives would and progress the ambitious agree you. end we ambitious goal continue for an million to diligent of I year, the see ahead with

Thank one of on program? is real more access benefit approved, as can and market medicines you. this the topic, and risk authorization pace gauge be you which question have passport, assessment been we quickly and market? on to UK on innovation you And the that once able the being how maybe focus that you're under And

innovation, me really Well clarify an has number And access the innovative approval timeline. a of first including approval pathway stops a me, number and regulatory clock licensing options, different let The accelerated faster. for all could of the a ILAC Eric, different it be of much just pathway. including, benefit that excuse has

one benefit. So that's

technology here. more there is the ILAC benefit assessment approach NICE organizations the both best the include is organization; the as as other partner perhaps is is well regulator, a goal that the coordinated and The MHRA much health that word

processes in be soon timelines possible. access coordinated are so work as parallel, that and that as the can more that enabled two So patients to

sooner. as promise are today, working benchmark actually inner it's market they to that get no a really there's you but So and of

Passport companies first the that have designation. the Innovation amongst are we Well, granted been

both how it say so will has be of actually both with So pleasure through we real in the Almonertinib mentioned, plays it and for to submit to around just review, designation. of medicines been our later as this been that for out. review processes, year. sugemalimab a has data accepted Passport just these and Innovation advance the far to organizations lot a I are there terms And partner of isn't working planning the simply sugemalimab MHRA we Almonertinib have by

Thank for detail. the you

Our Jeffries. from Tiwari will Akash next instructions] of question [Operator come

line is open. Your

Clark for taking Thanks Akash. is for questions. This morning. Good [ph] our on

EU topline [ph] general from head filings? on a clinicaltrials.gov for First, your what when And primary Phase secondly, any data Hodgkin the flexibility noticed due sort on there you there with expect I thoughts your noticed the we read your and MAA discussions XB can to of XXXX, filing? We completion And Thank you. Have Afatinib regulators? across ex-US are Almonertinib's and shifts interim tone earlier generalizability concerns? around with date withdrawing is study? May that any noted readout statistics potential is

Thanks to, Couple This of questions Thanks. comment on it's Eric little the for things, difficult is impossible Yeah. regarding application, HUTCHMED Hedrick. other filings. companies the on decision the to a bit Clark.

will So in about that generalizability indication terms unique in can't is if I of specific. concerns. comment I particularly its each and talking potential say generalizability medication you're

is concerns that think concerns submissions, US HUTCHMED well be And whether, understand led those discussions were really and will applicable. of with now, our drug situation, will to and specific can and lung our be disease right we this about part us, the year. belief the so regulators to about us the in second that so lack difficult and that concerns some we it only having have off cancer we go for for the direct outside thereof discussions filing we're know generalizability pretty we to or its brought generalizability In that,

but having that So we're in feel track. it's think on in specific, hard that comfortable we're discussions I we the comment to

in was around discussion timing and that in I with FDA Phase there our are would think that data US those would the from details endpoints civilianclinicaltrials.gov said, a ongoing. of the Yeah, discussions the question the with the the like US XB process we've supportive and be study. that regarding we're other of of be filing available study nature

Thank so much. Understood. you

Shibutani Chris Goldman Our come from of next question Sachs. will

Your line is open.

follow Thank Two then relating and somewhat to good some up the morning. questions, of broadly one financials. a you. second And more strategic

we're a current much you and question, Plenty could be changes of very perhaps, challenges thinking about you could capitalize your uncertainty I'm etcetera; implications bullish may of pricing, to yet and lot capital on. EQRX, versus both as about talk further drug and of challenges for you uncertainty. could talk categories, you you're molecules areas Thank with On biologics, legislation. think think as that if how therapeutic uncertainties out involved at potential able the then kind frame well And looking is could broader where reform to perhaps potential allocation build present the something of and you about thinking how be There's and you. small bullish of assets, portfolio. that

Melanie. start Thank your add. your with you, and others is Chris. questions or This may I'll take question

systems, say everybody first of think EQXR, the high drug the ways any payers, that to recognized pocket we to would of out certainly improve healthcare access. and costs I ideas debate I about Washington, at in patients, and patient and and with welcome all So different for of both recognize too to reduce we're costs all, course for bring we along for are prices down,

as number of particular, data there's their of that of seniors significant Now, mission that's for in shown seniors the and a burden. not support because out that are filling that lots of there large prescriptions that that including know, our has pocket to core statistics are you

there And remains payers. certainly provisions happen, you of you, and there costs negotiations are I say with is know undesired shifts putting that that approaches. a more So all Chris, instrument, said up always really that I believe consequences. of never welcome like anything we but exactly if lot based it's forward you the We what we all one as law say would ends course will, that, being finely-tuned until the the Having a that solution, still are done. would most market to least

will with. or we're plans on advantage for more phase, put So companies you that the at instance, a same when organizations catastrophic burden of partnered look in coverage participation certainly lot the that increasing Medicare the

continue right relief number would I so to in challenges, that the opportunity say probably three, that to the the With burden. EQXR regards some imagine is for your in I additional would that to uncertainties outs couple will an have like we be such of And orphan be of challenges what drugs ultimately a as that instance there for our the number negotiated. drug a of drugs. We which for will are know around carve that status,

And would the for so the this What on least details, are to the I would asking your will capital say where treatment at portfolio regards then expected partners would say, I implications? be a versus those closely are end benefits investments benefits perhaps are, bring will small clarity the ourselves lead I would molecule bring still and regardless, 'XX, there the some also negotiations, draft is around allocation to up the what those and current just a biologics? 'XX. while we With lot and and company of And drugs same come and both in might greater we also could to that I a that. are being at certainly impact to patients our and not in of until have future that, government devil through potentially from industry the because to on looking say, question certainly regulation to we start there are believe the make not that hoping does really We be, in and going benefit long they're will in any I is will or ways, decisions, where time be make will before questions, long to but where will That's decisions starting very doesn't. in different of say in ask our thing absolutely, negotiated around questions to opportunity us we last EQXR. lot the world the of

XXXX, helpful. I of financials shape and the with a if comments relative quite And you balance was least the bit. trend about and it. follow perhaps guidance. of specific talking now, up there could little question just And modeling to year to Got the the us were about That's prior then until for in spending vocabulary your Jami; this clarifying at and help

'XX. we're We're all a years categorizing about I thinking details great. ahead, be any further think would reaffirming couple

terms Yeah. you perception, you, And for Thank thank in what of saying. Sure. your Chris. we're

So first to year, our to $X.X six And of billion lower to we billion. we cash expect for the between anticipated as end trending months I the than said, burn. with respect had year are $X.X this we

So again, our very, we tightly. overall, are capital managing continuing to very spend

expect so to do to years. several We continue the next over

in point cash. multi years of confidence, we with confident therefore comment going our is we a see just of we to lot So cash the discipline. our reiterate in that language managing capital continue And strong to our are our very feel commit of our to long And to runway.

Thank That's helpful. you.

for like Thank conference call. today's you. And that Thank to now ends all will you the participating. Q&A portion I of this conclude conference.

now day. You pleasant a have disconnect and may