Earnings call transcript: Alligator Bioscience Q2 2025 sees stock dip

Alligator Bioscience AB (ATORX) reported its financial performance for Q2 2025, revealing an operating loss of 22 million USD and operational costs of 4 million USD. The company’s financial health shows concerning signs, with InvestingPro data indicating a weak gross profit margin of -196% and an overall financial health score of 1.47 out of 10. Despite positive developments in its product pipeline, the company’s stock fell by 4.43% to 6.14 USD, reflecting investor concerns over its financial results.

Key Takeaways

• Alligator Bioscience reported a 22 million USD operating loss for Q2 2025.
• Stock price declined by 4.43% post-earnings announcement.
• Metazolumab is ready for Phase III trials, receiving significant regulatory endorsements.
• HLX22 received orphan designation in Europe, with potential peak sales estimated at 10 billion USD.
• The company aims for a cost reduction target of 20-25 million SEK per quarter in H2 2025.

Company Performance

Alligator Bioscience’s Q2 2025 results showed a challenging financial quarter with a significant operating loss of 22 million USD. The company’s focus on its lead asset, Metazolumab, and the out-licensed product, HLX22, highlights its commitment to advancing its product pipeline despite financial hurdles. The company’s strategic focus on the metastatic pancreatic cancer market and the promising developments in drug trials underscore its potential for future growth.

Financial Highlights

• Operational costs: 4 million USD for Q2 2025.
• Operating profit: -22 million USD.
• Current liquidity: Approximately 24 million USD.
• Completed a TU12 raise of 61 million SEK.
• Reversed write-down of HLX22 asset by 12 million SEK.

Market Reaction

Following the earnings announcement, Alligator Bioscience’s stock price fell by 4.43%, closing at 6.14 USD. This decline reflects investor apprehension about the company’s financial performance, despite promising developments in its product pipeline. The stock has experienced significant pressure, with InvestingPro data showing a dramatic 97.3% decline over the past six months. According to InvestingPro’s Fair Value analysis, the stock appears to be undervalued at current levels. Discover more insights about undervalued opportunities at Most Undervalued Stocks.

Outlook & Guidance

Looking ahead, Alligator Bioscience is preparing for Phase III trials of Metazolumab and continues to explore potential partnerships and investigator-initiated trials in multiple indications. The company aims to maintain financial flexibility through the end of 2025, with a focus on reducing operational costs and improving its cash runway. InvestingPro analysts project the company will return to profitability this year, with expected sales growth and an EPS forecast of 0.01 USD for FY2025. Get access to the comprehensive Pro Research Report, available for 1,400+ top stocks, to dive deeper into ATORX’s financial health and growth prospects.

Executive Commentary

CEO Soren Reinholdt emphasized the importance of Metazolumab, stating, "We are now at a very fortunate situation that we can explain exactly the link, exactly the mechanism of action of Metazolumab." CFO Johan Gilius highlighted the company’s financial strategy, noting, "We have a financial flexibility for the rest of 2025."

Risks and Challenges

• Continued financial losses may impact investor confidence and stock performance.
• High operational costs could pressure the company’s financial resources.
• Market saturation and competition in the pharmaceutical industry pose challenges.
• Regulatory hurdles and trial outcomes could affect product launch timelines.
• Macroeconomic pressures may influence the company’s financial health and strategic initiatives.

Q&A

During the earnings call, analysts inquired about the company’s business development discussions and the anticipated scale of the Phase III trial for Metazolumab. The management reiterated its commitment to exploring additional indications and potential partnerships to enhance its market position.

Full transcript - Alligator Bioscience AB (ATORX) Q2 2025:

Kjeta Hague, IR and Communications Manager, Alligator Biosciences: So hello, and welcome to Alligator Biosciences interim report call for the second quarter of twenty twenty five. My name is Kjeta Hague. I’m the IR and communications manager at Alligator, and I will be introducing today’s call. With me today are our CEO, Soren Reinholdt, and our CFO, Johan Gilius. They will walk you through the latest developments from the quarter and the upcoming use flow, after which they will be happy to answer any questions you may have.

Now before we begin, I would like to share a quick reminder that during today’s call, management may make forward looking statements that involve known and unknown risks, uncertainties, and other important factors beyond the company’s control that could cause the company’s actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Actual results and the timing of certain events may differ materially from the results or timings predicted or implied by such forward looking statements, and reported results should not be considered as an indication of future performance. Please note that these forward looking statements made during this call speak only as of today’s date, and the company undertakes no obligation to update them to reflect subsequent events or circumstances other than to the extent required by law. This call is being webcast and will also be made available through the Investor Relations section of our website.

Now with the formalities out of the way, I would like to turn the call over to you, Sara.

Soren Reinholdt, CEO, Alligator Biosciences: Thank you, Greta. And once again, welcome to Alligator’s Q2 twenty twenty five earnings call. It’s a pleasure being with you again. Could we have the first line of the session, Greta, to sum up some of the key updates from the quarter? I think it’s important to first and foremost mention that we have advanced nisazolumab, our lead asset according to plans.

During the quarter, we have been granted a so called pediatric waiver from EMA, the European Medicines Agency. And more importantly, the EMA has also as part of our scientific advice process with the EMA endorsed both the Phase three protocol and the Phase three dose. Likewise, in an interaction during Q2, FDA also confirmed nine hundred microgram as the recommended Phase III dose. If we take a broader look at the regulator, we advise that we have received on visexualimab both in terms of Phase III protocol, Phase III dose, CMC and also the nonclinical Phase III readiness of metazolumab. There is a very high degree of alignment between what we’ve heard from European agencies, EMA, Polialik in Germany and FDA.

And this, of course, forms the basis of a single global Phase III development program for metasalumab, which is very important. To facilitate this, we have also manufactured GOP material with an updated process to support both the Phase III study but also the commercial supply of the molecule. And that process is very nicely developed, been validated to its current use, and the drug supply for the Phase three study has been secured. Further on nisazolumab, we’ve had the pleasure to discuss new biomarker data at ASCO, the American Society of Clinical Oncology Conference in Chicago, and also a couple of weeks ago in Barcelona at a European meeting. This biomarker data importantly supports future patient selection strategies.

It validates the mechanism of action and immune activation of metazolumab and this together with the clinical trial data that we have released earlier continues to strengthen the case of metazolumab as a relevant first line medication in metastatic pancreatic cancer. Together this data has also strengthened the academic interest the molecule and as we alluded to in the Q2 report, we have a number of proposals for so called investigator initiated clinical trials, that we are evaluating, and we will engage in a in a number of selected trials during, during the second half of of twenty twenty five to explore further and strengthen further the mechanistic understanding of metazolumab both in pancreatic cancer, but definitely also in an effort to, to increase the strength of the molecule in other indications. If we look at the more finance business development side of things, We raised 61,000,000 SEK in our t o 12, with that which is a clear sign of continued shareholder support. Our partnering discussions about metasalumab and also a few of other assets have continued both at ASCO and Bio and and following that. And then importantly, in in alignment with our our cost reduction program, we have now reduced the burn rate substantially below what we have seen in previous years where we have supported both OPTIMIZE one and the CMC development and manufacturing, and we are now expecting a burn rate in the range of SEK 20,000,000 to SEK 25,000,000 per quarter.

And then, of course, our out licensed product HLX twenty twenty two has received orphan designation in Europe and have also initiated a second phase two study in HER2 positive breast cancer. So all in all, a lot of positive developments in Alligator during Q2 twenty twenty five. So if we could have the next slide, Gleeson. So just to remind you that mitazolumab is our Phase III ready lead asset. So just discussed strong clinical data, strong safety data, strong biomarker data and generally Phase three ready.

We’re also developing ATO4066, which is a second generation or third generation actually CD40 bispecific antibody. And I’m pleased to share with you that the data from metazolumab has really generated increased interest in in this molecule and interest that led to a number of advanced discussions both at ASCO and also at BIO. And then in the partner programs, we already discussed HLX-twenty twenty two, which is now, starting a global phase three study in gastric cancers. So still a pipeline focused on metazolumab but with a number of strategic options to provide and support long term shareholder value in the company. So the next slide, please.

This is really to just to remind ourselves that mitoselumab actually does make a significant change in first line metastatic pancreatic cancer. Not only do we change the or add approximately four months to the median overall survival in this very hard to treat cancer. But importantly, when we compare to FOLFIRINOX, the chemotherapy backbone that these patients are treated with, we see significant increases in the survival rates at eighteen and twenty four months. So that if you get mituximab in combination with the chemotherapy, your chance of being alive eighteen months after diagnosis is double that of chemo alone and up to three times at twenty four months. So really strong data.

And why do we believe that this translates into Phase III success? I think this is also important to emphasize. We had previously showed that these outcomes statistically significant by end of the trial comparison. We published those data earlier in the year. Very importantly, the patient population that we used in this study is very, very similar, if not exactly similar to what you can expect in a global phase three study.

Median oral survival is going to be the primary endpoint in that phase three study and we’ve shown a significant delta from chemotherapy there. And then you remember we have this treatment schedule where we give a primal dose of nisazolumab and that is a treatment schedule that we are taking with us into Phase three. Hence, all the parameters that I mentioned bodes well for a positive outcome of the Phase three study. If we take the next slide, I just wanted to maybe talk a little bit about some of the biomarker data that we discussed at ASCO earlier the summer here, early June. It’s, of course, always important to find, first of all, markers that, correlates your or relates your mechanism of action and your clinical and your clinical, outcome very well.

And then if you can even find biomarkers where you can start to to preselect patients based on a certain, for instance, a gene signature. So if we if we if we look at this slide here, if we just look at the middle, way that metasalumab works and we discussed this at several quarterly calls is threefold. First of all, metasalumab start to degrade the stroma in the tumor, making the tumor more permeable to chemotherapy to subsequent the misocelotamab and also to T cell infiltration. And then misocelotamab strengthens the immune system to activate and educate T cells to eventually kill the tumor cells and provide the patients with a clinical benefit. So one very important step in actually proving this hypothesis is to go back in the tumor of patients from the clinical study and do comparison in their tumors before treatment and after treatment.

And some of the data that we presented at ASCO you can see on the right side here and without getting too technical, what this actually show is that in a number of patients that did respond to metazolumab at a durable clinical benefit, we could see that when you compare tumor biopsies before the start of treatment and around the time of response, there was very, very strong indication of a positive activation of both the dendritic cells, the macrophages, and also the T cells. So this fits very, very well with specific mechanism of mesosalumab to activate the morilide and T cell mediated immune system. What we have on the left hand side here is a piece of work that is very important and we may be able to select patients on that in the future of metazolumab development where we show that patients with a certain gene signature that is exactly associated with the fibrosis or the connective tissues in the tumor that patients with a certain gene signature here respond significantly better than patients that do not have this gene signature. So that’s the patient indicated by the green line here in this Kaplan Meier plot versus the patients in red here that don’t have the signature.

So a very important piece of data that, again, confirms the mechanism of action with of miricelumab and also provides some sort of strategic guidance on a patient stratification strategy in the future. So very important two pieces of data here. And we have more biomarker data than we expect to be able to publish in scientific journals within the coming period. So I will leave you with this piece of data on nifazolumab and just remind you that we also at the ESMO meeting in Barcelona a couple weeks ago, presented the data showing a very clear dose relation between the four fifty and the nine hundred microgram dose cohorts showing that the nine hundred microgram was significantly better than the four fifty, hence leading to FDA endorsement of nine hundred as the clinical dose for Phase three. But also importantly, this data underscores the fact that you have actually when you have a dose effect of something also me like misuseldimab in this case, of course, also means that that that there is a direct contribution of, of the drug to the clinical results you see.

So a summary of the regulatory status on this slide just to remind ourselves and repeat that during Q2 FDA endorsed the nine hundred microgram phase three dose and that EMEA importantly gave us input on the phase three protocol dose and the phase three readiness of metazolumab that was in line with what we’ve seen from FDA. And then we can remind ourselves that from the Phase three study, we now have nine hundred microgram agreed as the Phase three dose. We have a study design protocol that is acceptable for Phase three and subsequent registrational applications in both agencies and the nonclinical program is adequate also for Phase III and subsequent applications. And on CMC, have agreement with analytical method specifications, comparability strategy, etcetera, for the Phase III material and these data and the strategy is adequate for BLA and MAA submission when we get to that to that point. Okay.

Enough said today about metazolumab. Let’s just let’s just take a little bit of time on on HLX 22. I understand that this is this is becoming a hot topic discussing, discussing ADAGATOR. So the antibody itself is a monoclonal anti HER two monoclonal monoclonal antibody that is differentiated from existing HER2 molecules based on its epitope. It’s currently being developed by Shanghai Hetnios in a number of trials.

The drug was originally developed by AppClone in collaboration with Alligator. Hence, Alligator is entitled to 35% of of Epclone’s revenue from their partnership with HLX22. There’s been a lot of numbers floating around estimates, especially by Epclone on what could the peak sales of HLX22 be. It’s currently being developed in gastric cancers in phase three and also in HER2 positive breast cancer. Numbers have been as high as 10,000,000,000 US dollars has been mentioned.

Alligators, without mentioning any numbers, our estimation are a bit more conservative, but we think that this molecule provides or constitutes a potential significant long term upside to the company. In terms of development timeline, as you understand, this is developed by Hetlioz and we no reason to second guess development timelines that are being communicated by HET News. And in terms of, just to make that absolutely clear, in terms of our communication policy around this molecule as as I think I indicated several times we we are working this molecule, owning this molecule, access to this molecule at an arm’s length. So we are going to report, significant regulatory events such as orphan drug designations, start of clinical trials, so on and so forth. But we are not going to communicate, on or comment on market estimates like the one you have on the screen here.

So let’s go on with this. I hand over the word to Johan to take you through the Q2 financials.

Johan Gilius, CFO, Alligator Biosciences: Thank you, Soren. Happy to be on this call. Focusing on the Q2 numbers then, we have incurred operational costs, more general operating costs, of course, but also then the clinical trial cost of OPTIMIZE one and the IMP production then for the Phase three. All in all, that has incurred $4,000,000 in costs for the Q2, but we have also then made a reversal of the write down relating to HLX 22, hence, why we’re coming with operating profit of minus 22. I will come back to the HLX 22 in the next slide.

We have also another non financial item, which is related to the TU12 and TU13, which were issued free of charge in connection with our units issued in February. And these are the revalued, in particular, the TU-thirteen, that still remain at the balance sheet end at fair market value and hence provide some noncash financial items during the quarter. Also, be clear that we have as a part of the redundancy program that we launched in December, have now seen the remaining employees leaving the company during the Q2 then and hence, will also lower the cost going forward. So please move over to the next slide, please, Greta. So what you can see here on the graph that we all have a trading effect on the operating cost going down.

But as mentioned before, we are aiming towards 20,000,000 to 25,000,000 per quarter in H2 twenty twenty five and onwards. And I think that is relating back to the optimized cost OptimizeOne trial cost is wrapping up. And IMT has more or less been manufactured, and there are some stability costs that will be during the second half then. We have a liquidity of around $24,000,000 and we have then funds that we believe will come in from the TU13 together with the liquidity position that we have now that we have financial flexibility for the rest of the 2025 then. And of course, as we always say that we are looking into different venues then for financing, including the TU-thirteen, but also other avenues of financing.

When it comes to HLX 2022, I think it’s worth mentioning then that we have revalued the asset, and we have done the reversal of the write down. And that has then come up to a number that with 12,000,000 in, let’s call it, a write up. This is also limited by the fact what’s the initial book value of the asset was. We believe there’s more value to the asset on top of that, but that’s according to the regulatory environment that we under IFRS, etcetera, we are not allowed to do that at least as not as a first step here now. With that, let’s move over to the next slide, please.

So just as a starter then for TU-thirteen, this process will be very similar to the TU-twelve. We will have a pricing period. In this case, we’ll start at August 14 and end twenty seventh August. And we will then be able to communicate the pricing in around the August 28 then. And as also for the TU12 then and linked to the reversal of the share split that we did, we need to you need to have 1,000 borrowers to sign up for one new share then.

And that can then happen during the exercise period that starts September 1 and ends around the September 15. And as noted here, there’s a last day of trading if you want to buy or sell shares or sorry, the Tier 13. And of course, some of the banks have different cutoff dates. So you please make sure that you’re not are missing out on this opportunity. And we can hopefully then announce something around the September 17 with the outcome of this exercise of the TO-thirteen.

With that, I think I hand over to you, Seren.

Soren Reinholdt, CEO, Alligator Biosciences: Yes. Thank you. Yeah. Basically, as I think, we’re moving forward with with niselumab. So far, we have we have completed all the milestones with the drug for 2025 as expected, including data readouts and and regulatory regulatory interactions.

Right now, what we are focusing on is, of course, getting the last bits and pieces for the Phase three readiness in terms of CRO discussions and what have you getting that ready. And then the main focus is of course on partnering and business development discussions that are ongoing both with long term interested partners and also with new partners that have entered the process just recently. And just to reiterate that we are continuing several tracks of discussion, both, a global partnership, but there might also be opportunities or solutions that that includes one or two, regional partnerships for metasalumab. And I’m sure that that you will have some, some questions about that. So I think I’ll I’ll save my voice for that and go directly to the questions.

And we will do this as we normally do. We have received a number of questions. I will go through them. I will try to group them a little bit as as as as good as I can and answer some of them and and defer some of them to you, Johan. So you better be you better be on your toes.

The first question here is from Philip Lindquist at at Redeye directly on on the question of of business development, and it goes like this. Can you comment on the current status of your business development discussions around metasalumab and whether you see a licensing agreement or trade sale as the most likely path forward at this point? As I said, we are discussing with several potential partners, both global companies and also more regional companies. And we are, even as late as this week, welcoming new, new potential partners into our into our data room, in in a diligence effort. So that is, is progressing as we as we as we expected.

These things and I’m telling you for twenty five from ten to five years in the industry, these things are, of course, always progressing slower than than you would would like them to. But that is the name of the of the game here. Whether a licensing agreement or trade sale is the most likely outcome, that’s impossible for me to comment on, first of all, because it could be either, and I can simply not tell you what is more likely. And secondly, I’m not going to stand here and reveal any potential negotiation tactics and put pressures on potential partners here. So I think we leave this part of question sort of unanswered.

Of course, the financial dynamics in when you look at the intrinsic value of, of the program and the market cap of indicator might tilt you towards thinking that a trade sale might be the most likely. But that’s from a pure financial angle. Then we go on with Filipia. You recently attended BIO International and National GI. Yes.

And before that, ASCO. Could you share your main impressions or takeaway from these conferences, particularly in terms of partner interest and emerging trends relevant to Alligator? And I think there’s a few questions about that later on. But first of all, I think the data that we showed both at ASCO and at ESMO GI, and I’ll review some of it here, and some of it has been discussed on the CDA as it’s not yet been published. But I think we are now at a very, very fortunate, in the very fortunate situation that we can explain exactly the link, exactly the mechanism of action of metazolumab.

What we see in subsets of patients, and I showed you some of the data here, and the effect on on clinical outcome in in these patients. And being able to mechanistically make that connection is is, of course, very, very convincing, and something that that is important for potential partners and and is highly valued in their in their assessment of of the the drug. And I I think there is a question from, from Kevin about, about why we stand out with, with, from other CD40s, and it’s clear that none of the CD40 antibodies that has previously been tested in pancreatic cancer have shown such a manageable safety profile as metazolumab, which is also something that has been again discussed at the scientific meetings and nobody has really seen the long term survival benefit with other CD40 antibodies as we have seen, primarily because the patients have not tolerated the drugs for so long is assessment my there. And now that you asked, Philippe, let me also mention that nisazolumab and OPTIMIZE-one was specifically mentioned at the keynote talk at ESMO GI only last week, emphasizing the study as being a very sort of exemplary piece of work taking preclinical evidence, combining that with a very good molecule and then conducting a high quality trial.

So I think that’s a kudos to the entire Alligator team. Now, let’s move on here. Another question from Philip. From a CMC and regulatory perspective, would you consider mitoselumab Phase III ready today? Or are additional activities required before initiating a pivotal trial?

Yes. We would definitely see nisazolumab as as phase three ready. Yet, there is still a few things that needs to be done. The drug product and the drug substance is on is on so called stability studies that needs to be completed during during q q three and q four. And there’s a few, few bits and pieces here that needs to be done.

But all in all, we are ready to start a phase three trial once we have a partner on board. Then we have a couple of questions for you, Johan. Can you elaborate on the financial situation? How critical is the contribution from the TO13s to secure additional funding?

Johan Gilius, CFO, Alligator Biosciences: I think we stick with the previous guidance that we have said that we need some uptake, prudent assumptions around the TE 13 to manage 2025.

Soren Reinholdt, CEO, Alligator Biosciences: Yeah. And and also to you, how much of the loan to Fenya remains?

Johan Gilius, CFO, Alligator Biosciences: That’s $3,023,000,000 SEK in in a in an in the the loan as such, And then we have both prepaid certain additional costs and also some of the costs are deferred to the end of the loan period.

Soren Reinholdt, CEO, Alligator Biosciences: Okay. And a third one to you. Now we have you here, Johan. Could you give some more details on the condition under which the acquired positive phasing in development projects have improved? I guess that’s the write off on in the books and that relates to HLX22.

But maybe you can give an explanation Yes, exactly.

Johan Gilius, CFO, Alligator Biosciences: I did some explanation during the slides. But in addition to that, I’ll give you some background that one of the key assumptions that has changed is that the molecule now is in Phase III for gastric cancer, which, of course, then lower the risk and move everything forward. And secondly, they have now introduced a second indication in breast cancer, which also then added value to the value assumptions that we have provided them.

Soren Reinholdt, CEO, Alligator Biosciences: Yep. Absolutely. And then I think, this is, from Red Eye. Richard here. A little bit of a long question.

In the latest press release, AppClone mentions a peak sale potential of 10,000,000,000 US dollars for HLX twenty twenty two, which corresponds to 500,000,000 US dollars. This implies a royalty rate of around 8% when factoring in alligators 35%. Is this a reasonable interpretation? Think I’ll give this a shot. First of all, as I said, the DKK10 billion, I think our assumption or our estimate is a little bit more conservative than DKK10 billion, although this is a definitely a significant opportunity.

I would say, although we cannot comment on any of the deals, especially not those between or the financials of any of the deals, especially not those between Epclone and and and Hetmus, I think I think the the 500,000,000 includes the 35% that that needs to be paid to Alligator. And from there, you can make your own assumptions around the the top royalty rate of that contract. Can you agree with that, Johan?

Johan Gilius, CFO, Alligator Biosciences: I fully agree.

Soren Reinholdt, CEO, Alligator Biosciences: Then we go to a set of questions from from the Kempen or financial team. And I think we have already touched on this, but I will bring it up again. Can you please remind us of how metaselumab safety and efficacy profile differs from other CD40 agonists and whether this has been affecting your BD discussion? Yes, again, we see metazolumab with a very manageable safety profile, not adding any significant tolerability signals on top of FOLFIRINOX. And this is at a premedication regime of only antihistamines and anti leukotrienes, So no corticosteroids here.

So first of all, a very manageable safety profile which really sets metazolumab apart from both and second other first and second generation CD40 antibodies. And this has, of course, been a significant factor in our BD discussions because these side effects has really hinted the continued development of many of these CD40 antibodies. And in terms of efficacy, what we see there now is that we have patients that have been on drug for over three years. We have seen patients that have been on only metazolumab, no chemotherapy for a year and a half up to two years. And together with the general efficacy data that we discussed today, this simply sets metasalumab apart from other CD4 agents.

Then there’s another question here from Sebastian and team. In terms of the Phase III design, to what extent has there been agreement on the final design with FDA? We have agreed the design with FDA and we have also agreed that design with EMA. And I would say the feedback from the two agencies are very much aligned. Can you provide some insights to the number of patients that would be retired from such study?

Yes, we are talking around five fifty patients. So this is, of course, a significant trial, but still smaller than for instance what Ipsen did with their NEPOLY-three study, which as I recalled it was around 800 patients. The study is going to be, of course, randomized across two arms, but it’s not going to be blinded, which is, of course, an operational benefit from an educator and a partner. And a single study is sufficient for approval. The next question also from Sebastian and team here.

Given the results of CD40 and PDAC, has there been any interest of a partner to take over the asset for development in other therapeutic areas? I think I think I’ll answer this question in two parts. No, there’s not been anybody interested in taking over metazolumab outside of PDAC as the primary driver. There’s definitely been significant discussions on what are the what is the next set of potential indications where metazolumab would make sense. That’s the first part of the answer.

The second part of the answer is that coming back to what I said before, there is significant interest from investigators, physicians around the world to explore metazolumab in other indications. And we are in dialogue with a handful of these to select a set of trials that can do one or two things, either give us more understanding of how metazolumab works in patients with pancreatic cancer, or secondly, and maybe more interesting in a global perspective, by metazolumab as an add on to existing therapies in other indications that could be gastric cancer, could be biliary tract cancer, that might even be breast cancer. So we are pursuing these opportunities and expect to have some news about this during the last two quarters of the year. Then a very important question here also from this insightful team here. Do you anticipate that the emerging data from RAS inhibitors or KRAS inhibitors in second line is likely to change treatment paradigm in first line PDAC?

Think there is no doubt that the KRAS inhibitors will be approved in second line. And I think eventually they will also be approved in first line, of course, at a at a later time point than second line. This will be an add on. I think I think we have to realize that that the chemotherapies are are always going to be the backbone. I’m sure that the KRAS will become add ons to to, to chemotherapy in in first line, and and add benefit to the patients.

But I’m also pretty sure that if you are going to see the sustained clinical benefit that we see in OPTIMIZE-one, then you need an agent added on to chemotherapy KRAS inhibitor that activates the immune system. So regardless of the advent of KRAS inhibitors in the second and first line metastatic pancreatic cancer, I’m absolutely sure that there is an important role for me to set them up to play these patients in the future. And that’s why we’re developing the drug. Then Johan, there is a question for you. What would be the cash runway based on the current spending and expected subscription of the TO-thirteen warrants?

Johan Gilius, CFO, Alligator Biosciences: I think we already answered that, but it’s with a prudent assumption around the TO-thirteen and the the cash band that we also then disclosed to $22.95 per quarter, we think that we have the runway for end of twenty twenty five.

Soren Reinholdt, CEO, Alligator Biosciences: Good. Then we have a couple of questions here in the the QA webinar from the half maker. K. Yeah. The r and d is extremely well, but what is your plan b if no agreement is signed before t o thirteen?

As the proceeds from t o thirteen might just get you proceeds of 10 to 20,000,000 based on the share price and probably high cost for any guarantors willing to undertake it. And a similar question, how much more from the same headmaker here, how how much more do you think will come in from the TO-thirteen, Johan? I think those are for you.

Johan Gilius, CFO, Alligator Biosciences: Yes. A little too early to say, but I think we have already started the work. And of course, we have a plan A that we’re working on, but also then looking very prudently into different other scenarios then. But let us come back to that. I think it’s too early to say.

Soren Reinholdt, CEO, Alligator Biosciences: Yes. And then, there are no more questions, in today’s call. So thank you, Johan. Thank you, Greta, and thank you, especially to all those of you who have, followed the call. And we look forward to continue updating you with data from imetazalumab and the rest of the portfolio.

So thanks a lot, and have a lovely summer.

Johan Gilius, CFO, Alligator Biosciences: Thank you. Happy summer.

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