Analyst Conference Summary

Bind Therapeutics

conference date: May 9, 2016 @ 5:30 AM Pacific Time
for quarter ending: March 30, 2016 (Q1, first quarter 2016)

Forward-looking statements

Overview: Bind Therapeutics is a small-cap, clinical stage biotechnology company with no commercial products approved for sale yet. Also, it has received bankruptcy protection, despite having a significant cash surplus.

Basic data (GAAP):

Revenue was $1.9 million, down sequentially from $6.4 million, and down from $4.4 million year-earlier.

Net income was negative $12.7 million, down sequentially from negative $7.6 million, and down from negative $8.3 million year-earlier.

EPS diluted was negative $0.61, down sequentially from negative $0.37, and down from negative $0.44 year-earlier.



Conference Highlights:

"Despite our financial challenges, we remain committed to advancing our new R&D strategy of applying our Accurins® technology to develop innovative medicines and we have made significant progress during the first quarter," said Andrew Hirsch, president and chief executive officer at Bind Therapeutics. "In order to address these challenges, we took difficult but necessary steps to substantially reduce our operating expenses, focus the business, and explore strategic and financial alternatives. Despite these efforts, we filed for Chapter 11 protection to provide the necessary time to pursue these alternatives to the benefit of all stakeholders. While the Chapter 11 process can be distracting, we don't anticipate any major disruptions in our business operations during this process."

Restructuring to reduce operating expenses to about $6 million per quarter. The R&D spend will be reduced partly by winding down the BIND-014 program. In the last year it has become more difficult to get funding for biotechnology companies. Has engaged an investment bank re strategic and financial alternatives. Tried negotiating debt with Hercules, but instead they demanded accelerated repayment.

Three key points: (1) will remain open for business (2) will move through Chapter 11 as quickly as possible (3) commitment to success and building value for all stakeholders.

BIND has collaborations with Pfizer Inc., AstraZeneca AB, F. Hoffmann-La Roche Ltd. and Merck & Co., or Merck to develop Accurins based on their proprietary therapeutic payloads and targeting ligands. Bind also has proprietary, unpartnered programs.

In April 2016 topline data from iNSITE 1 and 2 BIND-014 trials in SNCLC, cervical cancer and head and neck cancer. "The iNSITE 1 trial is squamous histology non-small cell lung cancer exceeded the protocol defined endpoint of greater than 65 percent 6-week disease control rate." Bind Therapeutics is seeking a collaborator for further development. But Bind-014 is facing a "changing competitive landscape."

The lead candidate is BIND-014, an Accurin that contains docetaxel, for prostate cancer, which is fully enrolled.

In collaboration with AstraZeneca AZD-2811, containing an Aurora B Kinase inhibitor, went into Phase 1 in Q4 triggering a $4 million milestone payment. Illustrates a case where accurins help a drug be more specific to its target.

Pfizer will option its first Accurin candidate, of 2 planned, for solid tumors. Bind expects to receive a $2.5 million option fee. Initiating IND-enabling studies.

By the end of 2017 Bind hopes to have preclinical proof of concept data for 3 programs. GI malignancies with guanylate cyclase-C receptors; delivery of single double stranded RNA fragment to achieve target knockdown; and achieving endosomal escape with RNA.

In February Bind entered into a collaboration agreement with Synergy Pharma for accurins for GI cancer.

Bind has demonstrated the ability to encapsulate highly charged particles, which had been historically difficult. Evaluating both ligands and payloads for new therapies.

See also the Bind Therapeutics Pipeline page

Revenue in the quarter was from reimbursement of R&D expenses by partners and from partial recognition of license fee and milestone revenue. Recognized over a performance period.

Cash and equivalents balance ended at $21.5 million, down sequentially from $36.9 million. Debt is $13.4 million. No runway guidance will be given during the Chapter 11 bankruptcy.

Operating expenses of $14.8 million consisted of $11.2 million for research and development and $3.6 million for general and administrative. Loss from operations was $12.9 million. Other income was $0.3 million.


Chapter 11 next steps, possible outcomes? We have a cash collateral hearing on May 18. We will argue that Hercules is protected by the cash and other company assets. The ruling on that will tell us how much of a runway we have to come up with a plan to emerge from Chapter 11.

Potential to earn any milestones this year? We are not giving specific guidance as it depends on their development plans.

AZD-2811 enrollment? That would be up to AstraZeneca.

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Disclaimer: My analyst call summaries may include both our condensations of statements made by company representatives and my own analysis. They are not covered by any warranty. I cannot guarantee anything said by company representatives is true. I try not to make errors, but it is possible. This is investment journalism, not financial advice.

Copyright 2016 William P. Meyers