Aerpio Pharmaceuticals, Inc.

For Q2 2020, earnings attributable to common stockholders were $9.3 million versus a net loss of $5.7 million in Q2 2019, helped by a one-time $15 million payment from Gossamer Bio for an amendment to the GB004 license agreement. Operating expenses were $5.7 million versus $6.0 million a year ago; R&D rose to $3.6 million from $2.3 million, while G&A fell to $2.2 million from $2.8 million. Cash and cash equivalents were $44.9 million at June 30, 2020, with no debt. Management said the company has sufficient cash to get to top-line data for current clinical trials and through at least Q4 2021. Forward-looking guidance included top-line results for the Phase II glaucoma trial in Q4 2020, MTEC trial top-line data toward the end of Q1 2021, and progress updates on both trials in the first half of 2021.

Joseph Gardner emphasized that Aerpio’s lead program, razuprotafib, is being advanced in glaucoma and COVID-19 with what he described as a novel Tie2-based mechanism. He said the glaucoma study is progressing faster than previously expected, investigators are enthusiastic, and the company sees both a sight-threatening and a life-threatening disease opportunity. His tone was highly optimistic, repeatedly framing the programs as potentially transformative and stressing third-party validation from the I-SPY network and the U.S. military.

Gina Marek focused on the quarter’s financials and balance sheet strength. She cited $9.3 million in earnings attributable to common stockholders, the $15 million Gossamer amendment payment, R&D of $3.6 million, G&A of $2.2 million, and cash of $44.9 million with no debt. She also said the company has enough cash to reach top-line data for the current trials and fund operations through at least Q4 2021.

Analysts asked when the MTEC COVID trial would begin enrolling and when top-line data would be available; management said enrollment should start imminently within the next few weeks and results are expected toward the end of Q1 2021. When asked whether razuprotafib could be used in mild-to-moderate or recovery-stage COVID-19 patients, management said yes, and noted they may consider additional trials after the two current studies. On glaucoma, management said a 1.5 mmHg or better IOP reduction would be clinically meaningful, referencing the prior 1.58 mmHg result, and said combining razuprotafib with latanoprost appears feasible based on preliminary experiments.