EQRx, Inc.

EQRx ended Q1 2023 with $1.3 billion in cash, cash equivalents and short-term investments. Total operating expenses were $102 million versus $86 million in the same period a year ago. Cash burn was $86 million for the first 3 months of 2023, and R&D represented about 70% of spend. Management expects cash used in operations to be $275 million or less for 2023, including about $45 million to $55 million of nonrecurring wind-down, termination and exit costs, and year-end cash of approximately $1.1 billion. The company expects at least $125 million in annualized cash savings from the reset.

Melanie Nallicheri framed the quarter as a true reset, saying EQRx will focus on developing clinically differentiated, high-value medicines and will remove programs inconsistent with that strategy. She emphasized the company’s $1.3 billion cash position, the ability to lower spend significantly, and the view that the new structure creates more clarity and flexibility for future product acquisition. Her tone was pragmatic and candid, acknowledging the changes were difficult but necessary.

As principal financial officer, Melanie highlighted the quarter’s core numbers: $1.3 billion in cash, $102 million in operating expenses, and $86 million in cash burn for the first three months of 2023. She said R&D made up about 70% of spend and guided to cash used in operations of $275 million or less for 2023, inclusive of $45 million to $55 million of one-time wind-down costs. She also pointed to expected annualized cash savings of at least $125 million and estimated year-end cash of about $1.1 billion, saying the reset should materially reduce future burn and support additional product acquisitions.

Analysts pressed for timelines on aumolertinib regulatory decisions, and management said it expects decisions from the U.K. MHRA and EU EMA this calendar year. Questions also focused on lerociclib’s path to market and whether the company would pursue an adjuvant breast cancer study; Eric Hedrick said approval for the endometrial cancer program could be targeted around 2026 if Phase III is positive, but the conventional adjuvant setting does not seem like the right fit. Management also addressed skepticism about the strategy change, saying the company is now explicitly trimming away assets that do not fit the new focus and that its priority is clearer execution around differentiated medicines.