Kindred Biosciences, Inc. (NASDAQ:KIN) Q3 2019 Earnings Conference Call - Final Transcript
Nov 12, 2019 • 04:30 pm ET
Welcome to the Third Quarter 2019 Financial Results Conference Call and Webcast for Kindred Biosciences. [Operator Instructions] At the end of prepared statements, participants will have the opportunity to ask questions. [Operator Instructions] Please note that the remarks today will include forward-looking statements and that actual results could differ materially from those projected or implied in our forward-looking statements. For a description of important factors that could cause actual results to differ, we refer you to the forward-looking statements in today's press release and the note on forward-looking statements in the Company's SEC filings. It is now my pleasure to turn the call over to Kindred Bio's, CEO, Richard Chin. Dr. Chin, Please proceed.
Thank you, operator. Good afternoon and welcome to our third quarter 2019 financial results call. Joining me today from the management team of Kindred Bio are Denise Bevers, our President and COO, Wendy Wee, our CFO, and Katja Buhrer, our VP of Corporate Development and Investor Relations. As we stated in our press release, our revenue was $1.1 million in the third quarter. While this is lower than we expected, I should note that quarterly revenues reflect ongoing variability in the distributor ordering patterns, which are the norm in industry.
Sales from the distributors to clinics grew strongly meaning customer demand for Mirataz continues to grow, which is an important metric and that it more accurately reflects true demand. As Denise will outline, other key metrics continue to look favorable for Mirataz. We are very excited about the anticipated upcoming approval for Mirataz in the EU given the positive opinion from the CVMP. Europe is the second largest market for veterinary therapeutics globally. For Mirataz, we believe European sales may exceed its sales in the US and uptake could be swifter, because in the EU veterinarians are usually prohibited from using human generics if there's an approved veterinary drug with the same active ingredient. We are in active discussions with multiple partners about EU rights to Mirataz. We also continue to be on track for Zimeta approval in the US by end of this month.
Regarding IL-31, we are in the process of scaling up the manufacturing process. As you know, often you need to make changes to the process during scale-up and this is taking a bit longer than we expected. So that's going to push back the timeline for the initiation of the pivotal study into 2020. The good news is that we have found some potential enhancements that we can make, that may substantially lower the cost of goods and we're exploring those changes as well. I should also note that we are in active negotiations with multiple companies for commercial rights to IL-31 antibody and the interest in the asset continues to be strong.
Our SINK study in atopic dermatitis is also coming along well, and we expect to read out that study in the first quarter of next year. We're making excellent progress on our parvovirus antibody program and continue to expect