$KIN Kindred Biosciences, Inc.'s (KIN) CEO Richard Chin on Q2 2020 Results - Earnings Call Transcript
Aug. 8, 2020 1:10 PM ET | About: Kindred Biosciences, Inc. (KIN)
Q2: 08-05-20 Earnings Summary
Press Release
EPS of $0.65694 beats by $0.50 Revenue of $39.57M (3,101.21% Y/Y) beats by $27.52M
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Earning Call Audio
Kindred Biosciences, Inc. (NASDAQ:KIN) Q2 2020 Results Earnings Conference Call August 5, 2020 4:30 PM ET
Company Participants
Richard Chin - Chief Executive Officer
Wendy Wee - Chief Financial Officer
Katja Buhrer - Vice President, Corporate Development and IR
Conference Call Participants
Jon Block - Stifel
Balaji Prasad - Barclays
Brandon Folkes - Cantor Fitzgerald
David Westenberg - Guggenheim Securities
Ben Haynor - Alliance Global Partners
RK - H.C. Wainwright
Nathan Weinstein - Aegis Capital
Operator
Welcome to the Second Quarter 2020 Financial Results Conference Call and Webcast for Kindred Biosciences. At this time, all participants have been placed on a listen-only mode. At the end of the prepared statements, participants will have the opportunity to ask questions.
Please note that the remarks today will include forward-looking statements and that actual results could differ materially from those projected or implied in our forward-looking statements. For a description of important factors that could cause actual results to differ, we refer you to the forward-looking statements in today’s press release and the note on forward-looking statements in the company’s SEC filings.
It is now my pleasure to turn the call over to KindredBio CEO, Richard Chin. Dr. Chin. You may please proceed.
Richard Chin
Thank you, Operator. Good afternoon. And welcome to our second quarter 2020 financial results call. Joining me today from the management team of KindredBio are Wendy Wee, our CFO; and Katja Buhrer, our VP of Corporate Development and Investor Relations.
Before I start, I would like to thank our Co-Founder, Denise for her incredible contributions to KindredBio. Denise has been instrumental in growing KindredBio into one of the world’s leading veterinary biopharmaceutical companies and I look forward to our ongoing collaboration on the Board, as we continue to realize our vision for this pioneering company we have built together.
Thanks to our recent strategic decisions, we are strongly positioned for success. Our focus is on our highest value programs and with the OpEx expected to drop to $10 million per quarter by Q4, we have the crash runway to see us through important milestones and thereby realize the value of our late-stage assets.
Turning to our pipeline. We are pleased with our progress in the second quarter. Manufacturing for our IL-31 antibody, which now has the user name, tirnovetmab has been going well and we continue to expect the pivotal study to start this year. Manufacturing scale up is tracking to our expectations.
As you know, atopic dermatitis is a very large attractive area. There are couple of approved products that in aggregate sell more than $800 million per year and they are still growing. To put this in perspective, $800 million is a size of a well selling human product, but instead of $1 billion to develop a drug, we can do so for $1,100 of that cost.
Now the currently marketed products are excellent drugs, but we think they are vulnerable to competition. Our market research clearly demonstrates that veterinarians are looking for additional options.
The current products obviously don’t work for every patient. Tirnovetmab with a high-affinity second-generation product and it has the potential to be very successful. We believe that the anti- IL-4R antibody could also be a blockbuster, given its advantage in terms of direct effect on the disease pathophysiology.
Earlier in the pipeline, we have other product candidates that we believe will be very attractive as well and those products also have potential to capture a significant share of this multi-billion dollar market. So far we believe, we are ahead of our competition in this field with the exception of the current incumbent and we are very excited about our highly promising dermatology pipeline.
