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Subjects: EARNINGS, Photo/Multimedia, Conference Call, Webcast, Business Update

Exscientia Business Update for Second Quarter and First Half 2022


Exscientia plc (Nasdaq: EXAI)

Recent developments in the Company's pipeline, collaborations, and operations, as well as financial results for the second quarter and first half 2022, are summarised below. In addition, Exscientia will host a conference call Thursday, August 18 at 1:30 p.m. BST / 8:30 a.m. ET to provide an overview of the company's pipeline and corporate strategy.

"In the first half of 2022, we delivered on major new and existing collaborations, advanced our pipeline programmes, and marked the 10-year anniversary of Exscientia's founding. Over the past decade, we've pioneered an AI-driven approach to modernising drug discovery and development, and it was fitting that this quarter we also announced topline data from our EXS-21546 programme, one of the first AI-designed molecules to enter clinical trials," said Andrew Hopkins, D.Phil., Exscientia's founder and Chief Executive Officer. "With over $730 million in cash, we believe we are in a strong position to deliver across our portfolio of drug projects for the long-term. Our strategy creates an agile interplay between our internal pipeline and partnered programmes, enabling us to move candidates between the two depending on the best fit for Exscientia and our partners, as well as how we can best impact the probability of success for patients."

Recent Highlights

Progress across internal and partnered pipeline, leveraging the Company's precision medicine platform, as well as key components of Exscientia's technology and operations.

Internal pipeline

Wholly, majority and co-owned programmes focused on areas in which Exscientia believes it can improve the probability of success, including precision oncology

Partnered programmes

Utilising a scalable end-to-end platform to advance a broad pipeline, while also generating significant cash inflows to support advancements

Recent clinical progress highlights ability of the Company's advanced, AI-based platform to create novel molecules with high level of translatability to human biology

Exscientia's approach allows for significant cash inflows to drive the business

Expanded leadership team in critical growth areas

Select peer-reviewed publications and scientific meeting presentations during the quarter

Investor call and webcast information

Exscientia will host a conference call on Thursday, August 18 at 1:30 p.m. BST / 8:30 a.m. ET. A webcast of the live call can be accessed by visiting the "Investors and Media" section of the Company's website at investors.exscientia.ai. Alternatively, the live conference call can be accessed by dialling +1 (888) 330 3292 (U.S.), +44 203 433 3846 (U.K.), +1 (646) 960 0857 (International) and entering the conference ID: 8333895. A replay will be available for 90 days under "Events and Presentations" in the "Investors and Media" section of the Exscientia website.

Second quarter and first half 2022 financial results

For the convenience of the reader, the Company has translated pound sterling amounts to U.S. dollars at the rate of £1.000 to $1.2162, which was the noon buying rate of the Federal Reserve Bank of New York on June 30, 2022.

Revenue: Recognised revenue for the three and six months ended June 30, 2022, was $8.7 million and $17.2 million respectively, representing an increase of $8.3 million and $10.4 million compared to the three and six months ended June 30, 2021, primarily due to delivery on an increased number of projects across our second collaboration with BMS, revenues generated from the extension of the BMS agreement to leverage Exscientia's precision medicine platform, and recognition of remaining revenues following the termination of the Bayer agreement.

R&D and cost of drug discovery: Due to various collaboration structures, expenditure incurred in relation to research and development activities may be recognised within one of several financial statement captions. The tables below show how these expenses are separated across the accounting categories.

Three months ended June 30, 2022 ($ millions): 

 

COGS 

R&D 

Share of JV 
loss 

Total 

Partnered Programmes 

10.9 

10.9 

Internal Pipeline and Technology Development 

40.2 

0.3 

40.5 

Total 

10.9 

40.2 

0.3 

51.4 

Six months ended June 30, 2022 ($ millions):

 

COGS 

R&D 

Share of JV 
loss 

Total 

Partnered Programmes 

17.7 

17.7 

Internal Pipeline and Technology Development 

68.8 

0.7 

69.5 

Total 

17.7 

68.8 

0.7 

87.2 

Research and development expenses: R&D expenses for the three and six months ended June 30, 2022, were $40.2 million and $68.8 million respectively, as compared to $9.9 million and $15.1 million for the same period ended June 30, 2021. The increase in research and development expenses was in part due to the growth of Exscientia's internal and co-owned portfolio, in addition to increased headcount and other costs associated with the Company's continued technology investments. Share-based compensation accounted for $9.1 million and $12.1 million for the quarter and half year ended June 30, 2022, as compared to $1.6 million and $1.9 million for the same period ended June 30, 2021.

General and administrative expenses: G&A expenses for the three and six months ended June 30, 2022, were $14.7 million and $24.2 million respectively, or 22.3% and 21.9% respectively of total operating expenses. For the three and six months ended June 30, 2022, G&A expenses increased by $5.6 million and $11.1 million compared to the three and six months ended June 30, 2021, primarily associated with an increase in personnel costs and additional costs incurred in relation to the operation of a listed company. Share-based compensation accounted for $3.3 million and $4.6 million for the quarter and half year ended June 30, 2022, as compared to $1.7 million and $2.0 million for the same periods ended June 30, 2021.

Cash inflows: For the second quarter 2022, Exscientia received $111.0 million in cash inflows from its collaborations as compared to $39.5 million during the second quarter 2021.

Cash, cash equivalents and bank deposits: Cash, cash equivalents and bank deposits as of June 30, 2022, were $732.0 million as compared to $683.7 million as of December 31, 2022. This includes a 12-month fixed term deposit of $121.7 million.

SELECTED CONSOLIDATED STATEMENT OF OPERATIONS, CONSTANT CURRENCY CONVERSION (unaudited)

($ millions, except per share data, at the rate of £1.000 to $1.2162)

 

Three months ended 
June 30, 

Six months ended 
June 30, 

 

2022 

2021 

2022 

2021 

Revenue

8.7 

0.4 

17.2 

6.8 

Cost of sales

(10.9) 

(4.4) 

(17.7) 

(9.1) 

Research and development expenses 

(40.2) 

(10.0) 

(68.8) 

(15.1) 

General and administrative expenses 

(14.7) 

(9.1) 

(24.2) 

(13.1) 

Operating expenses

(65.8) 

(23.5) 

(110.7) 

(37.3) 

Foreign exchange gains/(losses)

27.7 

(3.4) 

39.5 

(3.5) 

Loss on forward contracts

(13.7) 

(13.7) 

Other income

1.9 

1.0 

3.6 

1.5 

Operating loss

(41.2) 

(25.5) 

(64.1) 

(32.5) 

Finance income/(expense)

0.4 

0.5 

(0.1) 

Share of loss on joint ventures

(0.3) 

(0.5) 

(0.7) 

(0.9) 

Gain on derivative financial instrument 

0.0 

1.7 

1.7 

Loss before taxation

(41.1) 

(24.3) 

(64.3) 

(31.8) 

Income tax benefit

6.3 

1.7 

10.6 

2.6 

Loss for the period

(34.8) 

(22.6) 

(53.7) 

(29.2) 

Net loss per share

(0.29) 

(0.86) 

(0.44) 

(1.02) 

SELECTED CONSOLIDATED BALANCE SHEET, CONSTANT CURRENCY CONVERSION (unaudited)

($ millions, except per share data, at the rate of £1.000 to $1.2162)

 

June 30, 2022 

December 31, 2021 

Cash, cash equivalents & short-term bank deposits 

732.0 

683.7 

Total assets

849.0 

779.2 

Total equity

650.8 

689.4 

Total liabilities

198.2 

89.8 

Total equity and liabilities

849.0 

779.2 

SELECTED CONSOLIDATED STATEMENT OF CASH FLOWS. CONSTANT CURRENCY CONVERSION (unaudited)

($ millions, except per share data, at the rate of £1.000 to $1.2162)

 

June 30, 2022 

June 30, 2021 

Net cash flows from operating activities

63.3 

4.5 

Net cash flows used in investing activities

(133.1) 

(4.2) 

Net cash flows from financing activities

 (3.7) 

222.3 

Net (decrease)/increase in cash and cash equivalents

(73.5) 

222.6 

Net increase in cash, cash equivalents and short-term bank deposits 

48.2 

222.6 

About Exscientia

Exscientia is an AI-driven pharmatech company committed to discovering, designing and developing the best possible drugs in the fastest and most effective manner. Exscientia developed the first-ever functional precision oncology platform to successfully guide treatment selection and improve patient outcomes in a prospective interventional clinical study, as well as to progress AI-designed small molecules into the clinical setting. Our internal pipeline is focused on leveraging our precision medicine platform in oncology, while our partnered pipeline broadens our approach to other therapeutic areas. By pioneering a new approach to medicine creation, we believe the best ideas of science can rapidly become the best medicines for patients.

Exscientia is headquartered in Oxford (England, U.K.), with offices in Vienna (Austria), Dundee (Scotland, U.K.), Boston (Mass., U.S.), Miami (Fla., U.S.), Cambridge (England, U.K.), and Osaka (Japan).

For more information visit us on https://www.exscientia.ai or follow us on Twitter @exscientiaAI.

Forward-looking statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including with respect to the progress of discovery and development of candidate molecules, and the timing and progress of, and data reported from, clinical trials of Exscientia's product candidates, and Exscientia's expectations regarding its projected revenue and cash runway. Any statement describing Exscientia's goals, plans, expectations, financial or other projections, intentions or beliefs is a forward-looking statement and should be considered an at-risk statement. Such statements are subject to a number of risks, uncertainties and assumptions, including those related to: the impact that the COVID-19 pandemic could have on the Company's business, including the scope, progress and expansion of Exscientia's product development efforts; the initiation, scope and progress of Exscientia's and its partners' planned and ongoing pre-clinical studies and clinical trials and ramifications for the cost thereof; clinical, scientific, regulatory and technical developments; the process of discovering, developing and commercialising product candidates that are safe and effective for use as human therapeutics; and the endeavour of building a business around such product candidates. In light of these risks and uncertainties, and other risks and uncertainties that are described in the Risk Factors section and other sections of Exscientia's Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC) on March 23, 2022 (File No. 001-40850), and other filings that Exscientia makes with the SEC from time to time (which are available at https://www.sec.gov/), the events and circumstances discussed in such forward-looking statements may not occur, and Exscientia's actual results could differ materially and adversely from those anticipated or implied thereby. Although Exscientia's forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by the Company. As a result, you are cautioned not to rely on these forward-looking statements.


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News published on 17 august 2022 at 16:05 and distributed by: