Neoleukin Therapeutics, Inc.

Neoleukin reported cash, cash equivalents and short-term investments of $116.5 million as of June 30, 2022, down from $142.5 million at December 31, 2021. Second-quarter R&D expense was $11 million versus $9.8 million a year ago, G&A expense was $4.9 million versus $5.3 million, and net loss was $15.7 million versus $15.1 million in Q2 2021. The company said its cash and short-term investments are expected to fund operations through 2023, and it is evaluating opportunities to extend runway by gaining certain activities and slowing growth. No revenue or EPS figures were reported.

Jonathan Drachman framed Neoleukin as a de novo protein design company entering a new phase that combines machine learning and neural networks with computational methods. He emphasized NL-201 as the first fully de novo protein to enter clinical testing and said the company is learning from the Phase 1 trial while building out a broader pipeline, including new cytokine mimetics and a T-regulatory cell agonist concept. His tone was optimistic about the platform and careful on timing, repeatedly saying the company would update investors as data mature.

Sean Smith highlighted the quarter’s spend profile and liquidity. Cash, cash equivalents and short-term investments were $116.5 million at June 30, 2022, and the company expects that to support operations through 2023. R&D rose to $11 million, mainly from higher NL-201 clinical trial expense, while G&A fell to $4.9 million due to lower personnel- and facility-related costs; net loss was $15.7 million. He also said management is evaluating ways to extend runway in response to challenging capital markets and has slowed growth.

Analysts focused on what the delayed interim update will include, what the added intermediate doses mean, and whether there were any safety concerns such as DLTs. Management said the next data package should include safety, tolerability, biomarkers, pharmacokinetics and anecdotal anti-tumor activity, and that the added doses do not reflect de-escalation but rather a refinement to fully evaluate safety and activity. Drachman said they would not comment on safety or DLTs yet, confirmed the original dosing schedules remain in place, and said the hematology study is being held until more is learned from the solid tumor trial.