Arbutus Biopharma (ABUS) 6 Nov 24 2024 Q3 Earnings call transcript
Arbutus Biopharma held a third-quarter financial results and corporate update call, which shed light on its ongoing efforts to develop functional cures for chronic hepatitis B (HBV) using its RNAi therapeutic imdusiran. The call, led by Vice President of Investor Relations, Lisa Caperelli, saw the participation of key executives including Michael McElhaugh, Interim President and CEO, David Hastings, CFO, Karen Sims, CMO, and Mike Sofia, CSO.
A Mission for Functional Cure: Addressing the Urgent Need in Chronic HBV
The call began with Michael McElhaugh discussing the importance of a functional cure for chronic HBV, a condition that affects more than 250 million people worldwide despite the availability of preventive vaccines and current treatment options. This underscores Arbutus' mission to develop innovative combination treatments, including imdusiran, to provide a more optimal functional cure rate for patients with HBV. By lowering viral markers such as HBV surface antigen and boosting the immune system, Arbutus aims to significantly reduce the patient's risk of liver cirrhosis and hepatocellular carcinoma, decrease patient stigma, and eliminate lifelong treatment and healthcare costs.
Clinical Updates on IM-PROVE I and II Trials
McElhaugh provided updates on Arbutus' Phase IIa clinical trials, IM-PROVE I and IM-PROVE II, which are focused on reducing surface antigen as low as possible before administering an immune modulator. In IM-PROVE I, 33% of patients achieved surface antigen loss at the end of imdusiran and interferon treatment that was sustained at 24 weeks post end of treatment, while 67% of patients who had surface antigen less than 1,000 IU/mL at baseline maintained surface antigen loss 24 weeks after completion of imdusiran and interferon treatment. These rates are among the highest reported in recent studies, highlighting the potential of imdusiran in achieving functional cures.
AB-101: A Liver-Centric Oral Small Molecule PD-L1 Checkpoint Inhibitor
Arbutus also discussed its oral small molecule PD-L1 checkpoint inhibitor, AB-101. This drug is designed to minimize systemic exposure and reduce the chance of immune-related adverse events seen with checkpoint antibodies. Currently in a Phase Ia/Ib clinical trial, AB-101 has shown promising results, with multiple ascending doses generally well tolerated and evidence of receptor occupancy.
Financial Updates and Litigation Progress
David Hastings provided a financial update, noting that Arbutus ended the third quarter of 2024 with approximately $131 million of cash, cash equivalents, and investments. The company expects to report additional data from the IM-PROVE I clinical trial and preliminary end-of-treatment data from the nivolumab arm of the IM-PROVE II trial at AASLD next week, marking the achievement of all second-half milestones.
Looking Ahead
Arbutus remains optimistic about its future prospects, with a strong financial position and a commitment to advancing its HBV assets to provide a functional cure for people with chronic HBV. The company's ongoing research and clinical trials, including the Phase IIb clinical trial for imdusiran, hold promise for transforming the HBV treatment landscape and offering hope to millions of patients worldwide.