Mineralys Therapeutics Inc (MLYS) Q4 2024 Earnings Call Highlights: Navigating Increased ...

GuruFocus.com
13 Feb
  • Cash Equivalents and Investments: $198.2 million as of December 31, 2024, down from $239 million as of December 31, 2023.
  • R&D Expenses (Annual): $168.6 million for the year ended December 31, 2024, up from $70.4 million for the year ended December 31, 2023.
  • R&D Expenses (Quarterly): $44.6 million for the quarter ended December 31, 2024, up from $23.7 million for the quarter ended December 31, 2023.
  • G&A Expenses (Annual): $23.8 million for the year ended December 31, 2024, up from $14.3 million for the year ended December 31, 2023.
  • G&A Expenses (Quarterly): $7.2 million for the quarter ended December 31, 2024, up from $4 million for the quarter ended December 31, 2023.
  • Total Other Income (Annual): $14.6 million for the year ended December 31, 2024, up from $12.8 million for the year ended December 31, 2023.
  • Total Other Income (Quarterly): $2.8 million for the quarter ended December 31, 2024, down from $3.3 million for the quarter ended December 31, 2023.
  • Net Loss (Annual): $177.8 million for the year ended December 31, 2024, up from $71.9 million for the year ended December 31, 2023.
  • Net Loss (Quarterly): $48.9 million for the quarter ended December 31, 2024, up from $24.4 million for the quarter ended December 31, 2023.
  • Warning! GuruFocus has detected 3 Warning Signs with MLYS.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Mineralys Therapeutics Inc (NASDAQ:MLYS) is on track to announce top-line data from its pivotal Advance-HTN trial in March and Launch-HTN trial in the mid-first half of 2025.
  • The company has completed enrollment in the Explore-CKD Phase 2 trial, which evaluates lorundrostat for hypertension in patients with chronic kidney disease.
  • Mineralys Therapeutics Inc (NASDAQ:MLYS) has a strong cash position, with $198.2 million in cash equivalents and investments as of December 31, 2024, sufficient to fund operations through Q1 2026.
  • The company is exploring innovative approaches, such as continuous blood pressure monitoring during sleep, in its Explore-OSA Phase 2 trial for obstructive sleep apnea.
  • Mineralys Therapeutics Inc (NASDAQ:MLYS) has received positive feedback from payers regarding the potential market positioning of lorundrostat, particularly in resistant hypertension.

Negative Points

  • Mineralys Therapeutics Inc (NASDAQ:MLYS) reported a significant increase in net loss for 2024, amounting to $177.8 million compared to $71.9 million in 2023.
  • Research and development expenses have more than doubled, reaching $168.6 million in 2024, driven by increased clinical and pre-clinical costs.
  • The company faces challenges in ensuring compliance with 24-hour ambulatory blood pressure monitoring devices, which could affect trial data quality.
  • There is uncertainty regarding the extrapolation of Phase 2 trial results to larger pivotal studies due to small sample sizes in earlier trials.
  • Mineralys Therapeutics Inc (NASDAQ:MLYS) anticipates potential challenges in differentiating lorundrostat from existing mineralocorticoid receptor antagonists, particularly regarding efficacy and safety profiles.

Q & A Highlights

Q: In the phase two target trial, what gives you confidence that the SBP reduction seen in the 12 patients can be extrapolated to phase 3? A: Jon Congleton, CEO: We looked at both in-office and 24-hour ambulatory measurements. Despite some subjects having baseline blood pressure below goal, the totality of evidence across different doses gave us confidence in the 50 mg QD dose for 24-hour blood pressure control.

Q: For the OSA trial, will improvement in the apnea hypopnea index be primarily due to fluid volume reduction, or would non-genomic effects contribute? A: David Rodman, CMO: The mechanism is primarily volume shifts, which cause fluid redistribution that obstructs the airway. Non-genomic effects like inflammation may also contribute, but the primary mechanism is volume-related.

Q: Given your guidance for Advance and Launch readout timelines, is there more refined guidance on when each will be presented? A: Jon Congleton, CEO: We continue to guide Advance-HTN for March and Launch-HTN for mid-first half of this year. Depending on when we get the top line results, we may do a corporate announcement in conjunction with the ACC meeting.

Q: What are your expectations around safety and tolerability for the upcoming pivotal readouts? A: Jon Congleton, CEO: Aldosterone synthase inhibitors reduce plasma aldosterone, affecting multiple pathways. We expect a more modest impact on potassium compared to MRAs, which often lead to hyperkalemia.

Q: Could you discuss the threshold for hyperkalemia rates in Advance and Launch, and how diuretics might impact these rates? A: Jon Congleton, CEO: A hyperkalemia rate of 5% or less is viewed favorably. Diuretics, which are potassium-wasting, could offset the modest rise in potassium seen with aldosterone synthase inhibitors.

Q: How do you expect the treatment effects observed with lorundrostat in the pivotal studies to differ, given the slight differences between trials? A: Jon Congleton, CEO: It's hard to predict, but Advance-HTN is a more rigorous study with confirmed uncontrolled or resistant hypertension, potentially enriched for aldosterone-dependent hypertension. Launch-HTN is confirmatory to Target-HTN.

Q: How do you view the threshold for hyperkalemia rates in Advance and Launch, and what needs to be shown to be differentiated in the clinic? A: David Rodman, CMO: The FDA focuses on benefit-risk rather than p-values. Ensuring patients take their thiazides improves benefit-risk by increasing response and decreasing potassium.

Q: Can you speak more about the mechanism expectations for ASI benefit in obstructive sleep apnea patients? A: David Rodman, CMO: The goal is to address resistant hypertension driven by hypoxia. The drug targets aldosterone-dependent mechanisms, potentially reducing arrhythmias and improving blood pressure control.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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