Inhibikase Therapeutics, Inc.
Q1 2022 Earnings Call Transcript

Published: 17 May 2022

[Operator:]

Greetings, welcome to Inhibikase Therapeutics’ First Quarter 2022 Financial Results Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Alex Lobo, Stern Investor Relations. Thank you. You may now begin.

[Alex Lobo:]

Thank you, Sherry. Good morning and welcome to Inhibikase Therapeutics first quarter 2022 financial results conference call and audio webcast. With me today is Dr. Milton Werner, Chief Executive Officer; and Joseph Frattaroli, Chief Financial Officer. Yesterday afternoon Inhibikase issued a press release announcing financial results for the first quarter ended March 31, 2022. We encourage everyone to read yesterday's press release as well as Inhibikase’s quarterly report on Form 10-Q for the first quarter 2022, which is being filed with the SEC. The company's press release and quarterly report are also available on Inhibikase’s website at inhibikase.com. In addition, this conference call is being webcast through the investor relations section of the company's website, and will be archived there for future reference. Please note that certain information discussed on today's call is covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Participants are cautioned that this conference call contains time sensitive information that is accurate only as of the date of this live broadcast, May 17, 2022. Actual results could differ materially from those stated or implied by these forward looking statements due to risks and uncertainties associated with the company's business. Information on potential risks and uncertainties are set forth in our most recent public filings with the SEC at sec.gov. The company undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances after the date of this webcast, except as may be required by applicable securities law. With that said, I would now like to turn the call over to Dr. Milton Werner. Milton, you pay proceed.

[Milton Werner:]

Thanks. And thank you, Alex, and thank you for everyone to joining Inhibikase Therapeutics’ first quarter 2022 earnings call. As we kicked off the year, we have worked diligently to advance our clinical and preclinical development programs as well as extend our thought leadership in Parkinson's disease. This past month, for example, we brought together leading KOLs in the field of movement disorders to host an educational investor event. We also participated in multiple medical conferences this past quarter, including the Annual AD/PD Conference where we presented results from our Phase 1 and Phase 1b studies for IkT-148009 as well as the Next Generation Kinase Inhibitors Summit, where we highlighted the rationale behind targeting c-Abl Parkinson's disease. As we look ahead in the second quarter, we anticipate achieving a number of key milestones. Most importantly, we expect to dose the first patients in our Phase 2a study for IkT-148009 in Parkinson's. In addition, we also expect filing our IND application for IkT-001Pro for stable phase Chronic Myelogenous Leukemia, or CML, as well as report preclinical data from at least one study of IkT-148009 in Multiple Systems Atrophy or MSA. Before I dive into our clinical and preclinical pipeline programs, I want to encourage everyone to watch the replay of our Educational Investor event that we hosted last month. Together with our key opinion leaders, we cover the current unmet need, competitive and regulatory landscape in Parkinson's disease as well as our development strategy for IkT-148009 as a potential therapeutic option for patients. The event can be accessed under the Events & Presentations section of our IR website. So now let me start with our lead program, IkT-148009. IkT-148009 is a highly selective non-receptor an Abelson Tyrosine Kinase c-Abl inhibitor. As you may remember, 148009, was designed to have a predictable low-toxicity profile and to have the ability to cross the blood-brain barrier and accumulate in the brain. Animal Studies, including, Chronic Toxicology Studies confirm these designs. We are currently evaluating IkT-148009 in a Phase 1b extension study. The trial is a 3

[Joseph Frattaroli:]

Thank you, Milton. Let me review our financials for the three months ended March 31, 2020 and to -- for the first quarter of 2022, we reported a net loss of approximately $4.7 million or $0.18 net loss per share compared to a net loss of approximately $2.6 million, or $0.26 net loss per share for the first quarter of 2021. Research and development expenses were approximately $3 million – excuse me, for the first quarter of 2022 compared to approximately $2.4 million for the first quarter 2021. The increase was driven by a $2.1 million increase in non-grant-related research, offset by a decrease of $1.2 million in grant related research expenditures and also a decrease of $0.4 million in non-cash stock compensation expense. The non-grant-related research was expended primarily in connection with the company's Phase 1 Parkinson's disease clinical trial. Selling, general and administrative expenses were approximately $1.7 million for the first quarter of 2022 compared to approximately $1.6 million for the same period in 2021. The increase was primarily due to increased headcount resulting in increased compensation expense of $0.2 million, increased legal fees, board fees, investor relations and consulting fees of $0.1 million and a net increase of $0.2 million for other normal operating expenses offset by decreased non-cash stock-based compensation expense of $0.4 million. As of March 31, 2022, Inhibikase had approximately $36.6 million in cash and cash equivalents, we expect that our existing cash and cash equivalents will be sufficient to fund operating expenses and capital expenditure requirements into the third quarter of 2023. That concludes our financial statements. I'd like to hand the call back over to Milton for closing remarks.

[Milton Werner:]

Thank you, Joe. We remain very excited about our progress and goals for the second quarter and anticipate achieving multiple milestones across our clinical and pre-clinical programs as we seek to significantly improve the lives of patients suffering from devastating neurodegenerative diseases. We expect to initiate our Phase 2a study for 148009 submitting an IND application for 001Pro and report data from at least on preclinical study on MSA program in this quarter. And despite the challenges posed by the current market conditions, we believe that taken together, all of these efforts will position us for success in the long-term. To our shareholders, we continue to appreciate your unwavering support, and we will continue to work tirelessly to drive shareholder value and improve patient outcomes. I would now like to open the call to questions. Operator?

[End of Q&A:]

Thank you. [Operator Instructions] Okay. There are no questions at this time. That will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.