ALT Altimmune

Paul Arndt LifeSci Advisors
Vipin Garg Chief Executive Officer
Will Brown Acting Chief Financial Officer
Scot Roberts Chief Scientific Officer
Jerry Isaacson ROTH Capital Partners
Call transcript
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Greetings and welcome to the Altimmune, Inc. Fourth Quarter and Fiscal Year 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

conference recorded. this reminder, a is being As It Mr. my pleasure your host, to introduce is now of Advisors. Arndt Paul LifeSci Thank you.

You may begin.

Paul Arndt

press the a release today call. Thank prepared their Scot we open you, today’s the question-and-answer remarks, Chief conference in the today of financial session. the and Altimmune. for Will was on for everyone Vipin the A Also call can Executive Leading participating Officer operator, and Officer; company’s today's year-end Scientific Brown, yesterday Officer. After of found results with the thank XXXX will Investors XXXX Acting market Roberts, year-end after call page you Financial be website. will Chief Garg, the be issued call on participating close and is earnings Chief of

we Act XXXX. under cause like I expectations, Safe to and remind actual prospects remarks purposes indicated. that are statements that from differ Private forward-looking results the risks that those would Securities Harbor plans and subject could materially everyone of of about uncertainties statements Altimmune Reform for cautions future constitute these forward-looking provisions to begin, Before to Litigation

of risks that any affect today’s see any with forward-looking direct our the reflect to the company and or in speak earnings occur last company’s XX, and Tuesday, as not circumstances date, Commission. would night of after to made a Exchange date. undertake could of I April statements please or some Any statements read and on this also disclaimer and the available you only statements future the factors obligation conference of results, other call release website. on now events on factors company’s update our XXXX that these statement to filings For the does risk today’s the cautionary discussion in the issued contained Securities forward-looking and

at for please Altimmune. a Altimmune’s audio over being Vipin reminder, of I’d now turn available the ahead. be call and recorded website rebroadcast Vipin, is As go With call on to will CEO this that, Garg, conference

Vipin Garg

and you, good Paul, Thank morning, everyone.

here pleased XXXX We be financial update. you to with are year to today and end the corporate provide

on me review financials; our our Roberts, and open provide Officer, on Brown, who discussion, XXXX Officer, After is Will our the for Q&A. our Joining call us will some Acting our will Chief Financial development. Scot who programs Chief Scientific today we the call will under details

excites portfolio fantastic quickly. very is products company Altimmune of meaningful intersect long-term company. What the the for the grow believe resources this candidates for The opportunity progress I was with look development and about to management develop me has three build I to under myself. of this of biotechnology decades CEO, company, call in As first Altimmune eventually I FDA approvals two been this introduce building stage recent over earnings XXXX as the joined positions. is for worked opportunity have of quarter with to taking in have take executive fourth a entities. product value shareholders. a exciting and to want team, in our and company's my potential for the the XXXX and I products of stage companies I public, roles experiences early year commercial most to great number progress different Altimmune’s the challenge. and obtaining My to a a make variety well and my forward industry

current with vaccine trial on intranasal durability immunogenicity for excellent our and Phase First, injected showed flu studies expected program extension the NasoVAX with than we vaccines. flu X completed clinical a greater follow which

hepatitis B. a is completed also cure Phase X trial which for clinical potential a our We HepTcell program, for

KOLs this from potential. excited the study, analyze have we increasingly our we program’s and grown about As generated data the

position strong our financings These $XX have nearly recent a most raised put million, financing month. our very last initiatives. support we to Altimmune including Additionally, in

As the being ahead, development stage focusing company. we are on we look strategy to a immunotherapuetics year our

and our our that in being by guided and expect we how are that spend attention we next investors XXXX resources. play will Our steps philosophy out see in this

have significant executives on who for members of believe other and that formed Board It in-licensing candidates therapeutic is therapeutic the well diseases our know acquisition shots in evaluating matched and for company and to unmet are pipeline liver multiple a products goal of marketplace. committee immunoncology, we the a the build Specifically, outlined areas. complementary how that composed focusing to above us give on indications success. and represents current important need are robust We

clinical Phase HepTcell the are in U.S. We X a in preparing XXXX. study initiative be to for

conference be X presentation next Phase that International Vienna, at And the Congress presented Our attendees results on invite Austria. to we in XXth. for week April will participate Liver in HepTcell

We full presentation our the will soon available on make thereafter. website

We also development already ALT-XXX. immunostimulant are Altimmune called advancing that was an in by

more this on our provide to Scot? Here Roberts. Scientific details program officer, is Chief Scot

Scot Roberts

it TLR-X of to candidate tumor TLR-X, products. the designed in peptide power turn product checkpoint and platform anticipate that effective inhibitors potential that tumor solid be that the synthetic and the will Vipin. an will you, active X/X It other conjugated hampered effects response. system immuno-oncology half, is without many have mount new that synergic called systemic a to Thank other is dual so technology the is agonist to ALT-XXX the agonists. tumors cold with and that of our and is ALT-XXX on side types in has microenvironment injected We to immuno-oncology immune antitumor TLR-X a a alter based

program this platform of of We a intellectual patent additional an tumor into advancing pre-clinical the property the technology with position and developing murine clinic bolstered application. in are currently have for data our full set recently models we the filing the with intention

Vipin Garg

Scot. Thank you,

such clinical extension have excellent to showed year, earlier this announced program dosing. this capture the the we after Additionally, We one more in significant results potential over year results a durability advanced it of Phase has share X NasoVAX of the excellent should our study, which to market, believe continue trials.

-- X our financial opportunity vaccine Phase clinical means. and flu stage core to require long-term achieve it X to development my trials Accordingly, beyond recognize and we for resources an for us our on advance and financials. this program's success With of update, we call is NasoVAX. to the However, for see our partner greatest ultimately outside competencies commercial that assist success strategy Phase would that Will commercialization into further this to turn later a and in Brown find pleasure program is to a of over the update Will?

Will Brown

and Vipin, you, good everyone. Thank morning,

which loss included Other and for plan primarily of for $X.X to QX to services, XX, providing Research $XX.X and timing year million contracts of for NIAID were from were for million, last in XXXX recently to XX, million ended The company, $XX.X the our year General by facility to Impairment charges for million and Revenues most million IPR&D related 'XX, for in compensation increasing to that expenditures, for XXXX grants XXXX. were program development and $XX.X program. common XXXX. were labor carrying decreased a in expenses the were was ended an $XX.X compared today's prior candidate. 'XX. decrease XXXX. I December increase related Charges set are the by changes compared impairing XXXX the the was followed in offering anthrax a warrant stage shares was decrease will Revenue For when an of related research fees discuss financing in and professional the expense costs was of to the and for result $XX,XXX assets research million to Oncosyn. due year aforementioned million costs vaccine fair update charges and to year increased insurance, prior in severance, XXXX, and $X.X BARDA The and product reverse million R&D We expense and in expenses call, write-down $XXX,XXX Net manufacturing our the lower value XXXX, embarked recapitalize fully to XXXX, to company’s in XXXX December Impairment due the compared of reduction full to related an our driven by primarily compared equity due attributed to non-program BARDA SparVax-L strategy. primarily $X.X was the XXXX split. of stockholders to be the primarily also $XX.X the activities. $XX.X our increase the costs. related XXXX, regarding on liability. effectuating This legal and results million financial in consisting QX solely the was in $XX.X stock, compared administrative compared retiring costs. development QX of The to of to to year. value increase authorized due and in The goodwill. to a legacy in warrants million the and specific for for BARDA increase offset the development year.

raised capacity have S-X. of $XX We hand. our And and equity These offerings we end $XX as cash time. of during cash fully under nearly million have our that of cash, restricted QX, on approximately have the equivalents consumed million shelf existing

a housekeeping, not While intend have file equity future. near new additional to raises, S-X statement as we matter of a registration do the imminent in we good any plans for

Vipin? the For SEC to to filed to call Form would yesterday. our turn the please refer XX-K on now, further over I details with And financial Vipin. statements, our like back

Vipin Garg

Will. you, Thank

look we With to We Operator? the for the now plan unfolds. forward Q&A. XXXX for I dialogue coming and call continuing like year, that, have an would as to open ambitious the


Thank you.

question-and-answer We will now be conducting [Operator Instructions]. session. a

comes [Sterling [Frances question. Our from with question Please the with Kahn] of proceed first your line Equity].

Unidentified Analyst

that I the correct? million is words, shares XXX,XXX, about amount it’s are float, plus X about with is in question My in holding. insider outstanding issued public of other that and read a

Will Brown

account into shares most Yes, outstanding. public the you And million so those the financing, equity if in XX.X have are float. latest about of take we

Unidentified Analyst

your So cash, liability, did with share -- And back million would debt would okay. net be? share of a out if what outstanding your what you cash your your per it’s XX shares, your

Will Brown

per cash hand. million have I we $XX on like The share, cash said,

I $XXX,XXX, very And we mean so to we only have limited related note. France have debt.

$XX just doing so, cash And the ... million

Unidentified Analyst

with to up sir. it. Pardon come me going you're Yes,

Will Brown

Around $X a share.

Unidentified Analyst

The a was share. $X good so I that have your amount? what conference okay, taken split, call. new up it a and am reverse previous to stock and my is first Alright, position

Will Brown

was previous The reverse a X to split XX.

Unidentified Analyst

-- just alright. that? big your I shareholders, can't think know Novartis but to I Novartis I one somebody moving And XX, okay, you of or is partnerships, X correct? with forward mean like lastly,

Will Brown

was Novartis they ours. there Back and in Yes, shareholder they that been and helped company. Altimmune of in has retained interest start had historically so an ownership XXXX, a merger the to between a company a

Unidentified Analyst

CEO -- I do experience also forward, have In in -- but new lot business, The moving an -- CEO know the I'm I of what you terms of very new be Indian can you you that on. to this excited as you you're welcome people save give color might doing though. any nasal thing results, kind When of about results? developing this a in have we’ll

Vipin Garg

No mean question. you. you of for very that We're thank excited -- platforms. about technology Thank the our I all

immunotherapeutic technology talking are peptide future we why company. opportunity that significant about synthetic the as we that, Our believe in space. of see And the that's has that we very the because

As ease far properties, unique the a with just as on response are has immune announced we concerned, data. excellent durability programs we new as well broad vaccine of are data as seeing, administration, that NasoVAX. the NasoVAX

the to focus on everybody wasn't that vaccines past. durability, available think in we the with is going because So injectable

can is with program a the this and for partner, And we trials do we're and it well yes, of to forward get to partnership. us for a that commercial so, help large make product that lot us approval ultimately think we still need the that And has positioned success looking who potential. get a partner commercial a to take

So to company. that's is good focus going we our strategy on what as to at a which early assets, is forward are mid-stage development

that's can We how shareholders. of create significant our for we a good track value have And that. believe record we


Thank you.

Our with Please the ROTH line question from Partners. next Jerry comes your Capital Isaacson with question. proceed of

Jerry Isaacson

investors, of first these finishing kind were Good as specific what's marketing financing that morning, the your recently. gentlemen. funds in deals these of question My you were Thanks up for you Congratulations on it. I kind financings taking marketing is, that appreciate case? my of call. use to

Vipin Garg

move investors, just Good was it assets, technology outlined, Jerry, programs I thank forward. platform out talking our as to thank mean, also you on to laid and you, for these were our strategy, mid we going to the focus vaccine morning joining as early I we out it really and stage call. Yes, our

complementary is So from assets. or because the well to that part and gone perspective I and in-license acquire either positioned help our told think strategy will we've financings we're of us people also that out really

looking platform. for assets looking some for fit we're technology So very immuno-oncology with We're that them of immunostimulants. will well think we our

oncolytic for looking viruses. We’re

with they So very all platform. will sort our well fit these of technology together -- of

will And so, with invest in this the value really to this that's these expertise, Phase team move resources because fit we programs is critical, the has our financial financing, we Phase that's forward. anything types where cash to need acquire, having X experience of to forward. the programs into it And that that to well move going in the clinical X, call we as it, from, as let's pre-clinical development, then will from early and proposition, these

Jerry Isaacson

yes, Okay, that. I appreciate

bit you specific level a part you different the where at, the thoughts of a going lot just looking that of as us you’re you and little the joined maybe I but here, of mentioned vision higher on of reason potential if see can company here. the that us your of wonder you So, idea kind more the programs give number a you’ve view -- little of vision this your give of the and kind see for can a you -- is bit obviously Altimmune kind of details company? But

Vipin Garg

really I Thank platform. you. Absolutely, -- tremendous looked at we if start very the I compelling story, technology saw particularly opportunity, our focusing when a on focusing Altimmune,

sense. value So lot it And here peptide and makes our technology a have discussed the the like platform. reason key it like driver internally, we one it we as -- of really synthetic lot I of a is

our are they but lends the itself peptide challenge potent, side you help the you potent need One deliver where well And we can do way of these synthetic with the a effects have retain really immunostimulant, have not them activity and that. such immuno-oncology is chemotherapies, the in technology is to immunostimulants how toxic throughout body. that very the you molecule challenges in

peptides we to allows For able that do very these to act -- them anchors. these to us really are which immunostimulants, take and able conjugate are with we’re small instance synthetic and what mainly do, potent molecules peptides these what like

to is to prevented be throughout to deliver want of with want that, delivered, and toxic diffusing the allows activity activity dispersing this we be in them. now our the the has all, on and us want the where what do and concentrated to we immunostimulantconjugated So is the where from peptide to that you where diluted efficacy, First peptide, throughout systemically Because active two effects not body. lose of the problems: have body. side your don't And top because molecule you there you

cytokine up So inflammatory want you what don't response, you it. end cytokines is where as known --

response, So these effects and it we prevent localize be can where actually needs to activity toxic of the that molecules. side get the

which internal is we’ve so ALT-XXX started our And with program.

to that and acquire As with looking combine immunostimulants part strategy more in-license additional candidates, platform. of product our our can we technology we’re for

to to success. ultimately NasoVAX, financial into and a So, Phase resources Phase make this take really partner The Xb right the has time we the the excited forward ability, and about it NasoVAX on X that. that data commercial find think somebody who and then it’s program

to the are partner this ability We going with a market to worldwide. vaccine need

So, focusing move would we on we be forward. as that

Jerry Isaacson

appreciate I thanks, Okay, that.

presentation? terms also want of some program. a can to you So, announcement dig of your bit I are are Vienna you us on the this to next in in for be more HepTcell in in tell recent presenting you week little kind at expecting What going EASL that what

Vipin Garg

KOLs, in is critical excited with Yes, clear that hepatitis we in it's the the looked another HepTcell B. data we we as meets So, are shared HepTcell a that that data, need marketplace very have become at program as have about immunotherapy focused our

the they as control disease most don’t use really of they cure you no know, the progression we of for there’s and disease the virus. eliminate antivirals the today, -- hepatitis control B As treatments today really the but

approaches life. rest a cure the but of have HepTcell functional these a the for So, in actually what is as or therapy believe that anti-virals eliminate monotherapy other developed your that are we And cure, so either more everybody perhaps is potential marketplace. and you looking is combination in to being for with on can a be likely offers virus -- not

So, be that shows Phase preparing Phase presenting so are for and these our X pave we patients a for the in X forward. immune X really pathway the which will now time, study, be to to Phase response data first this that will strong and this data program very we enter a study larger was would take us

and meet FDA we studies a in to -- be will here US We and preparing IND with XXXX. are start also Phase these open X

this with excited only are ultimately that and existent very but products program not combination partners, conjunction also are in the to that community we do meet we academic So, really with is might trials opportunity therapy our about in whom development. their potential

Jerry Isaacson

that. Okay, thank I you, appreciate

we little So, little obviously start I what to happens in we if discussion here can asset in more [indiscernible]. just be interesting finding in and maybe XXX, might you -- But bit much seems wonder a some terms of what a a right. out see talk this are interested pretty about

So, can little you more? maybe introduction nice we little the I earlier more dig combinations, potential a and in mechanism bit a a bit of indications gave that the think into you can maybe call, us there that was tell about actions,

Scot Roberts

you. to say happy that for Sure,

few the are number tumor a microenvironment working invisible. essentially kind community tumor learned, what So, immune system to was within as that a that, the the dampen system immune last against the years make cell of contains that it tumor over the the of scientific whole is the types and inside

tumor, the tumor that are to use designed by we mount see an immune being allows those balance by produced and is tumor the to immune response. the the changed effective doing within so, system cells. the the And to ALT-XXX now immune antigens inhibitory So of inhibit system

as working are the tumor best. we're allowing antigen of the and provide system all do just it to what to some like specific instead so doing, does people enabling that And we're immune

we expanded to expect to number solid of modalities. be realized checkpoint Certainly tremendous be the tumors able with can inhibitors. with immune with has will that a been success by stimulants. We that combine ALT-XXX combination immune It

immune again be antigens dis-inhibit kill and checkpoint with and XXX so modulatory to [grow] approaches through the And and action with it such and which response through and expect we are to conceivably, the to other able wasn't immune that their viruses to the also well immune -- tumor system combined of we immune as before. And again, the reborn oncolytic a replicate cells. tumor strong ability inhibitors catalyze

Jerry Isaacson

on So the I have be thing, on if the to terms you some I this presented you specific very a just of want Vipin base obviously like that you we touch bit just kind nice upcoming NasoVAX, you other little expect milestones fall. data what might that in would on the front? -- did next can of more wonder in

Vipin Garg

so this we terms this critical Yes, were we’ve process this product. And outreach. really -- data for waiting from this data, now of our value was data become the proposition for of in the perspective

with interested us We discussions number region, But have players, both will helping be this to parties. global to develop product it can worldwide. in and initial talk a we talking forward. We're particular might a product develop and discussions launch of who also -- begun regional this who players,

broad And flu type ease this So potential administration I thinking durability, administration, the be are very to and for in we of we mean of there's durability; are We nobody the open-minded. product. response could responsive. of We're we do to our immune with and pleased in that type that space so that. lot think this of vaccine it of deals. are people, this time persistence talking we're optimistic. best very with It very takes types But of about was a of patient-friendly the of these results terms this the seeing very, opinion discussions

really we prospects stay program. excited So tuned, posted we're of we'll the -- keep but you this about

Jerry Isaacson

is, potentially wrong, spend helpful, And I think correct mentioned if seems those in that of what you both interest -- about I a anything the course, and market. your in in wondered little as and implications and I'm extent on more the you time related to different it you're the think to also durability. on that and of terms response me would partners differences, route be that's to of can both commercial have just One administration. this that's talking thing, you the potentially And be that of usability durability thing, terms of possibly if maybe just as you

a was us little that? So just giving more more detail I wondering, maybe can about spend time you

Vipin Garg

Scot, do want to that. some on color you provide

Scot Roberts

think through afraid needles of a there's about nasal I advantage touched painless, clear certainly it’s uptake of and segment you the certainly on advantage. is administration, vaccine. population delivery, tremendous greater which intranasal that what of using to I the a that mean is is intranasal

is flu that durability a -- these of see cell, of more that the long majority which That where shape. vaccines. muscle twice the just vast it think mucosal what's And T-cell really and vaccines is a immunity. of also, -- work cell. antibody the And unique from that produced approach sequela which And we make of commercial vaccine. instead a allows is whole commercial durability really the because antigen immunity majority RespirVec for as take of the a immune of it our presenting stems platform itself is injection, effective is the types in commercial to the manifest together to to at inside able inside year, is administration from I we intercellular all that expected includes antigen the here and as effects unprecedented the least deliver can out immunity and response of


to Vipin for closing over As time, like the any remarks. call there Mr. Garg no questions are further this I would turn at back

Vipin Garg

today. earnings call. for next look on updating forward Thank in everyone, to again listening you We you, our


today's concludes Thank you. teleconference. This

participation your disconnect a Thank wonderful you this lines time. your have day. may You for at and