Amgen, Inc. (AMGN) Presents at Jefferies Virtual London Healthcare Broker Conference Call – (Transcript)


Amgen, Inc. (NASDAQ:AMGN) Jefferies Virtual London Healthcare Conference November 18, 2020 12:00 PM ET

Company Participants

Peter Griffith – EVP & CFO

Arvind Sood – VP, IR

Conference Call Participants

Michael Yee – Jefferies

Michael Yee

Good afternoon, everyone, and welcome to another great session here at the Jefferies Virtual London Healthcare Conference. I am here virtually in London right behind me, and Peter was just saying that he used to work there as well, so we had a good laugh about that. And hopefully, in 2021, we’ll be back there in person.

I wanted to introduce my wonderful colleagues and friends here. You know them, Executive Vice President and CFO of Amgen, Peter Griffith on there with us. And everybody knows Head of Investor Relations, Arvind Sood, with us as well.

Question-and-Answer Session

Q – Michael Yee

I guess I just wanted to take a step back for Peter. Maybe, Peter, 2020, I guess, people like to overuse the word unprecedented year, but it was truly a unique year. And Amgen, I think, has done a pretty good job of managing through the pandemic.

So maybe just make a statement first about your state of the affairs for 2020 and how people should be thinking about it as we come out of 2020 into the fourth quarter into 2021 because COVID cases are spiking again. So the state of your business here in the middle of a pandemic.

Peter Griffith

Mike, thank you very much. And thank you to Jefferies also for inviting us. Arvind and I are hoping to do an admirable job this afternoon in London so that we move up in the position on your video every week. We’ve fallen back to about 1:20. So my wife admonished me, “You better do a good job with Mike and move up.”

Michael Yee

Give me a tidbit here and we’ll put you first. Give me something.

Peter Griffith

So look, we continue — everybody continues at Amgen to execute on the difference at Amgen, which is discovering, developing, manufacturing and delivering innovative medicines for grievous and serious illnesses all over — to patients all over the world. So that’s #1.

In 2020, I’m just going back and circling back to your question really focused on COVID and the effects, we continued to stay focused on execution, innovation and integration, and first and foremost, safety for the employees and for our team.

But on integration, right, through the pandemic, we integrated in Otezla timely. We used $13.4 billion of our shareholders’ capital almost a year ago. It was November 21 a year ago when we closed. And that has worked out to be an integration that’s on time and on track.

Secondly, in terms of execution, we can talk about the results in a moment here, but the execution has been strong. It’s been reliable. And three, innovation. We’ve continued to work through that in a strong way, most notably with sotorasib and tezepelumab. And then we’ve got some — what we think are some exciting opportunities coming behind it in BiTEs and so forth.

So going through, how did COVID really affect us in 2020? Look, we went 11% revenue growth in the first quarter. We backed off to 6% in the second and back up to 12% in the third quarter. So we continued to execute on that. We saw physician-patient interactions have returned to kind of near pre-COVID levels with total prescriptions, down 2%; physician visits, down about 10% in the third quarter versus pre-COVID and third, I would recognize that we had a slowdown in certain expenses in the second quarter due to COVID-19, but those were deferred, not canceled. So operating expenses are meaningfully increasing and those investments as we invest in our pipeline and launch preparations here in the fourth quarter. So we’re very excited about that.

Mike, we left our revenue guidance range wider than normal at this time of year and EPS a little bit wider, which reflects the uncertainty created by the recent resurgence of the infections everywhere. We see the current resurgence in cases as a potential headwind for the business. We’re closely monitoring it. As you know, with Dr. Reese and the research and development group here in our center for observational research. We’ve got modeling, and we keep a close eye on it by metropolitan statistical area and so forth.

So we’re just seeing how that could affect the fourth quarter and could there be some spillover into 2021. I’m kind of saying to myself as I wrote myself those notes, the virus certainly doesn’t know December 31 from January 1, so it’s just going to keep rolling on for now. And we don’t expect anything at all like we saw earlier in the year. The health care systems know much more about how to treat 19. We’ve got some good therapeutics out there. We’re better prepared to do so than earlier in the year. On the margin, though, we’re not ruling out some impact, and we’ve tried to incorporate that into our planning assumptions for the fourth quarter and perhaps some spillover in the next year. But as I said before, execution, integration and innovation. We’ll continue to work that and work it hard…

Michael Yee

Let me just say, typically, Peter, taking the reins from your predecessors, typically, Amgen is pretty conservative when they start off the guidance each year. And you’ll be giving guidance in the beginning of 2021, still near, let’s be honest, near or at the peak COVID levels, right? Where the new administration may begin around January 21. So it will be an interesting time period. But I guess one would suspect that you’re going to have to be conservative about that.

So I’m just trying to think about how you’re modeling that out and how, more importantly, 2021, are there specific drivers to the top line on ’21 versus ’20 in expenses? Without getting too far ahead of ourselves…

Peter Griffith

Yes. And as you know, historically, Amgen doesn’t guide ahead of year. But what I’d love to do, if you’d let me, is just share what we always talk about in terms of our revenue growth drivers. Those remain consistent. We tend to be very reliable and very consistent, so we’re going to continue to execute on those. Our commercial group, led by Murdo Gordon, has done a great job executing through the pandemic in creative ways to reach patients and so forth during the pandemic.

So volume growth from the recently launched products, we’re going to continue to count on that. Prolia, Repatha, Otezla, Aimovig, our hemog portfolio, Nplate, KYPROLIS, BLINCYTO, XGEVA, we’re going to continue to look at that. We don’t usually provide specific product guidance, but recall in August of ’19, my predecessor, David and Murdo shared when we acquired Otezla, that we would see projected growth in the low double digits on average over the next 5 years. And I think Murdo has reconfirmed that any number of times, we’re very pleased with Otezla and how that’s worked for us.

We’ve got new biosimilars. We like that portfolio a lot, $480 million of revenue in the third quarter. So that’s working out well. I would note, too, we’re talking about the top line. But our returns and our profit profile on those, we’re very pleased with that. AVSOLA, we’ve got one coming on Rituxan, so we’re feeling good about that. As we think about ’21, we’re very focused on the successful launch once we get through the regulatory process of our KRAS G12C drug, sotorasib. And certainly, 2021 will be a year we’ll make some investments to get ready to go with tezepelumab with our partner, AZ, on that for severe asthma.

I would note, too, Mike, I think it’s really important, and I know you’re very focused on it, too. 2020 is the first year when Amgen will surpass $1 billion in revenue in JPAC. So that region goes past $1 billion. Very important, I spend a lot of time globally. As you noted, my office was across the street from your background there. So that’s important to us and…

Michael Yee

What drugs contributed to the JPAC region the most? So when I look at my products, what are the drivers here? Which ones?

Peter Griffith

Arvind, I’m trying to…

Michael Yee

What are the big drivers there?

Peter Griffith

Our big drivers of it — I will say we have talked about, Mike, and it’s very important, EVENITY has had a terrific launch in China.

Michael Yee

EVENITY?

Peter Griffith

Yes. And really, really strong for us. In China, it’s — I would make the note in China that BeiGene has actually started commercializing an indication on XGEVA on the giant cell tumor of the bone, so we’re excited about that. And in Japan, as you know, we reeled back in the 49% of Astellas we didn’t own in April, so we’re kind of controlling a little bit more of our destiny there. So that…

Michael Yee

Which drug is that?

Peter Griffith

Arvind, what drugs are we…

Arvind Sood

Yes. So that would include our newer products, Mike. They were part of the collaboration with Astellas. So that would include products like Repatha. Just some of the newer products that we have launched over the past few years.

Michael Yee

So legacy or it’s not legacy, but new products — that’s not the right word. Products that have launched are still growing in ’21. I would say, if I remember correctly, the bone franchise does see some impact from COVID, Peter, right? So that’s fair. So that’s one of the drivers.

Peter Griffith

Mike, really good point, and I’m glad you brought it up. So on Prolia in particular, normally, the second quarter would have been — the second and the fourth are generally, I believe, a little bit stronger. And the second quarter was a little bit softer this year because the vulnerability of the, generally, the postmenopausal osteoporosis patient, they didn’t go in. So we are anticipating some type of echo because it’s a 6-month administration, as you know, in the fourth quarter. So we’re watching that closely. We’re hoping it isn’t. And there certainly has been work done around making sure we get to those patients and — or alternatively, they’re able to get in and get there…

Michael Yee

That’s right. That’s kind of interesting because you might have thought that there would be an improvement in the environment so that fourth quarter would grow over the second quarter. So the same people who got the injection there come back again in the fourth quarter, plus new patients, But it’s — but COVID’s still out there. So how many people are coming back in…

Peter Griffith

Yes.

Arvind Sood

So I was just going to add, Mike, because I think it’s an important point. This is one area that perhaps got hit the hardest at the beginning of the pandemic because these products have to be administered by health care professional. We saw a pretty significant decline in the rates of osteoporosis diagnosis, particularly in the U.S. at the beginning of the year. Now the good news is that in Q3, we saw a meaningful recovery. The rates of osteoporosis diagnosis in the U.S. had actually recovered to about 70% of pre-COVID levels. So we, of course, have many efforts underway to assist patients with continuity of care to make sure that they continue to have access to these products.

Michael Yee

Arvind, can you send someone to their house to do it?

Arvind Sood

We can’t send someone to the house, but we do have mobile nursing platforms, actually, yes. So they can come to the patient’s house and deliver to — deliver the product to the patient. But there are other mechanisms that we can also deploy, such as identifying alternate sites of care where the patient can go and get the product injected.

Michael Yee

So look, that business, we got a little in reach there, but that business is a driver in 2021. By the way, it’s just deferred injection, let’s be honest here, right?

Peter Griffith

We like to think that.

Michael Yee

You’ve got biosimilars, which just did $480 million in the quarter, right? So that’s a $2 billion run rate. So that’s a driver. That’s still growing. And there’s your new biosimilar in 2021. That’s what you’re implying.

Peter Griffith

We’ve got a couple of new ones coming up — coming around. Arvind, you want to talk a little bit about maybe how we’re rolling out AVSOLA and what we’ve got coming against Rituxan and so forth?

Arvind Sood

So Mike, as you know, there’s our biosimilar version of Remicade, which is in the process of being rolled out now, so that’s happening now. And then we also have a so-called BsUFA date. It’s an FDA action date, as you know, for biologics in December. And that’s for a biosimilar version of Rituxan, so we would also expect to launch that product next year.

It’s interesting, you’ve highlighted $480 million in revenues that we had in Q3, which is spot on. So this business is indeed annualizing at $2 billion a year. But I think in many forms, the trajectory of this business is expected to be different because it’s going to be defined by new competitors who come on the market, the amount of market share that we take, what happens to pricing? So there are many different issues.

But one of the key aspects that we have been highlighting for investors is that over the next few years, one of the fundamental growth drivers for this business is going to be the addition of new products. So Peter and I have just highlighted 2: AVSOLA, and then the biosimilar version of Rituxan. But as you know, we are also developing a biosimilar version of Soliris. And we have a biosimilar version of EYLEA that we have communicated and also a biosimilar version of Stelara that we intend to develop and commercialize down the road.

Michael Yee

Soliris are still on Phase III, right? So I don’t know what — if there’s anything to update on that?

Arvind Sood

Nothing new to report on that. It’s still in Phase III. As per the agreement that we have with Alexion, that’s going to be commercialized in 2025 in the U.S. But yes, we are progressing just fine with these products.

Michael Yee

Look, I think you originally gave guidance. If I go back to my — what was the R&D Day? That was many years ago, 2000 and something…

Arvind Sood

2014. October of 2014.

Michael Yee

2014, in New York City, a $3 billion biosimilar guidance. Peter, you weren’t there at the time, but they gave $3 billion. Nobody believed it. You’re telling me you’re at $2 billion, and I better go look at where the numbers are because this probably could get to $3 billion. Are you guys still comfortable with that?

Peter Griffith

Well, I don’t think – we’re not commenting, again, on the long-term guidance. But what we would say, Mike, is we’re very pleased with the franchise. And we’re actually really pleased, as I said, with the return profile and profitability. We get asked that a lot of times, and I’ll give the example that $100 innovative product with a $10 cost of manufacturing is a 90% gross margin. Well, a biosimilar, $50 of the same cost of goods sold, $10 is still an 80% gross margin. And this company, we pride ourselves on strong execution.

And I will also say on the commercial side — and I think biosimilars is worth the time we’re allocating to it here this morning. Our commercial leader, Murdo Gordon — and we look at this and we say to ourselves, we’ve had to play a lot of defense. So we know some offense, right? We’ve learned offense from the defense. We go-to-market and we commercialize this with our commercial therapeutics in the same area, whether it’s AMGEVITA with the inflam and immunology portfolio or the other two with our oncology portfolio. So that’s really important. We don’t bucket them as a separate bucket of biosimilars. And so Murdo uses the team in a very thoughtful way. And I think that all helps, right? At the margin on…

Michael Yee

Those people, Peter, I think it’s the same salespeople.

Peter Griffith

Correct. That’s correct. It’s another arrow in the quiver.

Michael Yee

But here, let me tie these things together. The question for some people is figuring out revenue growth, which we kind of talked to some of those drivers, and we — I would just close the loop, obviously sotorasib and tezepelumab are the next 2 big ones coming. So you got to model those out. Clearly, there should be some revenue growth across the next few years.

But expenses and margins, because expenses are believed to be going up — logically, I don’t think you’re reducing expenses. But the expenses are going up, and you’re investing particularly where there are a little more primary care markets. And we’ve done a lot in the pipeline, Peter. So R&D is generally going up. So the 2 of those together with some products that maybe have lower operating margins because they’re less specialized things have people wondering if the operating margin is going to be flat to down, flat to up and where that is. And that matters to drive earnings.

How do you think about where those two things combine, revenue and OpEx, to drive a stable operating margin? What would you like to do over the next couple of years?

Peter Griffith

Well, again…

Michael Yee

Keep working, yes.

Peter Griffith

Yes. We don’t go out in the future, but I’ll be very clear that we believe operating margin is a critical measurement of — in the financial profile of the company. And we expect our operating margin to continue to be at the top or right towards the top of the industry. We think that’s really important. And you ask a really good question, Mike, I think there’s opportunities in operating expenses to be efficient. This company had very strong productivity muscle. You referred back to the guidance given in 2014 when I believe the operating margin was maybe in the mid-30% range. And then that worked it, so maybe it was 37% or 38%. And I think it would play out — sorry?

Michael Yee

More on the 50s. [Indiscernible] looking right above it.

Peter Griffith

Yes. We were 52% last quarter, 55% in the second quarter. So it worked its way up into the low 50s. So that’s — this company has strong productivity, efficiency muscle, transformation muscle. We exercise that muscle every year in our budgeting process. We believe it’s important to digitize the business and make it more efficient from that standpoint. We’re putting in — we’re finishing up the plant in Rhode Island, Providence, Rhode Island, AR30, we call it. It’s our next-gen 2.0 biomanufacturing plant built at half the cost, half the time, and they’ll operate at less than half the OpEx. So we’re very, very focused in every one of our aspects, whether it’s manufacturing and operations, research and development, SG&A. So we’re…

Michael Yee

And without going into the details of — no, we’re not giving launcher guides. What we’re seeing is you look at that operating structure. The revenue guidance, Murdo and everyone, I know you guys will figure that out. And then you look at the operating structure with your team and you say there’s still levers to get there. So you feel very comfortable we’re not going to be hit on operating margin, and you shouldn’t worry. That’s what you’re saying?

Peter Griffith

The most important thing to say, Mike, is we want to optimize, maximize our after-tax cash flows. We understand that there may be some — we’ve got launches coming, we may need to make some investments. So it will come and go. The most important thing is we want to maintain kind of that top quartile position in how we think about operating margin. We think it’s important. And so we want to continue to invest appropriately. We want to be thoughtful about that. We think growth is really, really important. And Murdo, Dr. Reese, we’ve indicated we’re going to continue to invest in an internal innovation.

We haven’t talked yet about capital allocation, but that’s #1 on the list. So we’ll finish this year north of $4 billion in internal research and development. We’ve indicated that’s #1 on our capital allocation hierarchy. We’ll continue that. So the most important thing when you think about us is we’re going to continue a thoughtful, disciplined capital allocation. Internal innovation first. Our CapEx, including things like the Rhode Island plant that we’re very excited about, comes online in the first quarter of 2022, digitization of the business. Then we’re going to continue to look after that for external innovation through business development.

And then we, as you know, Mike, we expect to continue to return capital to shareholders, grow the dividend. We’re $1.60 per share per quarter now. Share repurchases. We’ve indicated in the lower end of the range, closer to the $3 billion than the $5 billion. So we’re going to continue to be very thoughtful and disciplined around all that. So we think about the allocation. We think about operating margin. We think about our financial metrics, they’re all important to us, and we’ll continue to stay focused on…

Michael Yee

That was a good summary because I think this is really important. I don’t need to get in the weeds on this call about the nuances of this R&D product. When you think about your investor base and people who are looking at your stock, I don’t want to get into the details of market flows and sector rotations and all that, Peter. But you see a lot of income investors, a lot of generalist investors, a lot of health care, broader health care.

And the question that weighs on people is, are there more headwinds than tailwinds that are going to impact revenue OpEx margins? And do you feel good about the stability of the business, if not actually grow the business? And so that you can drive earnings growth and dividend growth. And I guess the answer is, yes, you can do that and you feel confident we’re going to see revenue earnings growth and dividend growth steadily over the next few years. Not giving guidance, but that’s where the business is heading.

Peter Griffith

We’re very confident in the business. I mean this business is — as I said, when we opened up, for 2020, we were focused on execution, innovation and integration, and we’re going to stay focused on those. And as a company, that’s what we’re committed to. Our innovation, I would say, we’re going to continue to invest in that. We’re very excited about what we have coming out. We haven’t had a chance to explore the BiTEs a little bit. We like that area of research that’s coming along. We’re very excited about how well the integration went on in Otezla. We’re excited about you and I visit a little bit about Asia and about the BeiGene collaboration. That’s really important to us.

As you said, in 2014, one of the other pillars was globalizing the company, right? One of the pillars, we’ll continue to do that, and that’s going well. So we think there’s a lot of opportunity there. And so that’s — those are the 3 things we’re going to continue to push those ahead. And we’re very — we haven’t liked the shape of our portfolio. We think it makes sense, and it’s working well. And we’re going to continue to push that ahead.

Michael Yee

Are there areas more to globalize? I will tell you that when people asked about BD and M&A, without getting specific in the companies, it was more thematically that Wall Street underestimates OUS opportunities. Now you did the BeiGene deal — and I need to go back to exactly get the monetization of that because they sell it and you get royalty, I can’t remember the exact deal. But they’re selling that stuff out there, and there was an economic deal. But then you did the Japan deal, right? So are there other regions before then? I can get new deals in Middle East or other area — just Eastern Europe. Are there other areas you think that Wall Street under appreciates? I don’t know — OUS companies.

Peter Griffith

Let me go back to JPAC. I think executing on JPAC is really important. So — and before I came to Amgen, when I was at EY, I spent a lot of time on the whole JPAC area. We called it APAC. And I think there’s a lot to interrogate and execute on there. China is the second largest pharmaceutical market. Japan is the third. I think it’s really important for us to stay focused on those and execute really well. You mentioned BeiGene. So we have an arrangement with BeiGene that, generally, once the product begins to come to market, we’ll market it with them for about 7 years, and then most of those revert back. There’s a process where they keep one and we get a couple of them. But notwithstanding that, we think China is ideal. We think our opportunities with them there are excellent.

Michael Yee

They do oncology only, don’t they, Peter? It’s oncology?

Peter Griffith

I was just going to say that, Mike. Really good question. We have our own general med business there. So earlier, you asked about some of the products certainly…

Michael Yee

You have a sales force there, right?

Peter Griffith

Correct. So Repatha…

Michael Yee

[Indiscernible] are those drugs.

Peter Griffith

Arvind, what’s the status of Prolia in China? I think it’s coming along, isn’t it?

Arvind Sood

Yes, that’s right. Yes. Yes.

Peter Griffith

And so we’ve got — we have a gen med business there. So look, we’ll look at opportunities anywhere, Mike, to go back and answer your question about OUS, but let’s make sure — we’ve got a great European business. I mean that’s performed really admirably, well-managed throughout the crisis beginning in April. And then we’ve got JPAC, and that’s a great opportunity for us that we need to continue to push. I mentioned, we went through $1 billion there. There’s a lot more to go. And we think of that, Mike — and investors should think about, we think it’s a decades gain. We think globalization in JPAC…

Michael Yee

Let me punch in, so JPAC, which is Asia and China, including Japan, obviously, that is north of $1 billion today.

Peter Griffith

That is correct. Yes.

Michael Yee

I presume the majority of it’s Japan?

Peter Griffith

Yes. Right.

Michael Yee

So China is a small part of that. So JPAC is north of $1 billion. You think you can steadily grow that, like, pretty nicely? I’ll give you a data point. AstraZeneca is doing $5 billion. Biggest player.

Peter Griffith

Yes. I like that number. But what I’ll say is we have talked about it. We expect 25% of our growth over the next decade to come from JPAC. And so we are meaningfully committed and invested to making sure that works. And we understand there’ll be puts and takes and so forth, but we’re going to execute on that in a very, very strong…

Michael Yee

Yes. Because I will just say, we’ll close this loop because I want to talk about 2 last products. But every company is starting to see opportunity in China. You did a BeiGene cancer deal because of the relationships in the oncology field. You do have some infrastructure in China. It’s small or modest. You’re trying to get ramped up there. But I would argue if there’s an ability for you to do some BD there in immunology or other areas, like I said, AstraZeneca is there doing $5 billion. I don’t know what can be done together or for them to help you out. Those would be some pretty interesting things that I think Wall Street is not thinking about.

All right. So that — those are the drivers. Let me ask about 2 last things in the last few minutes, either for you or Arvind. Can you make a comment about what’s next with sotorasib, on KRAS and also tezepelumab, getting details on that data and how you feel about that, specifically low eosinophils because there was a little bit of, I guess, confusion about whether someone has to be below 150. Is that stat safe? Can you just make a comment? Does that even matter? If you’re comfortable.

Peter Griffith

Arvind, I’ll invite you to comment. But Mike, we’re very — we’re getting to the World Lung Conference with the data readout in January with soto and teze, we’re very pleased. And Arvind, I would invite you to comment on those.

Arvind Sood

Yes. I mean, my comment on tezepelumab is actually very straightforward, Mike. I mean the data looks very promising. I mean we have now demonstrated that we have an effect size that is both statistically significant and clinically meaningful, both in individuals with eosinophil counts, which are in excess of 300 cells per microliter. And also, if you look at the so-called low eosinophil patient category, which accounts for about 1/3 of the patient population. Again, as defined by patients with cells or with less than 300 cells per micrometer.

And again, the result there was statistically significant and clinically meaningful. So we are looking forward to presenting this data at one of the conferences in the first quarter of next year. And as you probably know, Mike, there’s another — an additional study that’s going to read out between now and the end of the year, the so-called Score study. It’s a much smaller study. It’s not anything that we need for regulatory purposes. But what we are trying to establish in this particular study is that for those patients who have severe or uncontrolled asthma, who also need longer-term treatment with the oral corticosteroid, to what extent there is a steroid-sparing effect with tezepelumab. So that study should be reading out.

Michael Yee

That’s actually pretty important. We talk to some asthma care roles and that’s one of the big benefits of [indiscernible] store benefits.

Arvind Sood

And as I mentioned, you’re looking at about 20% to 60% of patients with severe or uncontrolled asthma, who will require long-term treatment with an oral corticosteroid.

Michael Yee

Can you comment on the below 150? Because Wall Street seem to think that, that’s really important to “save, stat, save.” But do you think that from a use case scenario that it will — there is benefit there? You don’t want to say p-values or whatever, but when we look at there’s clinically meaningful differences across these populations, 150 might be that. But it certainly — just a minimum, David might say, well, who knows, but you look at the dupi [ph] label, it says no benefit in people.

Arvind Sood

So I can go as far as without getting into the specific, hazard ratios and p-values as all of that data is going to be presented at a meeting in Q1, Mike. I can say that similar reductions in asthma exacerbation rate were observed in the subgroup of patients who had baseline eosinophil counts less than 150 cells per microliter.

Michael Yee

Right. So we don’t need p-values, but there was clinically meaningful differences there. I think that’s what you said.

Arvind Sood

Again, we saw similar reductions.

Michael Yee

Similar reductions? Okay. Yes. And that is different than dupi [ph], just to be clear.

Peter Griffith

They had no debt reductions.

Michael Yee

Okay. Good.

Arvind Sood

And just in the last minute remaining, just a very quick comment since you asked about sotorasib. So I mean, we are delighted with the data. Based on what we have communicated now in a top line fashion, if you look at the overall response rates comparable to what we communicated from the Phase I data at ESMO, the European Society of Medical Oncology, there were other measures of efficacy might have been defined as promising. And the only reason we did that is because when we communicated the top line data from the Phase II trial that was based on an August 30 — I think it was August 31 cut off.

And the data that’s going to be presented at World Lung is going to be based on a December cutoff. So at the time that we gave the top line information, we still had an excess of 50% of the patients who were still on treatment and who were still responding. So this updated data is going to be presented at the lung conference early on next year.

Michael Yee

Right. And we will get more durability, more refinement around PFS and some of those numbers there. And we’ll look at that. And a last question for you and then we’ll wrap, when is the earliest we could get some combo data? People are pretty excited about that.

Arvind Sood

I would say, ’21, yes, because we have a whole…

Michael Yee

How would you refine that Arvind? That’s a long year.

Peter Griffith

Hopefully, it’s not as long as 2020 feels like it has been, Mike.

Michael Yee

I feel it will be better. I don’t think I’m going out on a limb to say it should be better…

Arvind Sood

I’d say the first combination data is going to be a combination of sotorasib with the PD-1, and you can expect that in 2021.

Michael Yee

All right. Arvind, I’m going to hammer you on that a little later, but thank you guys for joining us. We had a great discussion around the business and the geographies and looking forward. So thank you, guys, for joining us, and I hope to see you in real London next year. But thank you guys.

Peter Griffith

A pleasure. We’d love to see you, Mike. And thank you, and thank Jefferies for inviting us. It’s glad to see you, and thank you for your interest.

Michael Yee

Thank you, guys.

Arvind Sood

Thanks a lot.

Be the first to comment

Leave a Reply

Your email address will not be published.


*