Athenex, Inc.

Good day ladies and gentlemen and welcome to the second quarter 2022 a Phoenix earnings conference call. As a reminder all participants are in listen only mode and the conference is being recorded. After the presentation there will be an opportunity to ask questions. To join the question queue you may press star then one on your telephone keypad. Should you need assistance during the conference call you may signal an operator by pressing star and zero. I would now like to hand the conference over to Kaylee Doherty, Director of Investor Relations. You may begin.

Good morning and thank you for joining our conference call. Today we will provide an update on the Phoenix's business as well as a review of financial results for the second quarter of 2022. The news release detailing these results crossed the wire earlier this morning and is available on the company's website. A replay of this call will also be archived on the company's website. During the call, the company will make projections or forward-looking statements regarding future events, including statements about financial, business, and clinical milestones anticipated in the fiscal year 2022 and beyond. We encourage you to review the company's past and future filings with the SEC, which identify specific factors that may cause the actual results or events to differ materially from those described in the forward-looking statements. You can find our SEC filings in the EDGAR database at www.sec.gov or in the investor relations section at our website at www.athenix.com. Speaking on the call this morning will be Dr. Johnson Lau, Chief Executive Officer, Dr. Dan Lang, President of Athenix Cell Therapy, Dr. Daryl Cohen, Chief Medical Officer of Cell Therapy, Mr. Jeff Yorden, Chief Operating Officer, and Mr. Joe Anoni, Chief Financial Officer. I will now turn the call over to Johnson for introductory comments.

Thank you, Katie, and thank you, everyone, for joining our conference call this morning. I'm extremely proud of our team's accomplishments in the first half of 2022. We have now raised approximately $125 million through the rapid execution of three complex deals, which include the sale of our Dunkirk manufacturing facility to Immunity Bio for $40 million, the sale of our turbulent U.S. revenues and EU royalties and milestones to Sagat and Oaktree for $85 million. We also announced another agreement to sell our China API business to the THA Capital, which will add an additional $19 million for a total of $144 million. We remain focused on prudent capital allocation and have deployed the combined deal process to reduce debt from $150 million to $57.5 million. As we discussed in the first quarter, we have also continually reduced headcount as part of our restructuring efforts and generated additional cost efficiencies. We continue to target a 50% reduction in operating expenses by year-end. In summary, We remain on track with our internal targets and our financial priorities remain unchanged. And we expect to continue to transform and strengthen the company's balance sheet through a series of asset divestitures, as well as more substantial and persistent cost reduction, which is related to the pivot of the company. So far this year, we have delivered the company and advanced our pipeline. We are not yet finished with the efforts to secure additional cash runway and are continually working on the other opportunities to leverage other attractive assets within the organization and are actively working on these initiatives which we expect to be announced in due course. At the same time, we have made tremendous progress pivoting the business towards advancing our novel NKT cell therapy platform. with potential to become an industry-leading franchise. We are confident that our innovative NKT cell therapy approach has promised to be disruptive to both the current and emerging cell therapy landscape. We continue to advance our clinical programs in both solid tumors and hematological malignancies with potential differentiation in safety, efficacy, and course over currently approved CAR-T cell therapy approaches. Our two lead clinical programs, CURE501, an autologous GD2-targeted CAR-NKT cell product for the investigational treatment of patients with relapse or refractory high-risk neuroblastoma, and CURE502, an allogeneic CD19-targeted CAR-NKT cell product for the investigational treatment of patients with PVC-treated hematological B-cell malignancies are demonstrating very encouraging dose response and favorable safety and pharmacokinetics in Phase I dose escalation studies. Doctors Dan Lang and Daryl Cohen, our new CMO of cell therapy, will provide a more detailed update on our CART-NKT Cell Therapy Pipeline shortly. Last quarter, we raised our product sales growth guidance to 20-25%, and I'm pleased to report that our APD and APS businesses are performing as expected. We're currently working on new product launches, margin improvements, and maximizing product shortage opportunities. Mr. Jeff Yoden will provide more details on these initiatives later. Data from the phase two, I-SPI-2, clinical trial of Oropracatexel in combination with doceramide plus or minus carboplatin in new adjuvant locally-advanced breast cancer patients are expected in the coming months. We look forward to updating you on this study. which is conducted by Quantum Leap Healthcare Collaborative. If the trial is positive and we graduate from the program, this means that there is at least an 85% chance of success in the phase three trial. In that case, we would look to monetize OPE as part of the pivoting process to create value. We remain on track with our regulatory interactions with MHRA and are submitting responses to questions received regarding use of olfactory taxol in metastatic breast cancer in the UK later this quarter. I'm extremely proud of our team's focus in executing on our strategic pivot and am highly optimistic about Apheonix's ability to transform into a lean and focused business. that is competitively positioned in the border immuno-oncology cell therapy sector. With that, I'll turn the call over to Dr. Dan Lang to discuss our CART-NKT cell therapy platform.