Regenxbio Inc. (NASDAQ:RGNX) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 04:30 pm ET

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Regenxbio Inc. (NASDAQ:RGNX) Q4 2019 Earnings Conference Call - Final Transcript

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Executive
Vit Vasista

under our license agreement with Abeona. The decreases in revenue in 2019 partially offset by $10.7 million and $20.8 million of royalty revenue from the net sales of ZOLGENSMA recognized during the fourth quarter and year-end December 31st, 2019 respectively. Commercial sales of ZOLGENSMA commenced in the second quarter of 2019, and we're eligible to receive a milestone payment of $80 million from AveXis upon the achievement of $1 billion in cumulative net sales of ZOLGENSMA.

Research and development expenses were $33.8 million and $124.2 million for the three months and year ended December 31st, 2019 respectively compared to $24.3 million and $83.9 million for the same period in 2018. The increases were primarily attributable to personal cost as a result of increased headcount, laboratory facilities costs, clinical trials for our lead product candidates and externally-sourced services for preclinical regulatory and manufacturing-related activities.

General and administrative expenses were $14.5 million and $51.8 million for the three months and year ended December 31st, 2019 respectively compared to $11.1 million and $36.9 million for the same periods in 2018. The increases were primarily attributable to personnel cost as a result of increased headcount and professional fees for advisory and other services. Net loss was $26.5 million and $94.7 million for the three months and year ended December 31st, 2019 respectively compared to net income of $4.3 million and $99.9 million for the same period since 2018.

Net loss in 2019 includes realized and unrealized gains of $37.8 million recognized during the period related to our marketable securities of Prevail Therapeutics. As of December 31st, 2019, we had approximately 37 million common shares outstanding. Based on our current operating plan, we expect the balance in cash, cash equivalents and marketable securities for $400 million to fund the completion of our internal manufacturing capabilities and clinical advancement of our product candidates into 2022. Sorry to disappoint, but I've given upfront for the year.

With that, I will turn the call back to Ken to provide final thoughts.

Executive
Ken Mills

Thanks, Vit. We're building on strong progress we made in 2019 by broadening our internal gene therapy pipeline and advancing key programs. After more than a decade of steadfast effort and focus, we remain dedicated and committed to improving lives through the curative potential of gene therapy.

With that, I would like to open the call for questions. Operator?