Longboard Pharmaceuticals, Inc.

Longboard did not report revenue or EPS on this call. In the second quarter, the company ended with approximately $305 million in cash and investments, reflecting about $19 million of cash burn for the quarter. Second-quarter expenses were higher than first quarter due mainly to increased R&D for Bexicaserincaserin and a smaller amount for LP659. For Bexicaserincaserin, PACIFIC data showed a median reduction of countable motor seizures of approximately 60%, and the open-label extension showed sustained response over an approximate six-month period with continued favorable safety and tolerability. For LP659, the company reported that all adverse events were mild, with no serious adverse events, no treatment-emergent discontinuations, no first-dose bradycardia, no ECG abnormalities, and dose/formulation-dependent ALC reductions at six hours of 3.5%, 0.9%, 18.8%, 58.9%, and 48% for the cited doses/formulations versus 4.1% placebo. Guidance-wise, management expects expenses to trend slightly upward during 2024, intends to initiate the Bexicaserincaserin Phase 3 program in the second half of 2024, and expects to initiate an LP659 Phase 1 MAD study in the first quarter of 2025.

Kevin Lind framed 2024 as a major inflection year, emphasizing PACIFIC data, FDA breakthrough designation, and the move into a global Phase 3 program for Bexicaserincaserin. He said the company wants to study DEEs broadly rather than piecemeal, with one Dravet study and one broader DEE study, and will give more details at the September 16 Investor and Analyst Day. On LP659, he said the team is still learning which orphan CNS indication best fits the asset and that the decision will depend on commercial opportunity, clinical feasibility, and translational science.

Brandi Roberts said Q2 cash burn was about $19 million and that Longboard ended the quarter with approximately $305 million in cash and investments. She attributed higher second-quarter expenses to increased R&D, mostly tied to Bexicaserincaserin Phase 3 preparation and open-label extension work, with a smaller contribution from LP659. She said expenses should trend slightly upward through 2024 as the company scales its team and infrastructure, and she said the current cash balance gives Longboard the ability to execute into 2027.

Analysts focused on the size and structure of the Bexicaserincaserin DEE opportunity, how many DEE subtypes could be included, and how the broader DEE endpoint would be harmonized globally. Management said the main endpoint would likely remain countable motor seizures and that they are still refining how many DEEs to include, with more detail expected around the September R&D day. On LP659, analysts asked about formulation differences, half-life, food effect, safety across organ systems, and the partial clinical hold; management said formulation two appears to be the path forward for the MAD, half-life is too early to characterize from SAD data, food-effect work is not part of the SAD study, and the hold remains in place but they plan to submit a complete response with the MAD proposal soon.