Ocugen Q1 2025 Earnings Call Transcript

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May 9, 2025

There are 9 speakers on the call.

Operator

Good morning, and welcome to Ocugen's First Quarter twenty twenty five Financial Results and Business Update. Please note that this call is being recorded at this time. All participant lines are in listen only mode. Following the speakers' commentary, there will be a question and answer session. I will now turn the call over to Tiffany Hamilton, Ocugen's Head of Corporate Communications.

Operator

You may begin.

Speaker 1

Thank you, operator, and good morning, everyone. Joining me on today's call and webcast is Doctor. Shankar Mussonuri, Ocugen's Chairman, CEO and Co Founder, who will provide a business update and overview of our clinical and operational progress. Ramesh Ramachandran, our Chief Accounting Officer, is also on the call to provide a financial update for the quarter ended 03/31/2025. Doctor.

Speaker 1

Huma Kumar, our Chief Medical Officer will be available to answer questions following the presentation. This morning we issued a press release detailing associated business and operational highlights for the first quarter of twenty twenty five. We encourage listeners to review the press release, which is available on our website at ocogen.com. This call is being recorded and a replay with the accompanying slide presentation will be available on the Investors section of our website for approximately forty five days. This presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties.

Speaker 1

We may in some cases use terms such as predicts, believe, potential, propose, continue, estimates, anticipates, expects, plans, intends, may, could, might, will, should, or other words that convey uncertainty of future events or outcomes to identify these forward looking statements. Such statements include, but are not limited to statements regarding our clinical development activities and related anticipated timelines. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from our current expectations. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission, the SEC, including the risk factors described in the section entitled Risk Factors in the quarterly and annual reports that we file with the SEC. Any forward looking statements that we make in this presentation speak only to the date of the presentation Except as required by law, we assume no obligation to update forward looking statements contained in this presentation, whether as a result of new information, future events or otherwise after the date of this presentation.

Speaker 1

Finally, Accutane's quarterly report on Form 10 Q covering the first quarter of twenty twenty five was filed today. I will now turn the call to Doctor. Mussonuri.

Speaker 2

Thank you, Tiffany, and thank you all for joining us today. As detailed in our press release, we are excited to discuss the substantial progress of our game changing modifier gene therapy platform. All three gene therapies are advancing through the clinic, and we're on track to meet our goal of three biologics license applicationmarket authorization application filings in the next three years. Modifier gene therapies offer potential cures for life. Unlike traditional gene therapies or gene editing, modifier gene therapies have the ability to regulate gene networks, reset homeostasis, restore the functional network, and create a healthy environment for retinal cells to survive.

Speaker 2

Since photoreceptors and retinal cells are non dividing, creating a healthy environment is a powerful concept, and cells can potentially survive a life with this therapy. Today, based on the unique mechanism of action, these therapies target diseases with large patient populations globally, millions, instead of a very small group of hundreds to a few thousand patients, as with the traditional gene therapies in the market today. Positive clinical data continues to affirm the modifier gene therapy approach. We started off the year with a two year safety and efficacy data from the Phase onetwo OCU400 clinical trial that further supports the gene agnostic mechanism of action of OCU400, a broad RP treatment not restricted to specific mutations with durability. It was especially gratifying to reach an alignment with FDA for the OCU410SD Phase twothree pivotal confirmatory trial, which can be the basis of a BLA submission in 2027.

Speaker 2

Accelerating the clinical timeline of OCU410 SD will save significant costs and potentially address disease burden even sooner than anticipated. Finally, dosing was complete. A head off schedule in the phase two portion of the OCU410 phase onetwo ARMADOT clinical trial for geographic atrophy late stage dry AMD. We are planning to initiate the Phase III clinical trial in 2026 on target with the BLA submission in 2028. I will now provide additional details around the program updates.

Speaker 2

OCU400 has the potential to treat approximately three hundred thousand RP patients in The U. S. And EU, and one point six million patients globally, using a gene agnostic approach delivered via single subretinal injection to target all hundred genes associated with RP. A traditional gene therapy approach would require developing hundred different products to address all hundred genes, which is not commercially viable. More significantly, recent news affirms that traditional gene therapy approach is ineffective in achieving clinically meaningful outcomes for treating RP.

Speaker 2

The positive two year long term safety and efficacy data from the Phase onetwo clinical trial of OCU400 for RP demonstrates a durable and statistically significant, with a p value of point zero zero five, improvement in the visual function, LLVA, in all evaluable treated subjects at two years when compared to untreated eyes. Additionally, one hundred percent, ten out of ten, of treated evaluable subjects demonstrated improvement or preservation in visual function compared to untreated eyes. The phase three study spanning one year will enroll 150 participants divided into two study arms, seventy five participants with the row gene mutations, and seventy five participants who are gene agnostic. In each arm, participants will be randomized in a two:one ratio to receive either treatment or remain in an untreated control group, respectively. The OCU400 Phase III Lyme light clinical trial is open to all eligible RP patients, only to advanced stage RP, including pediatric subjects age five plus regardless of gene mutation, syndromic and nonsyndromic forms of RP.

Speaker 2

Two key parts of our potential BLAMAA filings next year are on schedule. The first is manufacturing, and we are tracking to complete process validations this year in support of registration. This material can also be used for commercial supply in 2027. The second part, the phase three clinical trial is progressing well. Just this week, EMA granted eligibility to submit our OCU400 MAA via centralized procedure as an ATMP based on the current study design and statistical analysis plan.

Speaker 2

This is a significant project milestone for OCU400. EMA has appointed a project lead to support any queries related to the application, and six months prior to MAA submission, the rapporteur and the co rapporteur will be appointed to support the application. This eligibility grant is a testament to EMS recognition of the potential of OCU400 to address serious unmet medical need in Europe. There is currently no approved treatment option for Stargardt disease that encompasses more than twelve hundred mutations and affects one hundred thousand people in The U. S.

Speaker 2

And EU, and one million globally. The FDA's decision to approve a Phase twothree trial for registration underscores the potential of OCU-four tenancy to meet this critical unmet medical need, and has never been explored in clinical trials for star blood disease. Data from the OCU410SD Phase I Guardian clinical trial has shown significant improvements in both structural and functional outcomes. Additionally, OCU410 ST has consistently demonstrated a very favorable safety and tolerability profile. In BCVA, treated eyes demonstrate a two line or 10 letter gain in the visual equity compared to untreated eyes, and a statistically significant p value of point zero two improvement in visual function when compared to untreated LOIs.

Speaker 2

In the latest data, atrophic lesions grew slower by fifty four percent at six months and by one hundred and three percent at twelve months in evaluable treated eyes when compared to untreated eyes. The phase twothree pivotal confirmatory clinical trial, which includes an adaptive design with an interim MAST analysis at eight months, with randomized 51 subjects, thirty four of whom will receive a single subretinal injection of OCU410 ST in the eye with worse visual acuity, and seventeen of whom will serve as untreated controls. The primary endpoint in the clinical trial is change in atrophic lesion size. Secondary endpoints include visual acuity as measured by best corrected visual acuity, BCVA, and LLVA compared to untreated controls. One year data will be utilized for the BLA filing.

Speaker 2

OCU410, specifically designed to address multiple pathways implicated in the pathogenesis of dry AMD, offers a distinct advantage over current treatments that target only one cause of GA, require multiple injections per year, and are accompanied by various safety concerns. Our goal with OCU410 is to provide a comprehensive and durable solution, a potential one time therapy for life, for the two to three million people in The U. S. And Europe, and eight million globally suffering GA. In February, dosing was complete in the phase two portion of the OCU410 phase onetwo ARMADA clinical trial for GA.

Speaker 2

In evaluable subjects, OCU410 twelve month data demonstrates a four line or 23 letter gain in the visual acuity. There was forty one percent slower GA lesion growth in treated eyes versus untreated fellow eyes after a single injection. Furthermore, at twelve months, Ocuportin treatment preserves more retinal tissue around the GA lesions of treated eyes compared to commercially available products given monthly or every other month. In the phase two study, the safety and efficacy of OCU410 in patients with GA secondary to dry AMD will be assessed. Fifty one patients with randomized one to one either of two treatment groups, medium or high dose, or a control group.

Speaker 2

In the treatment group, subjects received a single subretinal two hundred microliter administration of medium dose or high dose, while the control remained untreated. The Data and Safety Monitoring Board has evaluated safety in all fifty one patients from Phase II clinical trial. Today, there have been no serious adverse events related to OCU410. Phase II interim results are expected in the fall of this year. I would also like to provide a summary of programs outside of our first in class modifier gene therapy platform.

Speaker 2

Earlier this year, the first patient was dosed in the phase one clinical trial for OCU200, the company's biologic product candidate for diabetic macular edema. We are currently dosing the second cohort based on first cohort safety data. Ocugen plans to complete the Phase one clinical trial in the second half of twenty twenty five. The company intends to initiate the Phase three trial for Neocar contingent on adequate availability of funding, and are based on the potential of a future partnership. Lastly, the investigational new drug application is in effect for OCU500, and the National Institute of Allergy and Infectious Diseases intends to initiate a phase one clinical trial in the second quarter of twenty twenty five.

Speaker 2

Ocugen is continuing discussions with the relevant government agencies, as well as strategic partners regarding developmental funding for its vaccine technology for flu. With that, I will now turn the call over to our Chief Accounting Officer, Ramesh Ramachandran, to provide an update on our financial results for the first quarter ended 03/31/2025. Ramesh? Thank you, Shankar. Our research and development expenses for the quarter ended 03/31/2025 were $9,500,000 compared to $6,800,000 for the first quarter of twenty twenty four.

Speaker 2

General and administrative expenses for the quarter ended 03/31/2025 were $6,500,000 compared to $6,400,000 during the same period in 2024. Net loss was approximately $15,300,000 or $05 net loss per share for the quarter ended 03/31/2025, compared to a net loss of approximately $11,900,000 or $05 net loss per share for the first quarter of twenty twenty four. Our cash and restricted cash totaled $38,100,000 as of 03/31/2025, compared to $58,800,000 as of 12/31/2024. The company expects that its cash and restricted cash will provide the company cash runway into the first quarter of twenty twenty six. As always, we are constantly exploring strategic and shareholder friendly opportunities to increase our working capital.

Speaker 2

That concludes my update for the quarter. Tiffany, back to you.

Speaker 1

Thank you, Ramesh. We will now open the call for questions. Operator?

Operator

Thank you. We will now begin the question and answer session. And your first question comes from the line of Michael Kukhniewicz with Maxim Group. Your line is open.

Speaker 3

Hey there. Thank you so much for taking my questions today. Congratulations on all the progress.

Speaker 2

Thank you.

Speaker 3

So I think just first off, in terms of the Limelight study, where are you at enrollment? And when do you have to complete that to reach your filing targets?

Speaker 4

Good morning. This is Huma Kumar, CMO, Kejin. Thanks for your question. So, our 9 LIGHT OCU400-three 0 1 Phase III trial, We are on track for enrollment as planned for first half of twenty twenty five. And we will be on track for our BLA submission a year from now in terms of clinical.

Speaker 4

Thank you.

Speaker 3

All right. Thanks for that answer. Just as we approach the completion of that first pivotal study, I'd like to see if you could just expand a little bit on manufacturing capabilities, and then what you would have to build out and expand to support the filing and commercialization stage of this product.

Speaker 2

Yeah. Michael, I'll answer the first part, then our CSO, Doctor. Arunupadhyay, is on the call too. He can explain what our manufacturing plants are. So for BLA submission, we have to complete process validations at the commercial scale, which we are on target this year.

Speaker 2

And so that's what is needed. And obviously, we have plenty of capacity for commercial launch of this product, ex U. S. We also built our own facilities here in Malvern, Pennsylvania. Once we commercially launched the product in 2027, shortly after that, within two years, our goal is to get the second site in The U.

Speaker 2

S. And get it ready for launch, or commercial supplies. Arun, do want to go into more details on this year's plans?

Speaker 5

Yeah, thanks, Sunkar. So as you stated, we are on track to complete the process validation activity and get ready for BLS submission next year. And and and for initial commercial launch, we'll be using our partner, InsinoBio, for OCU 400 project. But our plan is, like, subsequently, we are going to bring back the manufacturing. We'll do the tech transfer and and bring the manufacturing in house in our manufacturing facility, which we have, completed construction last year.

Speaker 5

And subsequently, we plan to release the product from our second site in The US. So that's our strategy for to support the future cruise lines.

Speaker 3

Alright. Thank you. And then just one more for me, and I'll hop back into the queue. Could you give us an idea of when we could expect to see the next update on the OCU200 program? I know it's not core, but DME has been an exciting space.

Speaker 2

Yeah. I think the clinical trial we're planning to complete later part of this year. So our goal is before the end of the year, we'll provide clinical update, including preliminary efficacy and safety.

Speaker 3

All right. Thank you so much. And once again, on all the progress.

Speaker 2

Thank you.

Operator

Next question comes from the line of Robert Lebauer with NOBEL. Your line is open.

Speaker 6

Good morning, everybody. I had a clarification on some of the prepared remarks regarding Europe and the regulation there. My understanding was that these remarks referred to four ST and the clinical trial going on. Am I correct on that?

Speaker 2

So the, no, your question, Robert, related to four ten ST, yeah, I mean, the morning we actually talked during this. We have a recent communication from EMA on OCU400, just to clarify. And so for submission of the MAA, and that's the path, and it's going well. That's what we talked about. As far as OCU410 SD is concerned, the clinical trial we designed with FDA, which will be a registration trial, which we are going to embark on it shortly.

Speaker 2

And we are discussing that strategy with EMA. We don't have the final answer yet. And obviously, since this is a much needed product, significant unmet medical need, just as RP, Stargardt disease, there's no poor treatment in EU. We are hoping they will align with FDA clinical trial design and also agree. Again, we are in negotiations with EMA.

Speaker 2

When we have an answer from them, we'll let the markets know.

Speaker 6

Okay, great. And just separately, you had mentioned the influenza trial with naive and considering what's been going on with HHS and the FDA and the NIH in the past two or three months and the overhaul going on at those agencies. Have you had any changes in the relationship or with contact of people or any insights you can give as to what the agency is thinking going forward? I know that some of the companies that were developing COVID vaccines had grants revoked and canceled. So I was wondering if you could, give us any insight as to what's going on in the divisions that you interact with.

Speaker 2

Yes, Robert, great question. This is related to our COVID vaccine targeting intranasal versus inhalation route. This clinical trial, NIH is still on target to support it. In fact, I will ask, Doctor. Upadhyay, our CSO, to comment more on this.

Speaker 2

He's in direct contact with NIAID.

Speaker 5

Go ahead. Thank you, Shankar. Yes, so, I think we don't see any impact on us related to the changes you just mentioned, happening at the government end. And so we are constantly interacting with NAAD, and and we are collaboratively working with them, to to finalize, the clinical study plan as well as, you know, supporting this, you know, required material to initiate the phase one study. So we are on track, and as Shankar mentioned, we are hoping to initiate the phase one study in the second quarter of this year, and we are on target for that.

Speaker 5

And our relationship has been great. Would say I think it has improved even actually. Our engagement with NARA has increased significantly to initiate the study.

Speaker 6

Okay, great. Thank you very much.

Operator

Next question comes from the line of Swayampakula Ramakanth with H. C. Wainwright. Your line is open.

Speaker 7

Thank you. Good morning, Shankar and team. A couple of quick questions on the Limelight study. Does the Phase three study have an interim look? And if so, what's the general timing that we should expect that to be?

Speaker 4

This is Homer. Thanks for the question. There is no interim look in the study. And once the enrollment is complete and we'll be giving periodic updates there are safety for 30 subjects each that we are following for the Langheit study. However, the full data would be available once the CSR is final.

Speaker 4

As this is a blinded study, we cannot release the data before, yes. Thank you.

Speaker 7

Thank you for that, Homer. A quick clarification on the design. Because I was, maybe I misheard it. I thought the randomization for the limelight study was two is to one, but Yes. Okay, because I thought I heard it as one is to one based on Ankur's comments, but probably I got it wrong.

Speaker 7

And then on

Speaker 5

the

Speaker 2

So RK, just a clarification, the one is to one is to one is for the currently ongoing clinical trial for OCU410 targeting dry aginulated macular degeneration. So they have a medium dose, high dose, and control in that phase two.

Speaker 7

Perfect. Perfect. Then one last question from me is on the three modified gene therapy programs, what clinical data updates would we see in 2025? And I'm just trying to see if we can get any idea of how strong the data is going to look in all of the pivotal programs as we move forward.

Speaker 2

I think from OCU400 perspective, as Huma stated, it's a blinded Phase III trial. You'll get periodic updates on how the trial is progressing. Other than that, the data won't come out until next year, until the trial is completely done. The second program, OCU410, our MARA trial for dry AMD, and we are expecting interim results sometime this fall. And OCU410 SD, obviously the registration trial is going to start shortly in the next couple of months.

Speaker 2

We are going to provide when you have a complete, you know, twelve month data from phase one on this study. And in addition, OCU200, the phase one trial should be complete late this year, and we'll provide the data from the trial too.

Speaker 7

Perfect. Thanks. Thanks for taking all my questions.

Speaker 2

Thank you.

Operator

Next question comes from the line of Daniil Gataklin with Chardan. Your line is open.

Speaker 8

Good morning. This is Steven on for Daniil. Thanks for taking my question. For OCU400 for RP to file in Europe, do any of the patients need to be treated in Europe or is the data from The US and Canada going be sufficient?

Speaker 4

So I'll take that question. That's a great question actually. So as we have stated in the past as well that no additional trial is required in Europe. If we get the approval in U. S.

Speaker 4

Based on our primary endpoint and the study design, U. S. And Canada is sufficient. In fact, U. S.

Speaker 4

Is sufficient for our approval in Europe. So, no additional trials are required. This trial has sufficient representation for global mutations as it's the only broad RB indication gene agnostic

Speaker 2

Great. Thank you.

Operator

This concludes the Q and A portion. I will now turn the call back over to Chairman, CEO, and Co Founder, Doctor. Shankar Muzunuri. Please go ahead.

Speaker 2

Thank you, operator. Our efforts in the first quarter of the year evidenced the importance of our gene therapy programs and the significance of upcoming milestones. We remain steadfast in our mission to provide a one time therapy for life to address considerable unmet medical needs that exist for millions of patients facing the terrifying prospect of losing their vision, And look forward to what this quarter and the rest of the year holds for the company, our people, patients and shareholders. Thank you.

Speaker 1

Thanks again everyone. Goodbye.

Operator

This concludes today's conference call. Thank you all for joining, and you may now disconnect.

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Key Takeaways

  • Ocugen’s modifier gene therapy platform is advancing with all three programs on track for Biologics License Application filings within the next three years.
  • OCU400, a gene-agnostic treatment for retinitis pigmentosa, showed two-year safety and efficacy with 100% of treated subjects improving or preserving visual function and is enrolling in a Phase III trial aiming for a 2027 BLA.
  • OCU410SD for Stargardt disease demonstrated BCVA gains of two lines and slowed atrophic lesion growth by 54% at six months and 103% at 12 months, with a Phase II/III pivotal trial initiated under an FDA-aligned adaptive design.
  • OCU410 for geographic atrophy in dry AMD reported a 23-letter gain in visual acuity and 41% slower lesion growth in its Phase II ARMADA trial, with no serious adverse events and plans to start Phase III in 2026 for a 2028 BLA.
  • In Q1 2025, R&D expenses were $9.5 M and G&A was $6.5 M, resulting in a $15.3 M net loss and a cash runway into Q1 2026, while additional programs like OCU200 for DME and OCU500 flu vaccine are progressing.
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