Exscientia plc (Nasdaq: EXAI)
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Recent developments in the Company’s pipeline, collaborations,
and operations, as well as financial results for the second quarter
and first half 2022, are summarised below. In addition, Exscientia
will host a conference call Thursday, August 18 at 1:30 p.m.
BST / 8:30 a.m. ET to provide an overview of the
company’s pipeline and corporate strategy.
“In the first half of 2022, we delivered on major new and
existing collaborations, advanced our pipeline programmes, and
marked the 10-year anniversary of Exscientia’s founding. Over the
past decade, we’ve pioneered an AI-driven approach to modernising
drug discovery and development, and it was fitting that this
quarter we also announced topline data from our EXS-21546
programme, one of the first AI-designed molecules to enter clinical
trials,” said Andrew Hopkins, D.Phil., Exscientia's founder and
Chief Executive Officer. “With over $730 million in cash, we
believe we are in a strong position to deliver across our portfolio
of drug projects for the long-term. Our strategy creates an agile
interplay between our internal pipeline and partnered programmes,
enabling us to move candidates between the two depending on the
best fit for Exscientia and our partners, as well as how we can
best impact the probability of success for patients.”
Recent Highlights
Progress across internal and partnered pipeline, leveraging the
Company's precision medicine platform, as well as key components of
Exscientia's technology and operations.
Internal pipeline
Wholly, majority and co-owned programmes focused on areas in
which Exscientia believes it can improve the probability of
success, including precision oncology
- Following topline data in June, the Company remains on track to
initiate a Phase 1b/2 study of EXS-21546 (majority owned with
Evotec) in the second half of 2022
- Phase 1b/2 study will be optimised with simulation-guided
clinical trial design principles as well as leverage Exscientia's
precision medicine platform to maximise potential impact to the
most relevant patients
- GTAEXS-617 (co-owned with GT Apeiron) CTA submission expected
by year-end 2022
- CTA and IND-enabling studies are ongoing, including
translational work to support planned clinical trials expected to
start in the first half of 2023
Partnered programmes
Utilising a scalable end-to-end platform to advance a broad
pipeline, while also generating significant cash inflows to support
advancements
- First two targets identified in new Sanofi collaboration for
oncology and inflammation & immunity, respectively
- First precision medicine project initiated; focused on patient
enrichment for a Sanofi biologic in oncology
- Advancing Bristol Myers Squibb (BMS) collaboration with
continued progress across both BMS1 and BMS2 collaborations
- Following the achievement of recent successful drug discovery
milestone, Exscientia and Bayer have mutually agreed to end
collaboration; Exscientia will retain optionality to develop one of
the two targets pursued under the collaboration
- The Bayer agreement was the last Exscientia partnership based
on AI-only design services, which included lower economics and
reduced operational involvement in comparison with more recent
partnerships
- This update aligns with Company strategy to increasingly focus
on programmes where Exscientia’s AI design, experimental biology
and precision medicine platforms can be integrated
Recent clinical progress highlights ability of the Company’s
advanced, AI-based platform to create novel molecules with high
level of translatability to human biology
- Announced topline data from EXS-21546 Phase 1a healthy
volunteer study in June 2022
- The study demonstrated that observed human pharmacokinetics for
EXS-21546 were in line with what had been designed for and
predicted in preclinical modelling, supporting a twice-daily (BID)
dose for continuous A2A receptor inhibition over a dosing
interval
- EXS-21546 signalled inhibition of A2A receptor was sustained
over the BID dosing period, demonstrating a level of lasting target
engagement
- EXS-21546 was well-tolerated with no CNS adverse events
reported in the SAD portion at all doses (30mg, 90mg, 250mg, 400mg)
and in the MAD portion at 150mg BID
Exscientia's approach allows for significant cash inflows to
drive the business
- $111.0 million cash flow from collaborations in second quarter
2022, including $100.0 million from Sanofi, ending the first half
2022 with $732.0 million in cash, cash equivalents and short-term
bank deposits
- Includes constant currency mark-to-market foreign exchange
impact of negative 8%
- During the quarter, Exscientia recognised realised foreign
exchange gains net of forward contract settlements of $14.0
million. The Company holds its deposits in both GBP and USD
intended to match expected cash needs while limiting the impact of
exchange rate fluctuations
- Second quarter 2022 net positive cash inflows from operations
of $72.9 million
Expanded leadership team in critical growth areas
- Eileen Jennings-Brown joined as Exscientia's Chief Information
Officer, reporting to Garry Pairaudeau, Chief Technology Officer,
and responsible for overseeing IT and DevOps. Ms. Jennings-Brown
brings more than 25 years of experience across IT roles, including
most recently heading technology for the Wellcome Trust.
- Charlotte Deane, Ph.D., Chief Scientist of Biologics AI, who
joined Exscientia in January 2022, was awarded an appointment to
the Most Excellent Order of the British Empire (MBE) for leading
the UK Research and Innovation's rapid response call for projects
addressing issues arising from the pandemic.
Select peer-reviewed publications and scientific meeting
presentations during the quarter
- “Coverage Score: A Model Agnostic Method to Efficiently Explore
Chemical Space,” was published in the Journal of Chemical
Information and Modeling in July 2022. This advancement in active
learning allows more efficient exploration of chemical space,
potentially leading to increased diversity of candidates, faster
model improvement and shorter time to candidate identification
- “Surface Plasmon Resonance Screening to Identify Active and
Selective Adenosine Receptor Binding Fragments,” a study which
further validates Exscientia's innovative biosensor approach to
screening wildtype GPCR targets to advance drug discovery, was
published in the ACS Medicinal Chemistry Letters in June 2022
- Three posters presented at the AACR Annual Meeting in April,
highlighting Exscientia’s human tissue precision medicine platform,
including potential benefits of Exscientia’s AI-driven design to
overcome known issues such as potency, toxicity and selectivity and
improve patient outcomes
Investor call and webcast information
Exscientia will host a conference call on Thursday, August 18 at
1:30 p.m. BST / 8:30 a.m. ET. A webcast of the live call can be
accessed by visiting the “Investors and Media” section of the
Company’s website at investors.exscientia.ai. Alternatively, the
live conference call can be accessed by dialling +1 (888) 330 3292
(U.S.), +44 203 433 3846 (U.K.), +1 (646) 960 0857 (International)
and entering the conference ID: 8333895. A replay will be available
for 90 days under "Events and Presentations” in the “Investors and
Media” section of the Exscientia website.
Second quarter and first half 2022 financial results
For the convenience of the reader, the Company has translated
pound sterling amounts to U.S. dollars at the rate of £1.000 to
$1.2162, which was the noon buying rate of the Federal Reserve Bank
of New York on June 30, 2022.
Revenue: Recognised revenue for the three and six months
ended June 30, 2022, was $8.7 million and $17.2 million
respectively, representing an increase of $8.3 million and $10.4
million compared to the three and six months ended June 30, 2021,
primarily due to delivery on an increased number of projects across
our second collaboration with BMS, revenues generated from the
extension of the BMS agreement to leverage Exscientia's precision
medicine platform, and recognition of remaining revenues following
the termination of the Bayer agreement.
R&D and cost of drug discovery: Due to various
collaboration structures, expenditure incurred in relation to
research and development activities may be recognised within one of
several financial statement captions. The tables below show how
these expenses are separated across the accounting categories.
Three months ended June 30,
2022 ($
millions):
COGS
R&D
Share of JV
loss
Total
Partnered Programmes
10.9
–
–
10.9
Internal Pipeline and Technology
Development
–
40.2
0.3
40.5
Total
10.9
40.2
0.3
51.4
Six months ended June 30,
2022 ($ millions):
COGS
R&D
Share of JV
loss
Total
Partnered Programmes
17.7
–
–
17.7
Internal Pipeline and Technology
Development
–
68.8
0.7
69.5
Total
17.7
68.8
0.7
87.2
Research and development expenses: R&D expenses for
the three and six months ended June 30, 2022, were $40.2 million
and $68.8 million respectively, as compared to $9.9 million and
$15.1 million for the same period ended June 30, 2021. The increase
in research and development expenses was in part due to the growth
of Exscientia's internal and co-owned portfolio, in addition to
increased headcount and other costs associated with the Company's
continued technology investments. Share-based compensation
accounted for $9.1 million and $12.1 million for the quarter and
half year ended June 30, 2022, as compared to $1.6 million and $1.9
million for the same period ended June 30, 2021.
General and administrative expenses: G&A expenses for
the three and six months ended June 30, 2022, were $14.7 million
and $24.2 million respectively, or 22.3% and 21.9% respectively of
total operating expenses. For the three and six months ended June
30, 2022, G&A expenses increased by $5.6 million and $11.1
million compared to the three and six months ended June 30, 2021,
primarily associated with an increase in personnel costs and
additional costs incurred in relation to the operation of a listed
company. Share-based compensation accounted for $3.3 million and
$4.6 million for the quarter and half year ended June 30, 2022, as
compared to $1.7 million and $2.0 million for the same periods
ended June 30, 2021.
Cash inflows: For the second quarter 2022, Exscientia
received $111.0 million in cash inflows from its collaborations as
compared to $39.5 million during the second quarter 2021.
Cash, cash equivalents and bank deposits: Cash,
cash equivalents and bank deposits as of June 30, 2022, were $732.0
million as compared to $683.7 million as of December 31, 2022. This
includes a 12-month fixed term deposit of $121.7 million.
SELECTED CONSOLIDATED STATEMENT OF OPERATIONS, CONSTANT
CURRENCY CONVERSION (unaudited)
($ millions, except per share data, at the rate of £1.000 to
$1.2162)
Three months ended June
30,
Six months ended June
30,
2022
2021
2022
2021
Revenue
8.7
0.4
17.2
6.8
Cost of sales
(10.9)
(4.4)
(17.7)
(9.1)
Research and development
expenses
(40.2)
(10.0)
(68.8)
(15.1)
General and administrative
expenses
(14.7)
(9.1)
(24.2)
(13.1)
Operating expenses
(65.8)
(23.5)
(110.7)
(37.3)
Foreign exchange gains/(losses)
27.7
(3.4)
39.5
(3.5)
Loss on forward contracts
(13.7)
-
(13.7)
-
Other income
1.9
1.0
3.6
1.5
Operating loss
(41.2)
(25.5)
(64.1)
(32.5)
Finance income/(expense)
0.4
-
0.5
(0.1)
Share of loss on joint ventures
(0.3)
(0.5)
(0.7)
(0.9)
Gain on derivative financial
instrument
0.0
1.7
-
1.7
Loss before taxation
(41.1)
(24.3)
(64.3)
(31.8)
Income tax benefit
6.3
1.7
10.6
2.6
Loss for the period
(34.8)
(22.6)
(53.7)
(29.2)
Net loss per share
(0.29)
(0.86)
(0.44)
(1.02)
SELECTED CONSOLIDATED BALANCE SHEET, CONSTANT CURRENCY
CONVERSION (unaudited)
($ millions, except per share data, at the rate of £1.000 to
$1.2162)
June 30, 2022
December 31,
2021
Cash, cash equivalents & short-term
bank deposits
732.0
683.7
Total assets
849.0
779.2
Total equity
650.8
689.4
Total liabilities
198.2
89.8
Total equity and liabilities
849.0
779.2
SELECTED CONSOLIDATED STATEMENT OF CASH FLOWS. CONSTANT
CURRENCY CONVERSION (unaudited)
($ millions, except per share data, at the rate of £1.000 to
$1.2162)
June 30, 2022
June 30, 2021
Net cash flows from operating
activities
63.3
4.5
Net cash flows used in investing
activities
(133.1)
(4.2)
Net cash flows from financing
activities
(3.7)
222.3
Net (decrease)/increase in cash and
cash equivalents
(73.5)
222.6
Net increase in cash, cash equivalents
and short-term bank deposits
48.2
222.6
About Exscientia
Exscientia is an AI-driven pharmatech company committed to
discovering, designing and developing the best possible drugs in
the fastest and most effective manner. Exscientia developed the
first-ever functional precision oncology platform to successfully
guide treatment selection and improve patient outcomes in a
prospective interventional clinical study, as well as to progress
AI-designed small molecules into the clinical setting. Our internal
pipeline is focused on leveraging our precision medicine platform
in oncology, while our partnered pipeline broadens our approach to
other therapeutic areas. By pioneering a new approach to medicine
creation, we believe the best ideas of science can rapidly become
the best medicines for patients.
Exscientia is headquartered in Oxford (England, U.K.), with
offices in Vienna (Austria), Dundee (Scotland, U.K.), Boston
(Mass., U.S.), Miami (Fla., U.S.), Cambridge (England, U.K.), and
Osaka (Japan).
For more information visit us on https://www.exscientia.ai or
follow us on Twitter @exscientiaAI.
Forward-looking statements
This press release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995, including with respect to the progress of discovery and
development of candidate molecules, and the timing and progress of,
and data reported from, clinical trials of Exscientia’s product
candidates, and Exscientia’s expectations regarding its projected
revenue and cash runway. Any statement describing Exscientia’s
goals, plans, expectations, financial or other projections,
intentions or beliefs is a forward-looking statement and should be
considered an at-risk statement. Such statements are subject to a
number of risks, uncertainties and assumptions, including those
related to: the impact that the COVID-19 pandemic could have on the
Company’s business, including the scope, progress and expansion of
Exscientia’s product development efforts; the initiation, scope and
progress of Exscientia’s and its partners’ planned and ongoing
pre-clinical studies and clinical trials and ramifications for the
cost thereof; clinical, scientific, regulatory and technical
developments; the process of discovering, developing and
commercialising product candidates that are safe and effective for
use as human therapeutics; and the endeavour of building a business
around such product candidates. In light of these risks and
uncertainties, and other risks and uncertainties that are described
in the Risk Factors section and other sections of Exscientia’s
Annual Report on Form 20-F, filed with the Securities and Exchange
Commission (SEC) on March 23, 2022 (File No. 001-40850), and other
filings that Exscientia makes with the SEC from time to time (which
are available at https://www.sec.gov/), the events and
circumstances discussed in such forward-looking statements may not
occur, and Exscientia’s actual results could differ materially and
adversely from those anticipated or implied thereby. Although
Exscientia’s forward-looking statements reflect the good faith
judgment of its management, these statements are based only on
facts and factors currently known by the Company. As a result, you
are cautioned not to rely on these forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220817005681/en/
Investors: Sara Sherman investors@exscientia.ai
Media: Amanda Galgay media@exscientia.ai
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