ORIC Pharmaceuticals, Inc.

ORIC reported fourth-quarter 2021 operating expenses of $22.8 million, which also equaled net loss of $22.8 million. For full-year 2021, operating expenses were $78.9 million and net loss was $78.7 million. Net cash used in operating activities for the 12 months ended December 31, 2021 was approximately $60 million. The company ended the year with $280.4 million in cash and investments. Looking ahead, management said the discontinuation of ORIC-101 extends cash runway into the second half of 2024, beyond expected initial data disclosures from its three clinical programs in the first half of 2023.

Jacob Chacko said ORIC made a deliberate, data-driven decision to stop ORIC-101 because the program did not meet its bar for clinical benefit, despite well-run studies and evidence that the drug hit the target. He emphasized that the company designed the trials to answer the question efficiently, even in a difficult late-line setting, and said ORIC remains focused on high-unmet-need areas. His tone was disappointed on ORIC-101, but confident about the broader pipeline and the company’s capital position.

Dominic Piscitelli led with the financial results: fourth-quarter operating expenses and net loss were both $22.8 million, while full-year operating expenses were $78.9 million and net loss was $78.7 million. He also said net cash used in operating activities was approximately $60 million for 2021 and that ORIC finished with $280.4 million in cash and investments. On capital allocation, he highlighted that discontinuing ORIC-101 extends runway into the second half of 2024, assuming advancement of the remaining pipeline programs.

Analysts focused on why ORIC-101 failed despite what appeared to be target engagement and some prior hints of activity, and management pointed to a tougher, more refractory patient population, differences versus competitors’ studies, tumor heterogeneity, and redundant resistance mechanisms. In prostate, management said patients could acquire AR-V7, MYC, PTEN loss, TP53 loss, and other resistance factors on study, which may have undermined resensitization. Questions on PLK4, ORIC-114 CNS activity, and ORIC-533 combo strategy were met with pipeline-oriented responses: management deferred PLK4 detail until an upcoming poster, said ORIC-114 will allow asymptomatic active brain metastases in Phase 1, and said ORIC-533 could move quickly into combinations if monotherapy activity appears.