PTC Therapeutics Q1 2024 Earnings Call Transcript

Quartr
Provided by Quartr
April 25, 2024

There are 16 speakers on the call.

Operator

Good day, and thank you for standing by. Welcome to PTC's First Quarter 20 24 Financial Results Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded.

Operator

I would now like to hand the conference over to your first speaker today, Jane Hanlon, Associate Director of Investor Relations. Please go ahead.

Speaker 1

Good afternoon, and thank you for joining us today to discuss PTC Therapeutics' Q1 2024 Corporate Update and Financial Results. I am joined today by our Chief Executive Officer, Doctor. Matthew Klein our Chief Business Officer, Eric Powells our Chief Commercial Officer, Kylie O'Keefe and our Chief Financial Officer, Pierre Gravier. Today's call will include forward looking statements based on our current expectations. Please take a moment to review the slide posted on our Investor Relations website in conjunction with the call, which contains our forward looking statements.

Speaker 1

Our actual results could materially differ from these forward looking statements as such statements are subject to risks that can materially and adversely affect our business and results of operations. For a detailed description of applicable risks and uncertainties, we encourage you to review the company's most recent quarterly report on Form 10Q and annual report on Form 10 ks filed with the Securities and Exchange Commission as well as the company's other SEC filings. We will disclose certain non GAAP information during this call. Information regarding our use of GAAP to non GAAP financial measures and a reconciliation of GAAP to non GAAP are available in today's earnings release. With that, let me pass the call over to our CEO, Doctor.

Speaker 1

Matthew Kline. Matt?

Speaker 2

Thank you, Jane. Good afternoon, and thank you all for joining the call. I'm pleased to share with you our Q1 2024 financial results and to provide an update on the progress of our development programs. As we have discussed, 2024 will be a year of execution for PTC with a number of important and value inflecting milestones throughout the year. We are off to a great start with strong revenue and achievement of all of the planned Q1 regulatory and clinical milestones.

Speaker 2

Starting with commercial performance, we had a great quarter, driven by execution across the entire commercial portfolio. 1st quarter revenue totaled $210,000,000 and DMD franchise revenue was $161,000,000 The 1st quarter DMD revenue resulted from our team's efforts to ensure that we optimize revenue during the time that Translarna remains authorized in Europe. At this time, the European Commission has not yet adopted via CHMP opinion to withdraw Translarna authorization and thus we will continue to commercialize Translarna across Europe. Eric and Kiley will provide additional details on our commercial performance shortly. We had a number of important regulatory achievements in the Q1.

Speaker 2

As planned, we submitted the marketing authorization application for sepiaTerra to the EMA and we remain on schedule to submit the NDA for sepia taren no later in Q3. The European MAA submission is an important step towards our planned global launch of sepia Taryn as we bring a potential new standard of care to EKU patients around the globe. As emphasized recently by Lisa Milberg, the Executive Director of the National PKU Alliance, the vast majority of PKU patients are not served by the currently available PKU therapies and there is a great deal of enthusiasm in the PKU community for sepia terran based on the data generated to date, including the reported patient experience in diet liberalization. In the Q1, we also submitted the BLA for Apsesia and we aligned with the FDA on an NDA resubmission for Translarna and an NDA submission for vitequinone for treatment of Friedreich ataxia. The NDA resubmission for Translarna will be based on the placebo controlled results from Study 41 and data from the STRIDE registry, which confirm long term benefits of Translarna in slowing time to loss of ambulation.

Speaker 2

We expect to submit the NDA in mid-twenty 24. The vatiquinone NDA will include results from the 72 week placebo controlled portion of the MOVE FA trial along with data from those trials long term open label extension. We expect to submit this NDA in late 2024. Turning to our development programs, we plan to share interim results from the PIVOT HD study of PTC-five eighteen in Huntington's disease patients in the 2nd quarter. This data update will include 12 month biomarker and clinical results from the initial cohort of approximately 30 subjects on whom we shared data last summer.

Speaker 2

Specifically, we will share data on blood huntingtin protein lowering, CSF mutant huntingtin protein lowering, volumetric MRI changes and FL levels as well as data on several clinical scores including the total motor score, total functional capacity and CUH DRS. These 12 month data will allow us to understand the longer term safety and tolerability profile of PTC-five eighteen as well as to identify favorable early signals of CNS activity on disease biomarkers or clinical endpoints. The 2nd quarter update will also include 12 week results for a larger number of Stage 2 and Stage 3 subjects, including blood huntingtin protein changes. Lastly, we completed enrollment in the CARDINAL registration directed trial of eutreloxostat in ALS patients and remain on schedule to report top line results in the Q4 of this year. Eutreloxostat is the first compound being developed for ALS that specifically targets ferroptosis, a pathway of oxidative stress and cell death demonstrated to be highly relevant to ALS pathology.

Speaker 2

Given the recent changes in the therapeutic landscape for ALS, positive results from the CARDINAL study could enable eutreloxostat to address the significant unmet need of ALS patients. In closing, I am proud of our team's execution in the Q1. We achieved all of our planned objectives and remain on schedule to achieve the many important expected milestones in 2024. I will now turn the call over to Eric and Kiley to discuss

Speaker 3

our commercial performance. Eric? Thanks, Matt. Our global customer facing team has kicked off 2024 on a strong footing and has delivered $178,000,000 in revenue for our 5 marketed products. Our team is focused on growth as well as diversification within our current commercial portfolio and on executing the launch preparations for UPSTAYZA in the U.

Speaker 3

S. And for Cepiaterin globally. Our global DMD franchise had a robust quarter, while our geographic expansion continues to progress in Latin America and the Middle East and North Africa, and our future growth markets in the Asia Pacific region. We delivered revenue of $161,000,000 which resulted from our strategies to continue to maximize Translarna revenue in Europe and to successfully protect the Emflaza business in the U. S.

Speaker 3

For Translarna, we achieved $104,000,000 in revenue this quarter. The team continued to work to ensure that Translarna patients in Europe continued to receive treatment. Evaluations of local country pathways and named patient sales for continued access to treatment are ongoing. Now turning to Emflaza. Quarterly net revenue was $57,000,000 which reflects our strategy to protect the brand in the face of initial generic entry.

Speaker 3

Robust Emflaza sales were driven by continued brand loyalty from health care providers and patients with a significant number of new patient starts on Emflaza. We continue to work closely with health care providers, payers, specialty pharmacies and advocacy groups to reinforce the benefits and the value of Emflaza, while reemphasizing our exclusivity for 2 to 5 year old DMD patients. Now, I will ask Kiley to update the progress of our current and future new product launches. Kiley? Thanks, Eric.

Speaker 4

We continue to plan for our global launch of sebuterin following the recent submission of the MAA in the EU and the planned NDA submission to the FDA later this year, as well as additional regulatory submissions in Brazil and Japan in 2024. As Lisa Milberg, the Executive Director of the National PKU Alliance recently stated, there is a significant unmet need for PKU patients. Is widespread recognition amongst metabolic specialists, geneticists, dietitians and PKU patients of the potential of sepiaterin to meet these significant unmet needs. As we saw for numerous patients in the APHINITY trial, classical PKU patients as well as those unresponsive to and poorly controlled on Kuvan could potentially do significantly better on sepiaterin. Importantly, we continue to see durability of treatment effect and the ability for patients on sepia terin to increase their dietary protein intake beyond the recommended daily allowance, while still maintaining control of phenylalanine levels in the ongoing affinity long term extension study.

Speaker 4

PKU patient advocacy groups around the world have shared that PKU patients have been waiting for a therapy like sepiotarin that combines efficacy through fee reduction and a potential ability to liberalize their incredibly burdensome fee restricted diet to improve their quality of life. We continue to believe in the potential $1,000,000,000 plus global opportunity. Now turning to UPTHASA, the 1st and only approved gene therapy infused directly into the brain where we continue to see transformative results. As Matt mentioned, we submitted our BLA to the FDA in March and launch preparations in the U. S.

Speaker 4

Are well underway and the customer facing team is incredibly excited to bring this much needed treatment to AADC patients in the U. S. In Europe, we treated new patients in France and the UK as well as treating new cross border patients in the quarter. In February, data from the GT002 study was presented at the ISPMB Congress that showed significant uptake of CSF, HVA and F DOPA after 8 weeks after administration of UPSTASA translating into dopamine production and improvements in common symptoms such as hypertonia. Globally, patient identification, treatment center readiness and access and reimbursement discussions continue to advance as we prepare for additional filings and regulatory approvals.

Speaker 4

Moving to TEGSEDI and WAYLIVRA in Latin America. We continue to make excellent progress across this franchise with growth in both patients identified and patients treated across the region. In Brazil, we completed delivery of a new group purchase order for WAYLIVRA and anticipate receiving a group purchase order for TEGSEDI shortly. Our strategy for geographical expansion continues with additional regulatory filings planned and approvals anticipated for both products. In conclusion, coming off a robust Q1, we have set a strong trajectory for 2024 and are well positioned to continue to deliver and diversify our portfolio across our geographies as well as to execute our global launch strategies for sepia terran and UBSAZA.

Speaker 4

I will now turn the call over to Pierre for a financial update. Pierre?

Speaker 5

Thank you, Kylie. I'll now share the financial highlights of our Q1 of 2024. Please refer to the earnings press release issued this afternoon for additional details. Beginning with top line results. Total revenue for the Q1 was $210,000,000 including DMD franchise revenue of $161,000,000 Starting with the DMD franchise.

Speaker 5

Translarna net product revenue in the quarter was $104,000,000 while Emflaza net product revenue of $57,000,000 Moving to SVT. 1st quarter global revenue of about US400 $1,000,000 was achieved by Roche, earning royalty revenue of $31,000,000 for PTT. Non GAAP R and D expense was $107,000,000 for the Q1 of 2024, excluding $9,000,000 in non cash stock based compensation expense compared to $180,000,000 for the Q1 of 2023, excluding $15,000,000 in non cash stock based compensation expense. The year over year reduction in R and D expenses reflects our strategic portfolio prioritization as the company continues to focus its resources on its differentiated high potential R and D programs. Non GAAP SG and A expense was $64,000,000 for the Q1 of 2024, excluding $9,000,000 in non cash stock based compensation expense compared to $73,000,000 for the Q1 of 2023, excluding $14,000,000 in non cash stock based compensation expense.

Speaker 5

This expense reduction reflects lower employee costs as a result of the reduction in the workforce. Cash, cash equivalents and marketable securities totaled $885,000,000 as of March 31, 2024, compared to $877,000,000 as of December 31, 2023. The strong balance sheet provides PTC with the resources to execute on our strategy and to achieve our milestones over the next several years, including the anticipated sepiotarin launch. And I will now turn the call over to the operator for Q and A. Operator?

Operator

Thank Our first question comes from the line of Kristian Clusto with Cantor Fitzgerald. Your line is now open.

Speaker 6

Hi, everyone. Thanks for taking the question. On PKU, I know you've gone at lanes multiple times with us talking about the 6 segments of where the highest unmet need remains. But I'm wondering initially if you think there's a specific market segment where you'll see uptake being the strongest. So one thing we weren't appreciating that our checks are suggesting is patients under 18, for example, is a really critical market.

Speaker 2

Kristen, thank you very much for the question. We have talked a lot about how the strong data set, both from AFFINITY as well as from the long term extension, including the futolerance data really position us well to address all of those key market segments. And that's why we really see this as such a large opportunity. And we talked about it easily being a $1,000,000,000 plus opportunity. I'll let Haile go into a little bit more detail about what we see as sort of the initial segments that we're positioned to penetrate.

Speaker 4

Yes. Thanks, Matt, and thanks, I think as Matt highlighted, there truly is an opportunity across all the different segments. And I think in the near term, immediately post launch, I think we are going to be looking at a number of key segments to penetrate quickly. I think one of the opportunities as we've talked about in the past is therapy naive. So that includes patients that are classic that have classical PKU, high unmet medical need, also those that have previously failed on Kuvan and those that are poorly controlled.

Speaker 4

And I think we've also talked about Kristen in the past as KOLs have highlighted, we heard Anja Muntau highlight this on the deep dive we did last year. But since then, we've heard a number of other KOLs also highlight this. The importance of even those on Kuvan that could have a deeper reduction in fee levels because that really means something to patients and their ability to be able to deepen that fee reduction allows them to look at potentially liberalizing their diet and that's truly important. So it's hard to sort of pinpoint a particular segment, but we will be looking at sort of those key segments in the near term and that's why we believe we're able to achieve

Speaker 7

the $1,000,000,000

Speaker 6

Okay. Thanks. And I remember at your deep dive, you had a nice map that talked about some of the key regions and where there's already patients identified that either don't respond to one of the available therapies or for whatever other reasons they were available. But I'm wondering what work you've done around Europe as well as Japan and Brazil as you think about those filings and upcoming decisions?

Speaker 4

Yes, absolutely. We've done consistent work across all the different regions. As we've talked about, we have existing commercial infrastructure in place and those teams are ready to go. So they're out there, they're visiting the treatment centers of excellence, they're getting to know the patient communities and upon launch they'll be ready to execute upon those patient segments. So we have similar information that's being collected across all of the different markets And that's what we're also collecting.

Speaker 4

But in addition to that, there's a substantial market pool. So there's people coming to PTC gearing up and wanting the drug. So it's coming from both directions.

Speaker 6

Thank you.

Speaker 4

Thanks, Kristen.

Operator

Thank you. One moment for our next question, please. Our next question comes from the line of Eric Joseph with JPMorgan. Your line is now open.

Speaker 8

Hi, good evening. Thanks for taking the questions. Just picking up on your opening comments on the pending European Commission decision for Translarna. I guess we were expecting a potential update earlier in the month. Do you have any visibility as to when the EC might come due with this decision and whether they're perhaps reconsidering CHMP's recommendation in light of perhaps regulatory progress with FDA?

Speaker 8

And then maybe just following up on that, if Translarna remains authorized, how should we be thinking about sequential performance in the second quarter to the extent you saw sort of advanced pull through last quarter? Thank you.

Speaker 2

Thank you very much for the questions, Eric. You highlighted the obvious, right? With the CHMP opinion in January, typically it would be 67 days following that opinion that the European Commission would adopt that opinion and TransAlta would have been withdrawn. That has not happened. We remain fully authorized, as we talked about, it's in business as usual in terms of commercializing Translarna in Europe.

Speaker 2

We have been notified by the commission that they would be leading this week to discuss the matter in a live meeting. Obviously, we're in a little bit of an unprecedented actually, a lot of an unprecedented situation here. But considering that Translarna has a strong data record of efficacy and safety and considering the significant unmet medical need for nonsense mutation patients in Europe are transarterly withdrawn. The tremendous outcry from the patient and physician community, it may not be that surprising that commission is looking at this very closely. Obviously, we'll wait further update until we hear, we'll continue again to make Translarna available to as many patients as possible.

Speaker 2

And our teams are working to do that And we look forward to the opportunity to continue to bring the therapy to patients as long as we can. And in terms of your second question, which was on what we see in terms of impact to revenue, look, revenue performance in the Q1 was expected based on what we've talked about, based on the fact that we said for Translarna in Europe, it would be business as usual, while it was authorized. As Eric mentioned on the call, we had a number of strategies in place in the U. S. To protect the brand and protect Emflaza and protect that business.

Speaker 2

Those strategies will continue. The efforts for Translarna will continue through this quarter. And if there's a need to update our revenue guidance, we will.

Speaker 8

Okay, great. Thanks for taking the questions.

Operator

Thank you. One moment for our next question, please. Our next question comes from the line of Kelly Hsieh with Jefferies. Your line is now open.

Speaker 9

Thank you for taking my questions. I'm just curious for the ALS trial, you mentioned MOA of archerloxostat is through inhibiting for reuptosis. Wonder what kind of genetic biomarker associated with for reuptosis in ALS patients? And do you expect more prominent treatment outcome in subgroup of ALS patients?

Speaker 2

Kelly, thank you very much for the question. Theroptosis is a pathway, a relatively recently described pathway as inflammation, cell stress and cell death, that is increasingly being linked to neurodegenerative diseases, including ALS. And what is important about this is it's not related to any specific genetic nephropathy. It's really a common response pathway in ALS. And that's why our trial with useloxostat has enrolled both genetic and idiopathic ALS patients.

Speaker 2

So this is one advantage of this approach is that we're targeting a pathway common to any genetic or non genetic cause of ALS.

Operator

Okay. Thank you. Thank you. One moment for our next question please. Our next question comes from the line of Sami Corwin with William Blair.

Operator

Your line is now open.

Speaker 4

Hey guys, thanks for taking my question and congrats on the quarter. I was wondering if you could provide any additional color on how much the EU contributed to Translarna revenue this quarter? And then have you heard any feedback from U. S. Physicians, patients, etcetera on their perception of the Translarna and vatikwinone data and kind of what their view of what the commercial potential might be in the U.

Speaker 4

S? Thanks. Yes.

Speaker 2

Fannie, thank you very much for the questions. I'll just make a brief comment and then I'll turn it over to Kyle to give a little bit more detail. Certainly on your second question, there's given the unmet need for non solicitation DMD patients in the U. S. And what's known about Translarna, a number of patients have been on Translarna for years, there's a great amount of anticipation to the potential availability of Translarna with an FDA approval.

Speaker 2

And similarly for vatiquinone, for pediatric patients, there's a significant remaining unmet need. And it's not well appreciated in the physician expert community as well as the patient community that the data that we've collected in Move FA demonstrating that important significant effect in upright stability and what that means in terms of delaying time and loss of ambulation is incredibly meaningful for patients. And therefore, there really is a significant amount of interest for vatiguinal in the FA community. Kyna, I'll turn it over to you for more color on revenues.

Speaker 4

Yes. Thanks, Matt, and thanks, Sami, for the question. I think starting with your first question, Sami, around the contribution from European revenue for Translarna, it's pretty consistent with the Q1 of last year. We've shared that it represents around 45% of total revenue and it's pretty consistent when you look at Q1 of this year to Q1 of last year. So as Matt said earlier in his comments, the plan going into the quarter was to continue to ensure patients have access to Translarna while it remains on the market.

Speaker 4

And I think the team has done an incredible job in executing upon that plan. So contribution is about consistent. Jumping to your second question around Translarna in the U. S. And perception there and also vaticinone in FA.

Speaker 4

I think what Matt said is absolutely accurate. I think starting with Translarna, there's still nothing available for nonsense mutation DMD patients. And so there's high unmet medical need there. And then when you look at FA, there's nothing available for pediatric patients. And I think physicians are starting to get to understand how Skyclaris fits into the marketplace in the older patients and there's still a place for vitequinone in those older patients as well.

Speaker 4

So across the board, we've seen very positive feedback. Physicians are very well versed on Translarna in the U. S. As Matt said, there's a number of patients that are on the drug. And then as we're engaging with the community on FA, there's positive feedback coming there too.

Speaker 1

Great. Thank you.

Operator

Thank you. One moment for our next question please. Our next question comes from the line of Joseph Fung with TD Cowen. Your line is now open.

Speaker 10

Hi there. Good afternoon. Thank you for taking my questions. Maybe on the Huntington study, it looks like maybe this might be the first time we're really committing to some of those functional measures, the TMS, TFC and CU HDRS. Maybe what are your expectations for efficacy on those points?

Speaker 10

Is the follow-up time that we're seeing in the Q2 data going to be long enough to show benefit on these measures do you think or how should we interpret those data when we see them? And maybe second question just on the AADC gene therapy. Can you talk a little bit about reimbursement progress in Europe and maybe what are you learning there that you can apply to the U. S? Thanks.

Speaker 2

Thanks for the questions, Joe. We are very much looking forward to the HD data readout later in the Q2. As we talked about, this will be our opportunity to share 12 month data from that initial group of patients on whom we shared 12 week data last summer. And this will allow us to, for the first time, get a glimpse at PNF biomarker effect, including Huntington protein levels in the CSF, NFL levels, brain volumes, and as you pointed out, clinical scales, looking at the total motor score, CHBRS and total functional capacity. I think from our standpoint, a home run on the data would be to be able to see continued safety and tolerability after 12 months and then be able to see some signal of CNS activity, whether that's on biomarkers or on any of the clinical scale.

Speaker 2

And given the small number of patients, I think we're really looking for a signal or a trend here, given the duration 12 months. And then again, we said this is approximately 30 patients. Patients. And so that's how we're really looking at success here. Safety, tolerability and plus signal either on biomarker and our clinical studies that we're having CNS activity in patients.

Speaker 2

And let me turn it over to Kylie, do you want to get some more color on AUC reimbursement and how that's setting the stage for the U. S?

Speaker 4

Yes, absolutely. So we continue to see progress with pricing and reimbursement negotiations across Europe, and we've continued to have favorable agreements come into place and we'll be shortly treating patients in those additional countries. As we talked about in the quarter, we treated additional patients in France, in the UK and additional patients in through cross border healthcare. And so that's continued success in this space. If you talk about learnings and how we sort of think to the U.

Speaker 4

S. Market, I think one of the things that we've walked away with from some of these discussions is there's a recognition of high unmet need in AATC and with the absence of standard of care from a disease modifying point of view, there's no treatments available. There's a recognition of a ultra orphan condition and therefore small budget impact and a recognition of the transformative results that come with the treatment of UPSTASER. And so put together, this allows us to be able to move forward with favorable pricing and reimbursement negotiations and we do expect that to carry across into the U. S.

Speaker 4

Upon launch.

Speaker 2

Great. Thank you very much.

Speaker 4

Thanks, Joe.

Operator

Thank you. One moment for our next question please. Our next question will come from the line of Brian Abrahams with RBC. Your line is now open.

Speaker 7

Hi, this is Joe in for Brian. Thanks for taking the question. So back on Translarna, can you talk more about the buying pattern you're seeing for Translarna in Europe in recent weeks? If European Commission does decide to follow CHMP opinion, are you seeing anything on the ground that might suggest that the withdrawal from the channels may be more gradual or on the opposite side even more rapid than you're expecting? Thanks.

Speaker 2

Yes. Thanks for the questions, Joe. Look, we are seeing, as I said, really business as usual. Their prescriptions and numbers are really unchanged here. And it goes without saying that the patients and the physicians want to take advantage of every day that Translarna is on the market and we expect that fully to continue to be the case.

Speaker 2

Our teams, as Tali pointed out, are focused on ensuring that happens, that we're ensuring that patients have access to therapy. Of course, we've also been working in the background to put mechanisms in place to leverage mechanisms that might be available on a country by country basis to continue to provide Translarna in the event that the EC Commission adopts the opinion TransAlta is withdrawn.

Speaker 7

Got it. Thank you. If I could squeeze in one more, are you scheduled to meet with the FDA regarding the option filing anytime soon? Just wondering if you'll get a visibility on whether you can file in parallel to the carcinogen study or not? Thank you.

Speaker 2

Yes. We had Joe, we had the pre NDA meeting last year with the agency last fall and it was very clear that every other part of the package is there and in place, that safety and efficacy data would support our NDA and support approval on review. And the one outstanding matter was the completion of that carcinogenicity study. We mentioned that we expect that study to be done in June. We don't expect to have a formal meeting with the agency.

Speaker 2

We did say that we plan to contact them to discuss timing of the submission relative to the completion of that study. We've said that we still remain on track to submit in Q3, but we can maybe bring that in a little earlier into Q2 based on that correspondence. But we don't expect that will be a formal meeting.

Speaker 7

Got it. Thank you, Matt.

Operator

Thank you. One moment for our next question. Our next question comes from the line of Gena Wang with Barclays. Your line is now open.

Speaker 11

Thank you. I just have a very quick question. The first one is regarding Translarna Europe status. Based on your discussion with EMA, when do you expect Translarna will be withdrawn in Europe? And then second question is regarding subparity in PKU.

Speaker 11

I think you mentioned that you wanted to target initial patient population that could be one part is a classical PTU. Can you help us understand how our understanding that the septarium is a precursor of a cofactor and a classic PKU usually does not have any selalynine hydroxylase. So basically does not have an enzyme like how would the cepitarium will be helpful in class PKU patient population?

Speaker 2

Thank you for the questions, Gina. As we've discussed regarding your first question on the status of Translarna in Europe, the following the opinion in January, typically the European Commission would have adopted that opinion within 67 days. Clearly, we're sitting here late in April of The opinion has not occurred. We had been notified that the commission was planning to meet this week to discuss the matter. And I assume they're taking into consideration the current status in Europe, the lack of alternative therapies for patients with nonsense mutation DMD, the data which supports safety and efficacy of Translarna and the outpouring of support for the authorization remaining intact from the patient and physician community across Europe.

Speaker 2

So I think they're looking at the matter closely. We expect to have an update in the near future. And as we said, until that time, it's going to be business as usual. We're using every day to continue to ensure that patients have access to Translarna. On your second question regarding classical PT, I think there's sometimes a misunderstanding.

Speaker 2

It's the definition of classical PKU is basically patients, children or adults who at some point in their life have a documented phenylalanine level of greater than 1200 micromolar per liter. Now that could be at any point in time, it could then be lower if they get on to diet control. A very small number of those patients have what's called homozygous null mutation. That means they have on both alleles a null mutation that prevents them from having phenylalanine hydroxylase enzyme. But that is a very small minority of patients.

Speaker 2

And therefore, the remainder of the classical PKU patients have functional enzyme. Obviously, it's severely affected by the mutation and has low function. Cepiaterin is as you pointed out a precursor of VH4, which is the cofactor for the enzyme. It also has a second function, which is a chaperone function, which stabilizes the confirmation of the PAH enzyme. And therefore, we believe that's why we're seeing what we've seen in classical PKU patients in our studies, which is a significant effect.

Speaker 2

In fact, in the INFINITY trial in the subset of classical PKU patients, we had a mean phenylalanine reduction of 69%. That was actually a greater magnitude of reduction than was observed in the overall population. So it certainly signifies that cetiaterin can play an important role for these patients. Similarly, as we've included we've seen patients go into the open label extension and participate in the tolerance protocol, we are seeing classical PKU patients that is defined as classical PKU patients being able to liberalize their diet and maintain control of phenylalanine. So all of that really speaks to the importance of seeking care and the potentially really important role to have for all patients with PKU including those classical patients, who are tend to be the most severe.

Operator

Thank you. One moment for our next question. Our next question comes from the line of Jeff Hung with Morgan Stanley. Your line is now open.

Speaker 2

Thanks for taking my questions. For cepiaptern, can you just remind us of the data collected in patients under 2 years old? And are there plans or timelines for starting that? And then given the meaningful effects on bloodphenol and what would you give you confidence for results translating to those younger patients? Thanks.

Speaker 2

Thanks, Jeff. We did include patients under 2 in the APHINITY study. Now they went through the initial run-in phase and we had patients who had a greater than 30% reduction in the run-in phase, but the regulatory authorities wanted them those very young patients not to be randomized, but to go directly into the open label extension study. So we have patients who started in AFFINITY who are under 2 and we've actually had additional patients that we've enrolled directly into long term extension. So we're getting data in a number of patients under the age of 2.

Speaker 2

And what we're seeing is exactly what we're seeing in patients over the age of 2. We're seeing safety and tolerability and also efficacy in terms of reducing phenylalanine. So again, the data continue to support the potential benefit of sepia apparent in the full range of PKU patients, both classical and non classical and then patients of all ages. Great. Thank you.

Operator

Thank you. One moment for our next question, please. Our next question comes from the line of Joseph Schwartz with Leerink Partners. Your line is now

Speaker 12

open. Hi, everyone. This is Jenny on for Joe. Thank you for taking our question. Was wondering if you could just talk a little bit more about the 4Q readout for ALS.

Speaker 12

I think you said in the past that the study could be registrational. Can you give us an idea of what regulators would be looking for to support that? And can you kind of give us some insight into what a clinically meaningful change in ALS functional rating scale would be? Thank you.

Speaker 2

Yes. Katy, thank you very much for the call for the question rather. So we are we designed the CARDINAL study to be, as you said, registration directed in this team from our feedback with FDA, both in terms of relation of the study being roughly 6 month study, placebo control and the endpoint strategy having the primary endpoint being the ALSFRS scale. We would define success here as a statistically significant benefit on the primary endpoint, which on the ALSFRS scale that has traditionally been the threshold for agency approval. We powered the study to have what we believe would be a clinically meaningful effect, which is roughly 2.5 point difference between the treatment and the placebo group.

Speaker 2

And we've designed the study to be well powered to detect that. So we believe if we're able to have statistical significance on the ALSFRS, we also of course have secondary endpoints capturing other important aspects of the disease, including mortality, including respiratory function, where we, of course, will look for supportive data of that ALSFRS scale, we believe that would position us to advance euteloxetab for approval in the U. S.

Speaker 12

Great. Thank you.

Operator

Thank you. One moment for our next question please. Our next question comes from the line of David Leibowitz with Citi. Your line is now open.

Speaker 2

Thank you very much for taking my question. To this point, have you really significantly felt the presence of generic Emflaza or of recently approved of the Lamar loan? David, thank you very much for the question. As we talked a bit about on the call, we've put a lot of strategies in place to preserve the Emflaza market eating the face to genetic competition. I can let Tayo there talk a little bit more about what we're seeing

Speaker 5

in terms of dynamics. Yes, absolutely.

Speaker 4

I think David, the answer the quick answer to that is no. And I think that's a testament to the strategy that the team has put in place to protect the business. And as we said in the Q1, they've been executing upon that. I think what's really been a strong message for us is the continued new patient starts and we've seen an incredibly large number of new patient starts in the Q1. And I think that's a testament to the loyalty to Emflaza and the continued benefit seen by both patients and physicians.

Speaker 2

Thanks for taking my question.

Speaker 4

Thanks, David.

Operator

Thank you. One moment for our next question, please. Our next question comes from the line of Danielle Brill with Raymond James. Your line is now open.

Speaker 13

Hi, guys. Debbie, thanks for taking our questions. I have two brief ones. First to clarify on Translarna status in the EU. Is it possible that the delay in the EC ratification of the CHMP opinion is procedural or was this meeting this week specifically called because the EC is considering not ratifying the decision?

Speaker 13

And then on my the second question is about the significant on sadness in the EMA. I believe EMA feedback on the feasibility of a conditional approval was expected in 1Q. Any updates on that front? Thank you.

Speaker 2

Yes. Thanks, Danielle, for the questions. On your first question, the typical procedure is 67 days. Usually, this is done by writing. It's usually written agreements across the member states and that then allows for the ratification by the EC.

Speaker 2

That procedure we know was paused, instead a live meeting was called for discussion. What the exact nature of that discussion was, what motivated that discussion, we can't say. What we can say is the typical EC adoption occurs within 67 days, but clearly beyond that time point. It's typically a written procedure. They're having a lot of meetings.

Speaker 2

So there's a lot of things that are going on now that are really atypical. What that means in terms of the ultimate EC decision whether to adopt the opinion, send the matter back to the CHMP, whatever they decide. We can't say. What we can say is we're far beyond what we had expected and what was typically observed and the procedure has not gone according to what typically happens. In terms of your question regarding vikitinib, we had previously shared that we had gotten feedback from the EMA from we had gone through the scientific advice procedure.

Speaker 2

They did not indicate that they thought that the MOVE FA study could support conditional authorization at this time. We're looking forward to further discussions with them. And of course, on the FDA side, we have a different experience where after we had that recently meeting with the FDA in Q1, we are moving forward with the NDA based on the MOVE FA study as well as open label extension data, but from the older study performed a few years back as well as from the MOVE FA long term open label extension.

Speaker 13

Thank you for the clarification.

Operator

Thank you. One moment for our next question please. Our next question comes from the line of Tazeem Ahmad with Bank of America. Your line is now open.

Speaker 12

Hi, guys. Thanks so much

Speaker 14

for taking my question. One on FA,

Speaker 12

can you just talk to

Speaker 14

us about the patient population, different it might be in the U. S. Versus EU in terms of sizing? And then secondly, for Huntington, based on the conversations that you've been having so far with the agency, what's your level of confidence that a biomarker can be used at least as an endpoint, maybe not the sole endpoint? Is that topic have been brought up in recent discussions?

Speaker 14

Thanks.

Speaker 2

Thank you very much for the question, Cazeem. In terms of populations for FA, it's roughly similar size population prevalence in the U. S. And in Europe. Clearly, in the in both territories, there's nothing indicated for patients under the age of 16.

Speaker 2

And we talked a lot about how the data from Move FA really supports the important treatment affecting that population with regard to delay in time of loss of ambulation. And obviously that has applicability beyond just the under 16 year old patients, the effects we observed in upper art stability relevant to all ambulatory patients with Friedreich Catastia. So populations roughly the same size, we see an ability to fill the unmet need in the pediatric population, but also potentially having important effects for all ambulatory patients regardless of their age. I believe your second question was on biomarker and HD as an endpoint. Is that correct?

Speaker 13

Yes, that's right.

Speaker 2

Okay. So the we have not had discussions yet with the agency regarding biomarker accelerated pathways and biomarkers role in the endpoint strategy. I think we've clearly seen that the agency is predictive neurology division has been looking to leverage the accelerated approval pathway for nerve degenerative diseases like Huntington's disease, like Alzheimer's disease, where collecting that definitive efficacy data in a Phase 3 trial takes many, many years. I think the challenge we have in key of course is there's no precedent yet for what that accelerated approval biomarker would be. We believe that the PIVOT HD study offers several important bio markers including peripheral Huntington lowering, particularly with a systemically administered drug.

Speaker 2

And obviously, we've talked a bit about the potential for NfL levels, which has been used in the case of Tafersen for ALS and then also things like Huntington protein, the CSF. So what we plan to do is collect data and begin to have discussions with the agency once we have data in hand of what a pathway using biomarker data or what would be as you asked the role of biomarker data in establishing the efficacy of the therapy for Huntington's disease. But we think there certainly should be an appetite just based on the agency's recent activity.

Operator

Okay. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Paul Choi with Goldman Sachs.

Operator

Your line is now open.

Speaker 15

Good afternoon and thank you for taking my questions. I have 2 and my first is just with regard to the CARDINALS trial and ALS. In the wake of the recent PHOENIX study results from Amlyx, have you either implemented or contemplated any study design changes or changes to the statistical plan just based on the recent Pfenex results and just what your thoughts are there? And then second, just a follow-up also as well on PIVOT HD and PTC-five eighteen. Can you maybe just comment on the with regard to your regulatory discussions just on the safety side for U.

Speaker 15

S. Sites and any progress that may have been made there? Thank you for taking my questions.

Speaker 2

Thank you very much, Paul, for the questions. Your first question regarding cardinals, when we the FDA has been quite clear on what they want to see in terms of analytical approaches for the ALSFRS. They're very interested in understanding changes in score as a continuous variable. They've also been interested in understanding mortality and the time to mortality. And specifically, they've talked about wanting to understand the difference in scores between treatment and placebo and then also implementing something called a joint rank test, which is a way of analyzing together both the change in ARFFRS score as well as patients who may have died and the information about their timing of death following enrollment.

Speaker 2

So we've of course taken the agency's guidance to ensure that our analysis plan was consistent with what they want to see. And that doesn't change with anything regarding the phenix study. We work closely with the agency in designing the study to ensure that it would be registration directed and ensuring that we have the appropriate analysis plan, so that when we get the results, if they're positive, that we'd be well positioned to advance the drug towards approval. Regarding your question on safety data from PIVOT HD and discussions with the agency, As we prepare for the Q2 data disclosure, we will then have the safety data that the agency has asked to review in order to lift the partial hold. So we look forward to submitting those data to the agency when available.

Speaker 2

Just as a reminder, they had asked us following the last data review of 12 week data to provide them a 6 month data on the sufficient number of subjects that would confirm what we've seen at 12 weeks. So clearly, we're going to be in a position to provide the agency not only 6 month data, but 12 month data on a number of patients. And as we've shared, we're continuing to see the drug to be well tolerated. So we look forward to putting that data package together, submitting it to the agency and hopefully to lifting a partial whole room in the near

Speaker 15

future. Great. Thanks for taking my questions.

Operator

Thank you. And at this time, I'm showing no further questions. I'd like to hand the conference back to Doctor. Matthew Klein for closing remarks.

Speaker 2

Well, thank you all for joining the call today. Clearly, we're very excited about the outstanding performance in the Q1, both in terms of revenue and the execution across all of our programs. We are well positioned to continue this success throughout the remainder of the year and look forward to updating you all as we move forward. So thank you all and have a good evening.

Operator

This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.

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Key Takeaways

  • PTC reported Q1 total revenue of $210 million, driven by its DMD franchise which generated $161 million through optimized Translarna and Emflaza sales in Europe and the U.S.
  • The company submitted a marketing authorization application for sepiaTerra to the EMA and remains on track to file its NDA by Q3 2024, while also aligning with the FDA on NDA resubmissions for Translarna and a new filing for vatiquinone in Friedreich ataxia.
  • PTC will share 12-month biomarker and clinical results from its PIVOT HD study of PTC-518 in Huntington’s disease in Q2 and expects top-line CARDINAL trial results for eutreloxostat in ALS by Q4.
  • Commercial revenue of $178 million across five marketed products underscores strong execution, with ongoing geographic expansion in Latin America, MENA, and Asia-Pacific, plus launch preparations for UPSTAYZA in the U.S. and sepiaTerra globally.
  • Non-GAAP R&D and SG&A expenses declined year-over-year, and the company ended the quarter with $885 million in cash, cash equivalents, and marketable securities to fund upcoming launches and milestones.
AI Generated. May Contain Errors.
Earnings Conference Call
PTC Therapeutics Q1 2024
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