Applied DNA Sciences Inc. (NASDAQ:APDN) Q2 2020 Earnings Conference Call - Final Transcript

May 14, 2020 • 04:30 pm ET

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Applied DNA Sciences Inc. (NASDAQ:APDN) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question comes from Anthony Vendetti from Maxim. Please go ahead.

Analyst
Anthony Vendetti

Thanks. Jim, how are you doing?

Executive
James Hayward

Very well. Thank you, Anthony. How about you?

Analyst
Anthony Vendetti

Okay. If you could talk a little bit, Jim, just -- I know you have five vaccine candidates with Takis, the one that you're moving forward with right now, how would that work? Would you be responsible for manufacturing it with Takis? Who would own it? And how would it work if you were to roll it out in terms of revenues to you versus Takis?

Executive
James Hayward

Sure. Good question. So we are still pursuing all five of our candidate vaccines right now. We have to get to the point where the molecular analysis of the response they provoke in animals is more clearly understood. We will be moving with Takis through a simple mouse model to more sophisticated animal model to get a complete survey of the response. This is a joint development program, so we mutually own the products and Applied DNA is the intended manufacturer.

Now that said, the best path for a vaccine to the market is with partners who have established vaccine divisions, who have the marketing, which is unique to vaccines, very different from pharma, and the regulatory experience to rise to the challenges of vaccine. So collectively, we are talking to interested parties right now who are large enough and have the wherewithal to get us to a global market, given that there's a need to vaccinate perhaps 7 billion people in a relatively short period of time.

Analyst
Anthony Vendetti

Okay. Yeah, that's helpful. Obviously, according to at least Dr. Rick Bright's testimony, there's not yet a government plan to figure out how to roll it out and his view anyway is that there's not one company that can do this. So it sounds like you and Takis are having joint conversations with multiple companies should one of your vaccine candidates be one of the vaccines that could be mass-produced?

Executive
James Hayward

Yes. And you bring up, Anthony, the global nature. And the Gates Foundation has spent a lot of money, ensuring tight controls of temperature and humidity conditions in the logistics of vaccine distribution. The benefit of freeze-dried, double-stranded DNA vaccines is they're remarkably stable over very close to or more than a 100-degree centigrade span of temperature. So they'll be very stable in distribution and not require finicky-type controls that are very extensive.

Analyst
Anthony Vendetti

Right. Because a lot of the vaccines, competing vaccines, some may require refrigeration, yours obviously does not.

Executive
James Hayward

That's right.

Analyst
Anthony Vendetti

And then -- and just one last question on the testing. I know obviously, you received a EUA, emergency use authorization, for your COVID-19 test, the diagnostic test. Could you talk a little bit more about exactly how that would roll out?

Executive
James Hayward

Yeah. We -- right now, our test is approved for use on a particular platform, a very sophisticated PCR device. So we intend to broaden the platform that it's relevant to. In addition, individual certified