PolyPid Q1 2024 Earnings Call Transcript

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Provided by Quartr
May 8, 2024

There are 5 speakers on the call.

Operator

Thank you all for participating in PolyPete's Q1 2024 Earnings Conference Call. Joining me on the call today will be Deepla Kachkis Axelrad, Chief Executive Officer of Polypede Johnny Misalawan, Polypede's Chief Financial Officer and Ori Orshofsky, Chief Operating Officer, U. S. Of Polypede. Earlier today, Polypede released financial results for the 3 months ended March 31, 2024.

Operator

A copy of the press release is available in the Investors section on the company's website, www. Hollyp.com. I'd like to remind you that on this call, management will make forward looking statements within the meaning of the federal securities laws. For example, management is making forward looking statements when it discusses the expected timing for recruitment, number of centers, top line results from the SHIELD II trial and of the unblinded interim analysis, the planned new drug application submission for DPLEX-one hundred, the strength of the company's intellectual property, the company's expected cash runway and the potential to receive additional funds if warrants are exercised. Forward looking statements are subject to numerous risks and uncertainties, many of which are beyond our control, including the risks described from time to time in our SEC filings.

Operator

Our results may differ materially from those projections. These statements involve material risks and uncertainties that could cause actual results or events to materially differ. Accordingly, you should not place undue reliance on these statements. I encourage you to review the company's filings with the Securities and Exchange Commission, including, without limitation, the company's Form 20 F, which identifies specific factors that may cause actual results or events to differ materially from those described in the forward looking statements. PolyP disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward looking statements, whether because of new information, future events or otherwise.

Operator

This conference call contains time sensitive information and speaks only as of the live broadcast today, May 8, 2024. With the completion of these prepared remarks, it is my pleasure to turn the call over to Dhekla Chachkis Axelrad, CEO of PolyPete. Dhekla?

Speaker 1

Thank you, Brian. On behalf of our team at PolyPete, I would like to welcome everyone to our Q1 2024 earnings conference. We are excited about the substantial momentum throughout our business. Most importantly, as it relates to enrollment in our ongoing SHIELD-two pivotal trial for DIPLEX-one hundred for the prevention of abdominal colorectal surgical site infection. Importantly, this clinical progress is being achieved with a recently fortified balance sheet.

Speaker 1

Let's begin with the status of SHIELD II. I'm pleased to report today that the study has now enrolled more than 200 subjects, and approximately 50 centers are currently open in multiple countries around the world, including the U. S, Germany, Italy, Ireland, Portugal, Hungary and Israel. As a reminder, we intend to conduct an unblinded interim analysis once approximately 400 patients of the planned total of 600 subjects complete the 30 day follow-up, which is expected to occur in mid-twenty 24. Top line results are anticipated in the second half of this year.

Speaker 1

Therefore, SHIELD II is now more than half enrolled for the interim analysis and more than onethree fully enrolled. Importantly, as the current status would indicate, enrollment is now progressing at a constantly robust pace. With respect to the expected recruitment rate, as we said on our last call, once the site is fully up and running, which takes several weeks following it being formally open, we anticipate approximately 1.5 patients being recruited into this trial per center per month, and we expect to have a total of approximately 60 centers opened and recruiting patients. So at the peak of the enrollment period, we anticipate recruiting 90 patients per month, similar to the enrollment rate we had in SHIELD-1. With that said, having crossed the important 200 subjects threshold, we thought we'd provide some color on several encouraging enrollment trends we are seeing.

Speaker 1

Of note, the median age, male female split and percentage of enrolled cancer patients in SHIELD-two are similar to the patient population in the SHIELD-one large infusion pre specified sample. This is significant because we are thus far observing similar demographics in this more focused patient population in which we have already generated highly positive data in SHIELD-1. This is yet another reason we continue to strongly believe that SHIELD-two is a derisked Phase III trial, along with the fact that SHIELD-two is not being conducted within the tight COVID related restrictions that were in place during the pandemic and throughout the duration of SHIELD-one. Of course, we are also leveraging key learning from SHIELD-1 related to the sites involved in the study. To this end, while we are targeting approximately 60 centers for SHIELD II around the same number as SHIELD I, we have firm knowledge of the best performing sites from SHIELD 1 in terms of recruitment, patient monitoring and good clinical practice.

Speaker 1

We believe this to be essential in the execution of SHIELD II. We have also enhanced our clinical operations team and other key steps towards supporting a successful study. Moreover, the Data Safety Monitoring Committee in charge of the review of cumulated safety data and study conduct for SHIELD 2 study has twice recommended to continue the study without modification, meaning that no safety issues related to DPF-one hundred have been observed in SHIELD-two to date. Moving on, to reiterate what we have said previously, we have a clear regulatory pathway for the potential NDA submission for DIPLEX-one hundred in the U. S.

Speaker 1

Last year, the FDA acknowledged not only the SHIELD-one results may provide supportive evidence of the safety and efficacy of DIPLEX-one hundred in patients with large surgical incision, but also confirm that if successful, SHIELD-two is sufficient to support a potential NDA submission. I'd like to take a moment to acknowledge an often overlooked key aspect of the compelling DPIRD-one hundred product profile, and that is its substantial intellectual property foundation. Specifically, we are fast approaching 175 granted and pending applications patent for the Flex platform and its users for the treatment of different indications. Among those massive use patents are a significant number of patents with long term protection for DPLEX-one hundred for the prevention of surgical site infection. For example, our Diplex 100 SSI patent is expected to remain in effect until 2,035 in more than 40 countries worldwide.

Speaker 1

This incredibly strong IP position only enhances the value of this promising late stage product candidate for us. Shifting gears. We continue to advance Shield 2 from a strengthened financial position following our January 2024 private placement financing or PIPE for $16,000,000 of gross proceeds. Importantly, our cash runway now extends into the Q4 of this year and beyond the anticipated timing of Shield 2's planned unblinded interim analysis. Moreover, the company has the potential to secure an additional $19,000,000 if the result of the unblinded interim analysis are positive and all warrants issued in the financing are exercised, which would fund polypidem to the start of a planned rolling NDA submission for VYPSX-one hundred.

Speaker 1

As a reminder, the PIPE syndicate was comprised of new and existing investors, including participation from U. S. Life science focused investors, Dafna Capital Management and Rosewind Advisors. Before I turn the call over to Johnny for his review of the financials, I'd like to let you all know that we have recently posted a newly revamped corporate presentation on our IR website. We would encourage all of you to take a look at your convenience.

Speaker 1

With that, it is my pleasure to now turn the call over to Johnny. Johnny?

Speaker 2

Thank you, Nicolas. As of March 31, 2024, the company had cash and short term deposits of $14,500,000 as compared to $5,300,000 at the end of 2023. This includes the net proceeds of approximately $15,000,000 generated from the PIE financing closed in January 2024. We expect that our cash balance will be sufficient to fund operations into the Q4 of 2024. Now let's turn to our income statements.

Speaker 2

Research and development expenses for the 3 months ended March 31, 2024, were $5,100,000

Operator

compared to $3,800,000

Speaker 2

in the same 3 month period of 2023. The increase in R and D expenses in the most recently completed quarter was driven by the ramp up of the ongoing SHIELD II Phase III trial. Marketing and business development expenses for the 3 months ended March 31, 2020 4, were $236,000 compared to $385,000 during the prior year period. General and administrative expenses for the 3 months ended March 31, 2024 were $1,000,000 compared to $1,600,000 recorded in the same 3 month period of 2023. This decrease reflects our ongoing cost containment efforts.

Speaker 2

For the 3 months ended March 31, 2024, the company had a net loss of $6,400,000 as compared to $6,100,000 in the Q1 of 2023. With that, we will now open the call to your questions. Operator?

Speaker 3

Thank And your first question comes from the line of Roy Buchanan from Citizens JMP. Please go ahead. Your line is open.

Speaker 4

Hey, thanks for taking the questions. I appreciate all the comprehensive updates. A couple just quick ones on SHIELD II. I guess, Ikhla, can you just review in a little bit more detail, I guess, the timelines for the NDA submission and the expected review? And I would say 505(2) you have breakthrough designation.

Speaker 4

Just what can we expect as far as the timeline? And then what are the plans for Europe, assuming SHIELD II is successful? You may be on mute or I may have dropped. No, I can hear you, Raj. So,

Speaker 1

yes, now we are not on mute. Sorry. Can you hear me?

Speaker 4

Yes.

Speaker 1

Hi. Good morning. Thank you, Roy. Thank you for the question. So SHIELD II is expected to finalize the 400 patients for the interim analysis this mid this year with readout for that and around the fall.

Speaker 1

And assuming we are stopping there or maybe I should say assuming we are we will need to continue to the 600 patients, which is the minimum for the study design, it is another quarter for recruitment. So towards the end of the year, we expect to get that done as well. And the understanding that we have is that during 2025, at the first half of twenty twenty at the end of the first half of 2025, we should be submitting NDA, which means that towards the end of 2025, we will get the result. This assumes that we are continuing recruitment, and this is our assumption. If we decide to stop the recruitment then well, let's leave it this way.

Speaker 1

So this is still continuing recruitment up to the 600 patients and this takes us into the end of 2025 for the NDA. With regards to Europe, we are looking at it as a parallel strategy. It takes a bit longer to get the approval in Europe. Although we are entitled to the centralized procedure, so we can submit once and get an approval for all of Europe, which is very beneficial. We will be making a more, let's say, tactical decision as we get to the readout, see whether we want to get before we submit to Europe to have the end of Phase 3 meeting with the FDA, but these are really tactical.

Speaker 1

So our assumption is that Europe will shortly follow after U. S. In terms of NDA.

Speaker 4

Okay, great. And then just one on the sites. I guess, can you provide a bit more detail on the geographic breakdown of the current 50 sites? I know the countries are listed in the press release, but those predominantly in the U. S.

Speaker 4

Or elsewhere, Western Europe, etcetera. And then for the additional 10 sites, where are those expected to be added? Thanks.

Speaker 1

Sure. So we actually related a little bit to that in the press release, listing the list that the countries that are example of countries that are participated. We listed U. S, Germany, Italy, Ireland, Portugal, Hungary and Israel. We have some additional countries, Eastern European countries that are also being added.

Speaker 1

Overall, I would say that it is between in the European countries around between 3 to 5 centers per country. In the U. S, we have a bit more. And that's about that. It's quite spread similar.

Speaker 1

Many countries that were in Shield 1 are also in Shield 2. We didn't have that much Western Europe in Shield 1. We have a little bit more of Western Europe now, which we see as a good thing because we see that the data is more clean and repeats itself.

Speaker 4

Okay, great. That's helpful. Thank you. And then maybe one last one if I can. Just I guess assuming SHIELD II is successful, how soon do you think you can pivot or not pivot, but advance the pipeline?

Speaker 4

You have OncoPlex kind of I guess in the waiting. Are the plans? How fast can you get that going? Thank you.

Speaker 1

So this is something that we are actually putting a lot of effort now into. So obviously, our top priority right now is DPX-one hundred. But as we previously said, we are looking into the pipeline. The second in line priority is the oncology program, the OncoPlex, which remains a priority for us. If you remember, we had a successful pre IND meeting with the U.

Speaker 1

S. FDA supporting the Phase onetwo clinical trials. So this is our first priority, but we are also looking on potential broadening of that, a more strategic pipeline prioritization, looking also in some additional direction in order to be prepared with this for the time of the top line. We want to make sure that once we are past this very important milestone of Phase 3 in SHIELD 1 sorry in SHIELD 2 in Diplex 100, we are ready for expansion of the pipeline. So I think after the top line, we will also have some news to share there.

Speaker 1

This is something we are looking at very in-depth these days.

Speaker 4

Okay. Thank you.

Speaker 3

Thank you. There seems to be no further questions. I would like to hand back for closing remarks.

Speaker 1

Thank you for joining PolyPrid's Q1 2024 Earnings Conference Call. We remain highly confident in our long term prospects, especially the potential of our promising late stage product candidate, Diplex 100. As always, we are grateful to our team members, shareholders and all external partners for their commitment to our mission and support in continuing to advance toward our goal of bringing DPLEX-one hundred to healthcare providers and patients as quickly as possible. We look forward to speaking with you again on our next conference

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Key Takeaways

  • SHIELD II enrollment has surpassed 200 subjects across ~50 centers worldwide; an unblinded interim analysis of 400 patients is expected mid-2024 with top-line results in H2 2024.
  • Recruitment pace is tracking at ~1.5 patients/site/month across ~60 sites (peak ~90 patients/month), leveraging best-performing SHIELD I centers and enhanced clinical operations.
  • No safety issues have emerged in SHIELD II, with the Data Safety Monitoring Committee twice recommending continuation without modification, underscoring Diplex-100’s tolerability.
  • Intellectual property strength includes ~175 granted or pending patents for the Flex platform, with Diplex-100 SSI patents protected until 2035 in over 40 countries.
  • Financial position features $14.5 M in cash and short-term deposits as of March 31, 2024—funding operations into Q4 2024—and potential for an additional $19 M if warrants are exercised upon positive interim results.
A.I. generated. May contain errors.
Earnings Conference Call
PolyPid Q1 2024
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