EQRx (EQRX) 9 May 232023 Q1 Earnings call transcript

Good afternoon and welcome to the EQRx First Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that this conference call is being recorded.

I would now like to turn the call over to Michelle Greenblatt, Head of Investor Relations.

Thank you, operator and good afternoon, everyone. Earlier this afternoon, we issued a press release providing an overview of our first quarter 2023 financial results and our recent corporate progress. release on presentation of the at this call accompany our of investors.eqrx.com. available are Investor copy and to the this website A Relations section

Executive are on Eric Dr. Physician Nallicheri, call me Chief Principal today Joining President, Officer; the Hedrick, Chief Officer Executive. and and Financial Melanie

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

any disclaims such forward-looking to these undue not on cautioned statements. obligation are any place You reliance EQRx to and statements update

will to turn Melanie. the I call over now

Good everyone our and for for us call. joining conference quarter first you, afternoon, Thank thank you Michelle.

For Slide Today, announced those slides, reset on along a EQRx. X. for we begin will of you I following on the

and differentiated we is to drug our make a high-value Going developing long-term of impact will although for billion, build skills patients position value $X.X strong To on will and we forward, execution team do this, focus hunters, shareholders. medicines. experienced clinically leverage of significant to capital meaningful

our could Lerociclib medicine. opportunity pipeline, CDKX/X along into of return and Our to our from an some new point CDKX/X class for that expand and be of exciting which combinations clinical data potential for inhibitor, with this is to early-stage strong has financial early additional lerociclib, inhibition its programs. first compelling build indications an oncology with starting

which this from recurrent lerociclib, in we development hear cancer Phase excellent metastatic low-grade Eric first-line advanced or on initiating with to make including III a first the continue indication. trial shortly, Phase of inhibitor progress endometrial you'll study we in believe our is As the III CDKX/X

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Specifically, taking we following outlined the as Slide are X. actions on

We non-small for we use review First, company inhibitor. with cell partnerships world. applications for United by commercialization Britain is under our existing for to Kingdom's the around aumolertinib authorization positioned EGFR believe aumolertinib the license Union-wide the commercial EMA for license. in an a are lung aumolertinib, to treatment effectively third-generation Marketing seeking EGFR for better deliver mutated European infrastructure cancer patients of both remain MHRA the a Great and a

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collectively, cash $XXX savings to forward. in annualized spend. and I to best that This actions at have us we us capital outlined go-forward the enabling move significantly will expect million, allows our the We amplify generate least puts lower the us to of position have

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that for critical future. them we demonstrated and us strong our pick strategy, can $X.X advance a in go-forward cash, the and assets position and our along puts have which billion we for in with targets Importantly

of turn lerociclib. over now who call of will status the current talk I to about Eric, will development our the

sensitive other adverse best-in-class and patients of expressing CDKX/X contrast from the begin turn data dosed would as acceptably in is patients afford abemaciclib, in that lerociclib a within a comparatively GI scheduled reminder continuously rates lerociclib ribociclib the X, to with an scheduled when profile with for Please lerociclib in without class, and ease appears detailed variety advantages trials. possible agents potential advantages to associated tolerability Slide administration toxicities, such low these be interruption inhibition defined administered XXX studies low Melanie. on of Thus, lerociclib contrast cancer been clinical receptor of Slide CDKX/X to with may The have with can potential generated in that clearly neutropenia. diarrhea. profile of has palbociclib demonstrate hormone tumors. combinability X. In inhibitor event breast I than rates of which to like interruption without Thanks, to clinical treated more of and

pursuing CDKX/X Turning combinations plan the a We established to indications Slide CDKX/X example agents indication has hormone cancers. while inhibition endometrial novel been be an advanced responsive earlier late-stage remains but lerociclib metastatic X. novel is continue further need One of sensitive unmet of in inhibitors, to pursue ways. cancer. plan which of We area in variety in to development to with to studies for of an or

a initiated have letrozole combination low-grade with trial III to first-line metastatic cancer. for placebo multiregional of evaluate advanced clinical the We or in with endometrial patients letrozole compared treatment to lerociclib Phase

In safety foundation therapy enabled are positive of cancer. nearing provides in breast completion hormone addition, II in lerociclib Phase receptor open-label the first-and we of in future with lerociclib enrollment endocrine novel with second-line trial profile. by potentially differentiated development advanced trial This the for its our standard combinations multiregional combination in

closing the Melanie Melanie? to turn will back update for I that, With call and a financial remarks.

X. included financial results our first of file to in will that XXXX our be which we the More found this turn release quarter Please Eric. issued A details you, later Slide today. XX-Q be in we summary will afternoon. can Thank press

I in As versus billion cash, $XXX operating earlier, a Total spend with investments. million for highlighted accounted ago. we our XX% R&D advance we $XX period million to equivalents $X.X as of this approximately the expenses year and our expenses same portfolio. short-term for ended quarter of cash first XXXX continue were the quarter

months for the was Our of year. this X million $XX cash first burn

approximately cash, operations less cash XXXX position $XX for termination workforce. approximately investment costs in used reduction in or related to of and including million the $XXX costs and to down, billion. nonrecurring XXXX, portfolio cash We wind million estimate year-end be equivalents decisions to exit our for announced million short-term expect to be $XX and We $X.X

provides the collective actions the outlined several be to As and will significantly acquisition XXXX pipeline. additional spend savings of driven basis. generate flexibility cash savings costs at our year Key today, by indications. million This I derived and and expect a earlier, additional of removal we least stated to from we support capital full annualized lower $XXX of our including on the product pursuit financial programs

Now your questions, conclude before would for with Slide the we open on like the I to X. following call

resetting EQRx. We are

high-value patients build to and necessary Our medicines developing the shareholder make on believe drug capabilities value. drug is execution expertise, strategy. to new on of development impact an focus and deliver have scale for and capital differentiated this we We hunting clinically

cash grow forward combined sharing with about the of up billion our portfolio. progress significantly freedom current plan look burn organization our go-forward our lower cash expected to in will degrees have $X.X more which, future. we Our and a position plans to as We when of opens

all now to like back would operator call turn I listening. the you the to Q&A. for to Thank start the

line Instructions] question the comes Sachs. [Operator with of from Shibutani Chris our And Goldman first

of And ongoing? Obviously, might decisiveness in in when contemplate thinking remarks that for the anything difficult for potential ask. just Can a as kind home capital very time about as over could assets if for frame you may for but X, Number strategies lines you product us framed you necessary number X particular, be characterize that of additional be can the I there your decisions, aumo your us a tell Can X, that what and thinking give lines possible allocation some about a immune process time regulatory there. you lines and you mentioned there, there? Europe; about about prepared acquisitions. U.K. you're in the is time things, you sense

I'm this tackle And for European X off this to in lines calendar we're U.K. for and in second the hand This Union, the Yes. those is Melanie maybe decisions first going Eric in year. this anticipating aumolertinib of parts. to terms applications Hedrick. on the the time regulatory of and part year,

it. of off let me then and the rest for to -- So hand Melanie

Yes.

I&I we into assets to these we are exciting are it on want They it capital And originally an entity. or potential the to said These I few of opportunities. a the very wholly assets, just really that own. clinic I believe we're nearing that So going which ago. requires time, what we reemphasize over the then identify for maximize to and to are putting minutes entity are hence, focus initially going and

have dedication want the I is to that There trimming sure of Capital it's billion this of And and cash it third then, extremely lot and a capital of down, want your so is scale with this trading if to the our of served below of are want companies that scale on question, to -- what is you call are to quarter there portfolios. highlight have there expensive the it's become best do the a we side, a valuable. field. their this end we out that And has we're yes, we way that a of so product on time are cash. lot to just that by this with are people trying $X.X acquisition burn process, bringing capital make with that as when

puts something we that together an in that so position interesting that, going an just to is interesting us portfolio. believe be to And put

Chris, we're come, more this how thinking in to about on the that's So would future. it. say I

And Instructions] [Operator our comes Schott line the of JPMorgan. from with question next Chris

Chris. This is for Ekaterina [ph] on

can lerociclib, on and bring for just lines adjuvant time question remind is how the you a your on quickly you so market? question, potential And the on thoughts to opportunity. of asset kind lines us time first So latest second can the

the that additional broadly for that today, study So running maybe potentially given the not this financial in tied flexibility a adjuvant thinking does some is does how thinking doing you change recently announced and of development your out that you're change Novartis asset. study setting? you've that some have opportunity that, about And that more about to the read only then of path

Eric. is this Ekaterina, Yes.

sometime at In study possible frame. looking just on endometrial that's of with Phase our approval, and the focused result for seeking again, is lerociclib terms a III initiated it and a positive program time we'll approval XXXX with lines time has that be in that cancer,

Your opportunity. question adjuvant the about

to I it do believe opportunities that. think would make that the setting additional pursue lerociclib. indications evaluating realistic adjuvant to other approach a sense But there some one that is are don't for for defined believe we taking where I we're conventionally in sort breast on the we're discussion hormone in near able And a opportunities, of the cancer lieu pursue that breast may of some in we bigger cancer having time receptor future. setting of to those be adjuvant. positive the setting, think I planning us

thinking are Eric ability first-in-indication is the generally, we've opportunities to liabilities the The much talked keep Ekaterina, Trupanea it in to that It the shared lerociclib is we how doesn't in have it for in today, just profile, said. neither core because just nor the metastatic GI that like its endometrial us so want information allows I we what to that about continuously have mind cancer Yes, profile about, that which has a take emphasize we the new [ph] dose. one class liabilities toxicities. with tolerability to

to of amount we very to really sure information in-depth is say, it that we'll going have are so simply we'll we just and we a backbone in go. more a that combinations, put back and triplets today, future is for good the that's future come whether believe would given doublets conversation, Ekaterina. out the And I make those here But or where that the

question of [Operator line from TD Instructions] the with comes our next And Stephen Cowen. Scala

am since its Buyers Apologies away the differentiated on new in strategy, is that's but similar following previously most I The had pivot making today the develop since news that progress to has some no Club said it some news is to Buyers drugs. not abandoning lerociclib I that you're so EQRx which been some strategy you from to the progress. the clear other previously U.S., not sounds pivoted guess company OUS the were made drugs developing are you today. longer be recent differentiated. And which and Club had appeared

versus old I'm me, for hard path have to that And and missing been high one? So on confidence it's in the the has respect, the or due can this for last new given so. year strategy clarify company the you all with what

in in Let reiterate we we a know the the that received the me path for our going trials. a to that feedback today first FDA filings United lot a about number just from talked we sugemalimab November, I want letter we that is we really after a moment late-stage as that or remind forward you're have the multiple And of review, just We company. right, for that about of, talked important States. the especially under have on. everybody company,

partnerships. different XX under just have We

the as we're today that describing execute And brought thoughtful that so us and reset to be a today. well to and one Steve, has such we wanted

the our trimming portfolio to today. the we're fit strategy. to here around does want With going I the just everything regards that question what are we essentially focus forward, go-forward doing not reiterate saying from We're

medicines. the past, to the saying today, of that focus only medicines been we're around in to assets And there's high-value pivot retaining we confusion and were X clarity some and we forward. starting differentiated on some are think differentiated I focus going creating still [ph] going the

the approved want following, be ability thought point Perhaps something actually the to was going Club for drugs the Global But the I say proud we be your to all last around everybody focus them actually both fact you but that happen have to and saw going realize them are was we long-tail both, knew through. need realize going that we've to one we part mission. that to to to groundbreaking, what the where assemble done to might that. world hard. -- of around to has original the very the It's the the just and tried We're something that hardest, think ultimately, clarity Buyers And not Buyers pull sad the hence, but I Club need need us they today is that forward. around we of just X changed might we happened. risks that perhaps we

Akash with the our Tewari next comes Jefferies. And line of from Instructions] [Operator question

Q - Unidentified Analyst

on Akash. Alia [ph] This is for

X actually. have We

billion in second BD a our just looking but likely whether would which by you us related more can leverage RA given cash, rare your on is might strategy? [indiscernible] to refreshed and the negotiated FDA view you partnership. you give and essentially, first $X.X The be can are assets at you pretty is, disease The have consider [ph] be less that it

Eric comments. to if see start and my I'll wants Let then me to add

we've So today put of information out lot is that a there.

I we that detail way are adding. to [ph] really lero reiterate So and to just providing interesting. have and starting we that the with the we're updates exciting is to will brought looking detail and what assemble ability point. the -- talk really in want we believe with more forward in future more our have cash We spend an down, something having we that But

to And portfolio. we're we evolution seeing talk come going going to more how We'll we're that going to how are the so back about the lero develop come firepower, and back with in talk about of and we're detail. also

we field Eric. We're assets believe, novel We're fortunate profile. sort to have in cash cornerstone combinations, Melanie I and towards the is intend that are would opportunities. stated, a as be be in evolves development really its not as lerociclib or be those And opportunities combinations, profile exclusive, a drug think a if We terms add, to indications And to drive consider are Melanie we're interested believe with company point. fields. for that of we good we And position just have Yes. that we didn't But certain we disease is stated cash assets say to see this is in And And the to we before. position. centered there having would starting around exclusively a important. think of I going forward. we lerociclib. that rare what with might that of afforded expertise worthy those are I going

to more later sure, And this. come on

this today's you now Ladies you. and Thank Thank gentlemen, conference disconnect. for participating may you and call. concludes