Release Date: August 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BiomX Inc (PHGE, Financial) successfully merged with Adaptive Phage Therapeutics and completed a $50 million financing, strengthening its financial position.
- The company reported positive safety and efficacy results from the Phase 1b/2a trial of BX004, showing potential in treating chronic lung infections in cystic fibrosis patients.
- BiomX Inc (PHGE) has a diverse pipeline with both fixed phage cocktails and personalized phage treatments, addressing a broad range of bacterial strains and resistant mechanisms.
- The company expects to have sufficient funding to reach multiple important clinical milestones through the fourth quarter of 2025.
- Net income for the second quarter of 2024 was $4.5 million, a significant improvement from a net loss of $6.4 million in the same period of 2023.
Negative Points
- Research and development expenses increased significantly to $6.9 million in Q2 2024 from $3.8 million in Q2 2023, primarily due to clinical trial preparations.
- The company announced a reverse stock split, which may indicate concerns about maintaining stock price levels.
- Enrollment for the BX211 study has been challenging, spanning over more than two years, which could delay results.
- General and administrative expenses rose to $2.8 million in Q2 2024 from $2.3 million in Q2 2023, reflecting increased costs post-merger.
- Net cash used in operating activities increased to $22.6 million for the first half of 2024, up from $9.1 million in the same period of 2023, indicating higher operational costs.
Q & A Highlights
Q: Can you provide details on how the earnings per share were calculated, and was the net income of $4.4 million used as the basis?
A: Yes, the full net income from the financial statements was used for the calculation of the earnings per share. The detailed calculations are included in the notes of our 10-Q.
Q: Given the increase in R&D expenses, should we expect these expenses to trend downwards to maintain the cash runway through the end of next year?
A: Yes, this is the first time we are operating post-merger, and we are implementing redundancies. We are committed to our guidance that the cash runway will last until the end of next year, and you will see a reduction in the budget and burn rate.
Q: Regarding BX004, is there an expected FDA meeting, and has the timeline for the Phase 2b trial been pushed out?
A: We had a successful FDA meeting, and the BX004 program is on track. We expect to report results in the third quarter of 2025, with no changes to the original plan.
Q: For BX211, what is considered a good outcome for the 13-week data, and what are the next steps if the results are positive?
A: A 40% reduction in ulcer size in the placebo arm and around 70% in the phage arm would be exciting. If we see positive signals at week 13, we will discuss with the agency and partners to move forward aggressively.
Q: Can you provide an update on the enrollment status for the BX211 study?
A: The study is expected to complete in the first quarter. It has been challenging to recruit, but we have passed the majority of patients and are on track to complete the study on time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
