Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ultimovacs ASA (FRA:7UM, Financial) has successfully enrolled 28 patients in the DVO trial in the last quarter, indicating good progress.
- The company has extended its cash runway through the first quarter of 2026, demonstrating effective financial management.
- Ultimovacs ASA is actively working on a novel drug conjugation technology platform, with updates expected by the end of 2024.
- The company has implemented cash preservation initiatives, including organizational downsizing, to optimize financial resources.
- R&D expenses have decreased due to the completion of several clinical trials, which will further reduce operating expenses moving forward.
Negative Points
- The focus trial in head and neck cancer yielded disappointing results, highlighting challenges in treating this difficult cancer type.
- Recruitment for the lung v trial in lung cancer was stopped due to a slow rate of patient enrollment.
- The company reported an operating loss of minus $29 million knoc for the third quarter and minus $103 million knoc year-to-date.
- Negative cash flow remains a concern, with the third quarter operating cash flow at approximately minus $42 million.
- Payroll expenses are significantly influenced by fluctuating share option costs, adding variability to financial results.
Q & A Highlights
Q: Can you provide an update on the clinical trials, particularly the DVO and LV trials?
A: Jens Bjørheim, Chief Medical Officer, explained that the DVO trial, which targets BRCA negative ovarian cancer, is actively recruiting and has enrolled 148 out of 184 patients. The readout is expected in the first half of 2025. The LV trial in non-small cell lung cancer has stopped recruitment due to slow enrollment, with 31 patients included. Results for these patients will also be available in the first half of 2025.
Q: What are the financial highlights for the third quarter of 2024?
A: Hans Vassgård Eid, Chief Financial Officer, reported a total cash holding of $131 million NOK (approximately $12 million USD). The operating profit was minus $29 million NOK for the quarter. Cash preservation initiatives have extended the cash runway through the first quarter of 2026.
Q: How is the company managing its expenses and cash flow?
A: Hans Vassgård Eid noted that R&D expenses have decreased as many clinical trials have concluded. Operating expenses are expected to reduce further due to cash preservation initiatives and workforce reductions. The negative cash flow is anticipated to decrease significantly as these measures take effect.
Q: What is the status of the novel drug conjugation technology platform?
A: Jens Bjørheim stated that preclinical proof of concept studies are ongoing. The technology aims to expand the vaccine pipeline by combining different molecules for various indications. An update on this platform will be provided by the end of 2024.
Q: What are the future expectations for the company's clinical programs?
A: Carlos Sousa, CEO, mentioned that the company is on track with its milestones and expects to provide more detailed updates on the drug conjugation technology and clinical trial results in the first half of 2025. The team is focused on delivering results on time despite the challenges in cancer biology.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
