Exscientia plc (Nasdaq: EXAI)
Recent advancements in the Company’s pipeline, collaborations
and operations, as well as financial results for the second quarter
and first half 2023, are summarised below. Exscientia will host a
conference call Thursday, August 10 at 1:30 p.m. BST / 8:30 a.m.
EDT.
“In the first half of 2023, four molecules precision-designed by
Exscientia advanced further into clinical trials, a significant
achievement as we progress our growing pipeline,” said Professor
Andrew Hopkins FRS FMedSci, founder and Chief Executive Officer of
Exscientia. “Most recently, we announced the dosing of the first
patient in ELUCIDATE, a Phase 1/2 trial of our CDK7 inhibitor
GTAEXS617 (‘617). We also initiated a prospective observational
study, EXCYTE-1, evaluating the utility of our precision medicine
platform in ovarian cancer, paving the way for its potential
broader application across solid tumours. As we continue executing
our internal and partnered programmes and integrating automation
across our end-to-end discovery process, Exscientia is solidifying
its leadership in AI-enabled drug design and development.”
Recent Highlights
Internal pipeline
- In July, Exscientia announced enrolment of the first patient in
ELUCIDATE, a Phase 1/2 dose escalation trial evaluating its novel
CDK7 inhibitor, ‘617, for the treatment of advanced solid tumours
- ‘617 was designed by Exscientia in collaboration with GT
Apeiron for high potency, selectivity, oral bioavailability and
safety
- The ELUCIDATE Phase 1/2 trial will evaluate the safety,
efficacy and pharmacokinetics of ‘617 across multiple ascending
doses in six indications including head and neck cancer, pancreatic
cancer, non-small cell lung cancer (NSCLC), HR+/HER2- breast
carcinoma and ovarian cancer
- EXS21546 (‘546), Exscientia’s A2AR antagonist, continues to
enrol patients in the Phase 1/2 IGNITE clinical trial in
relapsed/refractory renal cell carcinoma and NSCLC
- EXS74539 (‘539) and EXS73565 (‘565), Exscientia’s wholly-owned
LSD1 inhibitor and MALT1 protease inhibitor, respectively, continue
to progress through IND/CTA-enabling studies
Partnered programmes
- Two programmes, EXS4318 (‘4318) a PKC-theta inhibitor precision
designed by Exscientia and in-licensed by Bristol-Myers Squibb, and
DSP-2342, a dual 5-HT2A/5-HT7 antagonist designed for Sumitomo
Pharma, are now in Phase 1 clinical trials
Precision medicine
- In July, Exscientia announced the initiation of EXCYTE-1, a
prospective observational study to evaluate the utility of
Exscientia’s precision medicine platform in ovarian cancer
- The multi-centre two-phase study will evaluate Exscientia’s
single cell functional precision medicine platform in ovarian
cancer and investigate the relationship between ex vivo drug
response in primary tumour samples and patient clinical
response
- The study also aims to further validate the platform for wider
use across a variety of solid tumours
AI and automation
- Exscientia opened its automation laboratory in Milton Park,
Oxfordshire, which will enable the Company to integrate generative
AI and automation to drive faster, high quality
experimentation
- The Company is building its own hardware and software solutions
to automate a wide range of experimental laboratory processes
including chemical synthesis, as well as biochemical and
biophysical screening
- Capabilities are expected to be online later in 2023
Leadership expansion and recognition
- The Company expanded its technology leadership team to maintain
nimble product development through the promotion of three
experienced leaders to Exscientia’s executive committee. Each heads
one of three newly created technology functions to further align
executive decision-making with Exscientia’s functional priorities
in technology:
- Professor Charlotte Deane, Ph.D. MBE has been promoted to Chief
AI Officer, with continued focus on the application of AI, machine
learning and physics-based methods for the discovery and
development of novel drug candidates
- Eileen Jennings-Brown joined Exscientia as Chief Information
Officer in 2022 and will continue to be responsible for this
critical priority going forward
- John P. Overington, Ph.D. has been promoted to Chief Data
Officer, focused on leading a unified data function covering all
aspects of data generation and analysis
- Exscientia also appointed Harvard Professor Franziska Michor,
Ph.D., to its Board of Directors. Professor Michor brings over 20
years of experience in cancer research and has authored more than
180 publications. Her work currently focuses on the evolutionary
dynamics of cancer initiation, progression, response to therapy and
emergence of resistance
Investor Call and Webcast Information
Exscientia will host a conference call on Thursday, August 10 at
1:30 p.m. BST / 8:30 a.m. EDT.
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 2023 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
$1.2709, which was the noon buying rate of the Federal Reserve Bank
of New York on June 30, 2023.
Revenue: Revenue for the three and six months ended June
30, 2023 was $3.8 million and $11.1 million respectively, compared
to $9.1 million and $17.9 million for the three and six months
ended June 30, 2022. The decrease in revenue year over year was
primarily due to amounts recognised in the prior period relating to
a collaboration term extension payment.
Research and development expenses: R&D expenses for
the three and six months ended June 30, 2023 were $42.0 million and
$84.4 million respectively, as compared to $42.0 million and $71.8
million for the same period ended June 30, 2022. Research and
development expenses in the second quarter 2023 were relatively
flat over the second quarter 2022, as areas of pipeline and
operational growth were offset by efficiency and cost savings
activities.
General and administrative expenses: G&A expenses for
the three and six months ended June 30, 2023, were $14.7 million
and $28.6 million respectively, or 23% and 22% of total operating
expenses. For the three and six months ended June 30, 2023, G&A
expenses decreased by $0.6 million and increased by $3.3 million
compared to the three and six months ended June 30, 2022
respectively, primarily associated with the growth of the business
being offset by automation and cost efficiency measures.
Cash inflows: For the second quarter 2023, Exscientia
received $0.7 million in cash inflows from its collaborations as
compared to $111.0 million during the second quarter 2022, when the
upfront payment for the Sanofi collaboration was received.
Net operating cash flow and cash balance: For the three
and six months ended June 30, 2023, net operating cash outflows
were $52.5 million and $107.6 million respectively, in comparison
to net operating cash inflows of $54.9 million and $35.0 million
for the three and six months ended June 30, 2022. Cash, cash
equivalents and short-term bank deposits as of June 30, 2023 were
$508.6 million, as compared to $642.8 million as of December 31,
2022 using the June 30, 2023 constant currency rate.
- Includes constant currency mark-to-market foreign exchange
impact of 5% based on the strengthening of pounds sterling through
June 30, 2023
- During the second quarter of 2023, Exscientia recognised net
foreign exchange losses of $0.5 million
- The Company holds its deposits in both GBP and USD, intended to
match expected operational cash needs in order to limit the impact
of exchange rate fluctuations
SELECTED CONSOLIDATED STATEMENT OF OPERATIONS, CONSTANT
CURRENCY CONVERSION (unaudited) ($ millions, except per share
data, at the rate of £1.000 to $1.2709)
Three months ended June
30,
Six months ended June
30,
2023
2022
2023
2022
Revenue
3.8
9.1
11.1
17.9
Cost of sales
(8.0)
(11.4)
(18.7)
(18.5)
Research and development expenses
(42.0)
(42.0)
(84.4)
(71.8)
General and administrative expenses
(14.7)
(15.3)
(28.6)
(25.3)
Operating expenses
(64.7)
(68.7)
(131.7)
(115.6)
Foreign exchange (losses)/gains
(0.5)
14.5
(2.1)
26.9
Other income
2.3
1.9
5.6
3.8
Operating loss
(59.1)
(43.2)
(117.1)
(67.0)
Finance income/(expense)
5.0
0.5
9.2
0.5
Share of loss on joint ventures
(0.2)
(0.3)
(0.8)
(0.7)
Loss before taxation
(54.3)
(43.0)
(108.7)
(67.2)
Income tax benefit
8.6
6.5
15.1
11.0
Loss for the period
(45.7)
(36.5)
(93.6)
(56.2)
Net loss per share
(0.37)
(0.31)
(0.76)
(0.46)
Weighted average shares outstanding
(basic and diluted)
123,748,524
121,899,774
123,504,575
121,432,193
SELECTED CONSOLIDATED STATEMENT OF CASH FLOWS, CONSTANT
CURRENCY CONVERSION (unaudited) ($ millions, except per share
data, at the rate of £1.000 to $1.2709)
June 30, 2023
December 31, 2022
Cash, cash equivalents & short-term
bank deposits
508.6
642.8
Total assets
716.7
825.6
Total equity
530.3
608.6
Total liabilities
186.4
217.0
Total equity and liabilities
716.7
825.6
SELECTED CONSOLIDATED STATEMENT OF CASH FLOWS, CONSTANT
CURRENCY CONVERSION (unaudited) ($ millions, except per share
data, at the rate of £1.000 to $1.2709)
June 30, 2023
June 30, 2022
Net cash flows (used in)/from operating
activities
(107.6)
35.0
Net cash flows used in investing
activities
(86.0)
(139.1)
Net cash flows from financing
activities
(2.0)
(3.9)
Net decrease in cash and cash
equivalents
(195.6)
(108.0)
Exchange (loss)/gain on cash and cash
equivalents
(3.1)
31.2
Net (decrease)/increase in cash, cash
equivalents and short-term bank deposits*
(134.3)
50.5
* Includes both increases in short term
bank deposits and foreign exchange gains/(losses) on cash and cash
equivalents
About Exscientia
Exscientia is an AI-driven precision medicine 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.
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 initiation, timing and progress
of, and data collected during and reported from, the Company's
clinical trials, as well as expectations with respect to the
outcome or benefit of such trial. Any statement describing
Exscientia’s goals, plans, expectations, 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
initiation, scope and progress of Exscientia’s and its partners’
planned and ongoing preclinical 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 judgement 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/20230810421078/en/
Investor Relations: Sara Sherman
investors@exscientia.ai
Media: Oliver Stohlmann media@exscientia.ai
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