Surrozen, Inc.

The call did not report quarterly revenue or EPS, as this was a corporate update rather than an earnings release. Management said cash, cash equivalents and marketable securities were approximately $76 million at the end of 2022, and that operating expenses excluding noncash and nonrecurring charges are expected to decline by about 15% in 2023 versus 2022. For SZN-043, the company said it had enrolled its first patient in chronic liver disease and expects data by year-end 2023, with Phase Ib in severe alcoholic hepatitis planned for 2024 and proof-of-concept data in the second half of 2024. For SZN-1326, enrollment is reopening at 0.04 milligrams, with data also expected by year-end 2023, followed by a 2024 Phase Ib in ulcerative colitis and proof-of-concept data in the second half of 2024. The company reiterated runway into the second half of 2024 and said the Boehringer program could trigger a $10 million milestone if a candidate is nominated by year-end 2023.

Craig Parker framed Surrozen as a platform company trying to selectively activate Wnt signaling for tissue regeneration, emphasizing the breadth of the biology and the company’s patent position. His tone was cautiously optimistic: he repeatedly pointed to strong preclinical data, a well-defined path for SZN-043, and the potential for Wnt-based therapies across liver, GI, and ophthalmology. At the same time, he acknowledged that the recent liver enzyme findings are still not fully explained and that the company is proceeding carefully with lower doses and more human data.

Charles Williams focused on capital structure and spending discipline. He said the Q1 restructuring was aimed at aligning resources to the two lead programs, prioritizing the cornea and lacrimal discovery assets, and reducing operating expenses, with noncash and nonrecurring-adjusted operating costs expected to fall about 15% in 2023 versus 2022. He also highlighted the roughly $76 million cash balance at year-end 2022, runway into the second half of 2024, and the repurchase of approximately 5.4 million shares and approximately 1.3 million warrants from Continence for about $2.7 million.

Analysts focused on the study design changes, the liver transaminase signal, dose selection, and whether the company can find a therapeutic window. Management said the shift from “early cirrhotic” wording to “chronic liver disease” reflects a lower-fibrosis population with FibroScan scores that may not yet meet a cirrhosis threshold, while the main goal remains safety. On dosing, they said 1326 is moving to 0.04 milligrams with a MABEL strategy, half-life for 1326 is about 5 days in primates, and the biological effect could last longer than PK would suggest. For target engagement, 043 showed ASGR1-related activity via ALP elevation, while 1326 has no direct engagement assay yet and the company plans to use Axin2 in biopsy tissue to confirm Wnt activation in UC patients.