Voyager Therapeutics, Inc.

Good afternoon and welcome to the Voyager Therapeutics fourth quarter and full year 2020 financial results conference call. At this time, all participants are in a listen-only mode. This call is being webcast live on the investor and media section of Voyager's website at voyagertherapeutics.com. This call is property of Voyager Therapeutics and recording, reproduction, or transmission of this call without the express written consent of Voyager Therapeutics is strictly prohibited. Please be advised that this call is being recorded. I would now like to introduce Alison Dorval, CFO at Voyager.

Good afternoon, and thank you for joining us. With me on the call today are Andre Tarrant, our President and Chief Executive Officer, and Omar Khwaja, Chief Medical Officer and Head of R&D. This afternoon, after market closed, we issued a press release which outlines the financial results and corporate highlights for the fourth quarter and full year 2020. The release is available at voyagertherapeutics.com. Before we begin, just a reminder that the forward-looking statements included in this call represent the company's view as of today, February 25th, 2021. Voyager disclaims any obligation to update these statements to reflect future events or circumstances, except as required by law. Please refer to today's press release, as well as Voyager's filing with the SEC, for information concerning risk factors that could cause actual results to differ materially from those expressed or implied by such statements. With that, I'll turn the call over to Andre.

Great. Thank you, Alison, and good afternoon, everyone. Welcome to our Q4 earnings and corporate update call. I'll begin by walking through highlights from 2020 and expectations for 2021. Omar will discuss our pipeline programs and plans, and Allison will close with our financial results and guidance. Once we've concluded our remarks, we'll take questions in the Q&A session. In 2020, we remained focused on moving our pipeline and our key platform activities forward. Among the key highlights, we made significant progress in readying our Huntington's disease program for clinical trials. Based on our preclinical data, we believe that the VYHTTO1 has the potential to be a best-in-class therapy for this devastating disease. We achieved highly promising results using our tracer platform to identify capsids with a much better ability to cross the blood-brain barrier than current serotypes. The implication of these advances could be profound for both our own pipeline and for the field of gene therapy through collaborations. We also advanced our overall pipeline and platform and provided updates on the progress through 18 presentations at scientific conferences and four publications in peer-reviewed journals. And finally, we made key additions to our team at the board level, at the SAB level, and also at the senior management level. While we made very good progress, the past year wasn't without its challenges. Our Huntington's IND was placed on clinical hold pending resolution of additional device and CMC-related requests from the FDA. The Parkinson's IND was also placed on clinical hold, in that case pending follow-up imaging and clinical assessments requested by the DSMD. and a risk-benefit assessment requested by the FDA. And NERCLIN recently notified us of its intent to terminate the portion of our collaboration related to the VYADC program. The work we do is challenging, but the potential rewards for patients and their families are enormous. Voyager was founded on a commitment to applying gene therapy to some of the most life-limiting and disabling disorders in medicine and our resolve is unwavering. We've built a world-class team of experts at the intersection of gene therapy and neuroscience. On the back of the pioneering work we've done to date and our most recent advances, we're now poised to enter a new phase in our mission to deliver transformative therapies for people suffering from severe neurological diseases. Before I turn it over to Omar, I'd like to point out some of our upcoming highlights for 2021. For the Huntington's program, we expect to provide our response to the FDA on our IMD in the first half of the year and to initiate our first in-human trial upon IMD acceptance. For the novel capsids, we plan to present non-human primate data on our lead capsids at a scientific conference in the first half of 2021. For the Parkinson's program, we expect to provide an update on the potential path forward based on the additional information being collected by NERCRM in response to the FMV request. And lastly, for the preclinical pipeline, including our innovative vectorized antibodies, we expect to announce new programs and provide updates at scientific meeting and other presentations in the first half of the year. With that, I'll turn the call over to Omar.

Thanks, Andre. I'll walk through our program updates in more detail. Today, we'll start with BYHTT01, our wholly owned program for Huntington's disease. Huntington's disease affects approximately 40,000 people in the United States, and it's the most common monogenic neurological disorder in the developed world. It's a relentlessly progressive and ultimately fatal disorder that strikes people in the prime of life. It's a disease characterized by a toxic gain-of-function mutation in the Huntington gene. This leads to abnormal Huntington protein aggregates that cause neuronal cell death. For patients, their families, and care partners, it's a devastating disease that results in a progressive decline of motor skills and cognitive functions. Our therapeutic candidate, BYHTT01, is an AV1 gene therapy encoding a novel microRNA designed to potentially reduce human HTP messenger RNA. We've developed our candidates and routes of administration to safely deliver the highly potent gene-silencing microRNA where it can impact the neuropathology of the disease in the core structures of the striatum and cortex. The canonical RNA interference pathway used in BYHCT01 is a well-characterized and highly precise mechanism that's been validated in the clinic. And since the chordate has significantly atrophied and striatal to cortical connections are compromised in early unsignificant disease, we plan to deliver VYHCT01 directly to the putamen and thalamus, targeting the primary site of disease pathology and leveraging the thalamus' extensive neuronal projections to the cortex. We've previously presented data demonstrating that delivery of VYHTT01 into the putamen and thalamus of non-human primates was well tolerated. The investigational gene therapy results in a widespread distribution of VYHTT01 vector genomes across the striatum and cortex. This leads to robust reductions of HTT messenger RNA and protein in these key brain structures. These reductions stabilized between 6 and 12 months following a single injection of the gene therapy. VYHTT01 treatment also demonstrated potent reduction of HTT mRNA and protein in the YAK-128 and BAC-HD transgenic mouse models of Huntington's disease, with significant improvements in motor function, allowing us to select doses that we predict to be clinically efficacious. We're very pleased with these results, and as Andre mentioned, We plan to present preclinical data from the IND enabling studies later this year. We submitted our IND application for BYHCT01 in September and were placed on clinical hold by the FDA pending resolution of questions on CMC-related items. These include drug device compatibility and drug substance and product characterization. Our team is working hard to complete the information requests and expect to provide our complete response to the agency in the first half of 2021. While we work to gain IND acceptance, our clinical team has been actively engaging with investigators, trial sites, as well as the patient and clinician communities to ensure a smooth transition to our first in-human trial. We're focused on having our trial active and positioned to enroll patients quickly upon IND acceptance. There's currently no available disease-modifying treatment for people with Huntington's disease, and we believe BYHCT-01 has the potential to change that. Andre also mentioned our vectorized anti-Tau program. Taupathies are progressive neurodegenerative disorders defined by toxic aggregates of Tau protein in the brain. These are in conditions such as Alzheimer's disease, frontotemporal dementia, and progressive supranuclear palsy. Current treatments address symptoms only. We had originally started this program under a collaboration with ADVI, where we not only developed our process for vectorizing antibodies, but also worked on antibody discovery. When ADVI terminated the collaboration last summer, we retained the rights to the vectorization technology and certain novel vectorized antibodies that had been developed. The Vectorized Anti-Tau Program is now included in our wholly owned pipeline. We believe that the delivery of vectorized antibodies can overcome many of the limitations of pathos immunization, including the amount of antibody reaching the brain. The advances we've made to date validate our belief that we have a better method for delivering antibodies to the brain. We continue to drive these efforts forward. In 2021, we plan to select our development candidate and begin dose range finding and biodistribution studies on this program. We're also advancing our work in vectorizing novel payloads, including innovative antibody and other biotherapeutic formats. I'd like to spend the next few minutes discussing our progress on novel capsid discoveries. An area of Voyager is conducting groundbreaking work and is a leader in the field of gene therapy. We're using our tracer functional screening technology, a directed evolution approach in non-human primates, to find novel capsids with improved abilities to cross the blood-brain barrier Without better capsids, the field will remain limited to relying upon either direct delivery to the brain or systemic dosing with high doses that carry immune and phase B risks. Capsids with better biodistribution allow not just an improved route of administration for patients, but significantly open up the number and types of neurological disorders that could be realistically addressed by AAV gene therapy. We believe our novel capsid discoveries have the potential to support a significant number of programs. including current programs and those yet to be named. We recently had a publication in Molecular Therapy Methods and Clinical Development entitled Rapid Evolution of Blood-Brain Barrier-Penetrating AV Capsules by RNA-Driven Biopanning, which describes the foundational rodent proof-of-concept experiment for the TRACER platform. This platform has allowed us to advance our efforts working directly with non-human primates. The data we're seeing from the experiments using non-human primates suggest these novel capsids could have significant potential for blood-brain barrier penetration, and that these capsids could be effective for a number of neurological diseases, where optimal treatment would be IV delivery for AAV gene therapy. Treatment of diseases such as Friedreich's ataxia, Alzheimer's disease, and certain childhood disorders could benefit from these efforts. We've characterized capsids from our first proprietary library with notable results so far and continue to work on several others. We hope to share our NHP data from these novel capsid efforts at the scientific conference in the first half of this year. Lastly, let's move to the VYADC program for Parkinson's disease with Neurocrin. As Andre mentioned, the RESTORE-1 trial was placed on clinical hold by the FDA in December 2020. This followed Neurocrin, the study sponsor and IND holder, filing a safety report regarding the observation of MRI abnormalities in some study participants. The DSMB met most recently in January and requested additional clinical and imaging data. Neurocrin has committed to provide these data to the DSMB. We intend to support Neurocrin on ongoing matters related to the completion of imaging and clinical assessments as requested by the DSMB as well as the provision of other information requested by the FDA. The clinical indication of these radiological findings remains unknown and is being evaluated. We'll work to determine the potential path forward for the VYA-ADC program based on the additional information being collected by Neurocrin in response to the DSMB request. We plan to continue to provide updates across all our pipeline initiatives in 2021. I'll now pass the call on to Alison.

Thanks, Omar. I'll review the highlights of our financial results and guidance. We ended 2020 with $174.8 million in cash-cash equivalents and marketable debt securities compared to $281.5 million at the end of 2019. We booked collaboration revenues of $6.5 million in Q4 2020 and $171.1 million for the year compared to $32.7 million and $104.4 million for the same periods of 2019. The quarter-over-quarter decrease reflects the reduction of revenue related to research services and cost reimbursements from the collaborations with Nurocrin and AbbVie. Full-year 2020 revenue includes $105.2 million related to the recognition of the remaining deferred revenue for AbbVie upon the collaboration termination in the summer. All research services related to the AbbVie collaborations were completed prior to the fourth quarter of 2020. Net loss was $15.9 million for Q4 2020, and net income was $36.7 million for the full year, compared to net losses of $12.6 million and $43.6 million for the same periods of 2019. R&D expenses were $22.0 million for Q4 2020 and $108.8 million for the full year. compared to $36.6 million and $119.7 million for the same periods of 2019. The decrease in R&D expenses was primarily related to lower external costs for services supporting our clinical and preclinical pipeline programs. G&A expenses were $8.3 million for Q4 2020 and $35.0 million for the full year, compared to $9.9 million and $36.3 million for the same periods of 2019. the decrease in G&A expenses was primarily related to legal and professional fees. Turning now to our financial guidance, excluding any potential financing or business development activities in 2021, we expect to end the year with cash equivalents and marketable debt securities between $50 and $60 million. Based on our current operating plan, we expect this cash balance, along with the amount that we expect to receive for reimbursement of development costs from the Nurocrin collaboration, We'll continue to be sufficient to meet our needs for projected operating expenses and capital expenditures into mid-2022. We've consistently demonstrated a disciplined financial approach and strategic partnering strategy, and we'll continue to evaluate opportunities to thoughtfully fund our business. We look forward to continuing our progress through multiple milestone events across our programs in 2021. And with that, we'd like to now open the call up for questions. Operator?

Ladies and gentlemen, if you have a question at this time, please press star then 1 on your touchtone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the pound key. To prevent any background noise, we ask that you please place your line on mute once your question has been stated. Our first question comes from the line of Phil Maydew with Cowan. Your line is open. Please go ahead.

Good afternoon. Thanks for taking my question. Just two questions from us. First, on the HTT clinical hold Are you able to give us any more information about what it is you have to accomplish and what's going to be in your complete response that's submitted to the FDA in the first half of the year?

Yeah, thanks, Phil, for the question. Omar, I'll turn it to you for this.

Yeah, thanks, Phil. So the FDA's concerns are limited to TMC issues. And, you know, just to emphasize that there's been no concerns with the preclinical safety or toxicity Really, the request from the SEA relates to sort of two pieces of data. One is information regarding devices, and we're seeking that from the third parties that have been involved in the manufacture or licensing of those devices. So, I mean, that's almost a pure information request. And then the second relates to the biocompatibility of the gene therapy product, not just with the cannula that's used to infuse the the gene therapy, but also the entire fluid pathway, so the tubing and syringes which are used as well. And so we're generating that biocompatibility data, and that will be the other significant piece of the information that we'll submit to the FDA in response to the clinical hold.

That's very helpful. And then second, on the RESTORE trial, what do you hope to learn over the next few months that could better elucidate either the causes or consequences of the MRI abnormalities? Are you watching the patients to see if those abnormalities cure themselves, or is there other information that's particularly important that you'd like to submit to the FDA?

Yeah, so thanks, Phil. So there are some imaging data that we're going to get at a later time point for the patients that were enrolled in the Phase I. And for the RESTORE study, there are a a couple of additional clinical assessments that they're going to be gotten on for those patients, as well as additional PET scan for the patients that were in the RESTORE-1. So that's information that Nurocrin is working, and we're supporting them to collect over the coming months.

That's very helpful. Thanks for taking my questions. Thanks, Phil.

Thank you. And our next question comes from the line of Laura Chinko with Woodbush Securities. Your line is open. Please go ahead.

Hey, guys. It's Ken Shields on for Laura Chinko. Thanks for taking our question. So the first is, how are you guys prioritizing the pipeline with respect to cash position? Will you guys still plan to develop BYADC independently at this point?

Yeah. So... We have a number of programs that we've been advancing. As we've said, we'll look to announce some of these programs at the scientific meetings and throughout our presentations in the first half of the year. At this point on the BYDC program, what we're focused on is getting the additional information that the DSMB has requested. Based on that, we're going to be able to make an informed portfolio decision as to the best path forward for the program. But at the moment, the key priority for us portfolio-wise is on the Huntington's program to submit the complete response and then advancing some of the earlier stage program, including some of the novel payloads and some of the programs that are enabled by the novel capsids that we've been working on. So we'll look forward for an opportunity in the first half of the year to provide updates on the full portfolio.

Okay, thanks. And then I guess just one more. I mean, you mentioned the novel capsid programs, and it looks like you guys have been exploring them in non-human primates, and you're going to be sharing data later this year. Could you provide an update on maybe what the next steps or the overall strategy will be there going forward? Thank you.

Sure. Omar, you want to address this? Yeah, of course.

So in terms of the next steps from the first series of capsids that we're getting from the first library that we searched for, that's a platform of human primates. So those capsids that... very promising in terms of their performance characteristics versus AAV9, for example. Those capsids are now in advanced stages of characterization, including understanding the manufacturability of the capsids as well as identifying potentially the receptors that are involved in the apparent improvements in transduction that we're seeing with these capsids. So there's a sort of detailed characterization from the first tranche of capsids that are emerging from the libraries. We then have a significant number of libraries from a number of different parental capsid serotypes that are now going through the tracers. Some are in late stages of the tracer screening, others are in earlier stages, and we plan to advance those through the tracer process and then begin to characterize the prompts and capsids that emerge from those as well. The second part of the strategy will relate to deploying the tracer platform for other captive characteristics that would be beneficial for neuroAV gene therapy, including cell-specific tropisms for the different cell types in the nervous system, as well as potential other tissue systems as well.

Okay. Thanks so much, guys.

Thank you. And our next question comes from the line of Jay Olson with Oppenheimer. Your line is open. Please go ahead.

Hi, this is Matt on for Jay. We were wondering, I guess, generally, how is your view for gene therapy in Parkinson's, if that's changed at all as a result of the clinical hold on BYADC? And also, in general, maybe just given recent setbacks for others who have gene therapies, including Bluebird and Unicare, obviously different, but what would you just say to investors who may now perceive gene therapy generally in kind of a negative light? Definitely appreciate the color. Thank you.

Yeah, thanks, Matt. Well, Mark, if you want to start, I may add to your comments.

Yeah, I mean, I think, you know, obviously the patient safety is our top priority. And so in terms of the VYADC program, our goal is to really determine whether the radiological findings that we've been reported have any clinical significance. And so that's the immediate focus in understanding that. And then as we get that information and can prepare those requests to the DFMB and also respond to the FDA's request for more detailed assessment of the risk benefits of the product, we'll in parallel determine the next steps for the BYADC program You know, I think in terms of the field of gene therapy, I think one of the things that's probably important to differentiate from is the actual type of viral vector that's used. So an AV is generally a non-integrating virus, and that's somewhat different to lentivirus, which is an integrating virus. And so the safety liabilities from AV are quite different from lentivirus. So we anticipate limited read-throughs from the challenges that may be, for example, blue goats, blue birds are seeing. Andre, do you want to add anything to that?

I'll only add that part of our endeavor with novel capsids is to be able to lower the doses to one when we deliver systemically. And that may be like most other therapeutics where there could be some liabilities that start surfacing with the higher doses. So that's part of the benefit of getting improved capsids with better properties. It may allow for lower doses to be administered with the benefit on both the safety and the efficacy fronts.

Got it. That's helpful. Thank you, and looking forward to the novel captive data. Appreciate the time. Thanks.

Thank you.

Thank you. And again, ladies and gentlemen, if you have a question at this time, please press star then 1. Our next question comes from the line of Jeff Hung with Morgan Stanley. Your line is open. Please go ahead.

Hi, guys. This is Hannah. I'm for Jeff. So just two quick questions. So for Parkinson's, what kind of protocol amendments are you thinking might be necessary Is it more for monitoring, or are there other ways to change the administration to reduce the risk of the MRI abnormalities? And then just second, any read-through to the Huntington's program since the drug candidate is also injected directly into the brain? Thank you.

Yeah, thanks for your questions, Anna. Omar?

Yeah, in terms of the protocol amendments, the most important, The most immediate protocol amendments are really focused on adding the additional imaging as well as clinical assessments that the DSMB have requested. So we're not anticipating otherwise any significant change in the route of administration or the infusion procedure, but really the protocols are being amended right now to implement the additional assessments that have been requested, so MRI and clinical assessments. In terms of potential breakthrough, I mean, I think it's important to understand that the two programs are quite different. And so they both utilize intraparenchymal administration. However, the vectors are different between the two programs. So in the VYADC program, it's AAD2, whereas in the Huntington's program, we're using AAD1. Also, the Carlton's program is a is a protein that's an enzyme that's being replaced that's quite different to the Huntington's where we're delivering a microRNA to knock down the toxic Huntington species. The third thing is that the doses are quite different between the two programs because the microRNA that we're using in Huntington's is extremely potent. And so we're using significantly lower doses And the fourth thing is that we've got a very extensive non-human primate safety package with data up to one year after dosing in non-human primates at a range of doses. And so we believe that's also going to be important in understanding the safety profile of the VYH2C01 program. So we're looking forward to submitting our response to the FDA and anticipating moving forward with the clinical trial once the dosing is listed.

Great, thank you. Thank you. And our next question comes from the line of Brian Snorky with Baird. Your line is open.

Back dialing in for Brian. Thank you so much for taking our questions. The first one is a bit more of a housekeeping question. We were wondering if you could provide some comments about the financial implications of the Neurocrine dissolution of the partnership. And then the second question is more quite early, but the novel caps are very interesting. And you did mention some potential indications, but we were wondering if you could provide some more color as to what areas you'd be looking to move these assets into. Thank you so much.

Yeah, thanks for your questions. Allison, on the financials?

Sure. So, on the financial side, you know, we've projected that we'll end 2021 with $50 to $60 million of cash and cash equivalents on hand, and that we continue to have cash on hand to reach mid-2022, which is consistent with what we've said in the past. We continue to execute on a strategy with financial discipline and evaluating strategic alternatives for additional financing to run our business. So, you know, at this point, I think no real impact from the determination of the Narcon program.

And on your second question around targets for novel capsids, so the early campaigns that I've read through and that are in various stages of characterization, these are for IV delivery to enable good transduction of target cells, different regions of the brain. So we have an opportunity with different capsids that have different distribution to be able to marry the neuropathology with the distribution of a given capsid. So that's the process that we have gone through and will continue to go through as we read through additional capsids. And that's the type of information that we'll work to provide an update on in the first half of the year.

Awesome. Thank you so much. It's very exciting.

Thank you.

Thank you. And our next question comes from the line of Aiden Housenoff with Benchmark. Your line is open. Please go ahead.

Hi. Thank you for taking my questions. The first question is about Parkinson's program. So you have 23 patients that were treated in Phase I studies so far. Did you see any MRI abnormalities in those 23 patients, and did DSMB request the MRI images from the Phase I trials as well?

Yeah, thanks, Aidan. Omar?

Yeah, so a couple of things to note. So, I mean, just the DSMB have requested MRI scans to be reviewed from the Phase I B patients. One of the differences between the Imaging that was collected in the phase one studies and in restore one is the timing of the imaging. So in restore one, there was imaging out to one year, whereas in the phase one studies, the imaging went out to six months. So one of the things that the DFMB are requesting is to get longer term imaging from those phase one patients, as well as a review of the imaging already collected to date. So it's not really possible because it's not an apples-to-apples comparison on the imaging front yet until we've had longer-term imaging data from the Phase I patients.

Okay, thank you for that. Yeah, that's helpful. And for Huntington, I have another question. So you mentioned that this is this could be a potential best-in-class therapy. Could you give us some more color? Why do you think it could be the best-in-class? And do you have any specifics from the preclinical data other than the safety? Thank you.

Yeah. Thanks for that. So what we know from our preclinical work is that we have a very potent construct We know also that through the work we've done to optimize the delivery, that we get some good transport of the vector genomes through retrograde and intergrade travel. So the route of administration that we've chosen to target the putamen and the thalamus from the preclinical work suggest that we should be able to get a broad distribution of HTT knockdown. And we have results as Omar mentioned from our transgenic rodent models showing that we get some strong phenotypic rescue in these HD disease models, transgenic models. So it's the totality of the evidence that we've developed to date that give us some confidence about the profile of the program. And we'll look to present additional preclinical results later this year on the program so that we can show the longer-term results that we've had in non-human primates where we've studied the knockdown up to 12 months. We'll be able to provide updates on these longer-term NHP experiments.

All right. Thank you very much. This is helpful. Thank you.

Thank you. And I'm showing no further questions at this time, and I would like to turn the conference back over to Andre Turan for any further remarks.

Okay. Well, thanks, everyone, for joining us today, and we look forward to keeping you updated on our progress through the rest of the year. Thanks very much.

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program, and you may all disconnect. Everyone, have a great day.

Thank you.