PHIO — Phio Pharmaceuticals Corp.

Summary of RXi Pharmaceuticals Q3 2018 Earnings Call

1. Key Financial Results and Metrics

• Net Loss: $1.5 million for Q3 2018, down from $2.5 million in Q3 2017, reflecting reduced operating expenses.
• Grant Revenues: $57,000 for Q3 2018, related to a government grant, compared to no revenues in Q3 2017.
• R&D Expenses: $0.8 million, decreased from $1.5 million in the prior year, attributed to completed clinical trials and reduced headcount.
• G&A Expenses: $0.7 million, down from $1 million in Q3 2017, also due to lower payroll expenses.
• Cash Position: $3.2 million as of September 30, 2018, down from $3.6 million at year-end 2017. A public offering completed on October 3, 2018, raised $15 million, extending the cash runway into the second half of 2020.

2. Strategic Updates and Business Highlights

• Name Change: The company will rebrand from RXi Pharmaceuticals to Phio Pharmaceuticals Corporation, effective soon, to better reflect its focus on immuno-oncology.
• Leadership Changes: Dr. Gerrit Dispersyn was appointed President and COO, with plans for him to succeed Dr. Geert Cauwenbergh as CEO.
• R&D Focus: The company is advancing its self-delivering RNAi platform in immuno-oncology, particularly in adoptive cell therapy (ACT) and natural killer (NK) cell therapies.
• Collaborations: Ongoing partnerships with academic institutions and industry players to enhance R&D efforts, including a new collaboration with the Karolinska Institutet.

3. Forward Guidance and Outlook

• Cash Burn Rate: Expected to remain around $2 million per quarter, with potential increases as the company prepares to enter clinical trials in 2019.
• Clinical Trials: Plans to initiate the first clinical trial in immuno-oncology and continue advancing existing programs.
• Compliance with NASDAQ: The company is under pressure to maintain its share price above $1 to comply with NASDAQ listing requirements, with a deadline of May 13, 2019.

4. Bad News, Challenges, or Points of Concern

• Share Price Compliance: The stock has been trading below $1 for over 30 days, risking delisting from NASDAQ if not rectified.
• Market Perception: Concerns were raised about the impact of previous reverse stock splits on investor confidence and share price manipulation.
• Cash Position: Although the recent financing extends the cash runway, ongoing reliance on external funding and the need for successful licensing deals remain critical.

5. Notable Q&A Insights

• Investor Concerns: Investors expressed worries about the share price and potential manipulation, with suggestions for the company to clarify its compliance intentions with NASDAQ.
• Collaboration Expectations: Questions about the value of dermatology and ophthalmology assets being sold were met with cautious optimism, though no specific figures were provided.
• R&D Progress: The company anticipates initial data from new collaborations in early 2019, with further developments expected throughout the year.
• NK Cell Therapy: Insights were shared on how the sd-rxRNA technology enhances NK cell activity, positioning it as a promising avenue for future therapies.

Overall, RXi Pharmaceuticals is navigating a transitional phase with a focus on immuno-oncology while managing financial constraints and regulatory compliance challenges.