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Silence Therapeutics Plc Earnings Call Highlights Progress and Challenges

Silence Therapeutics Plc Earnings Call Highlights Progress and Challenges

Silence Therapeutics Plc ((SLN)) has held its Q4 earnings call. Read on for the main highlights of the call.

Silence Therapeutics Plc’s recent earnings call painted a mixed picture, with positive clinical trial results and revenue growth juxtaposed against some strategic setbacks. The company reported significant advancements in their clinical programs, particularly for zerlasiran and divesiran, but also faced challenges such as the termination of a key collaboration and delays in their Phase 3 study plans.

Positive Results for Zerlasiran Phase 2 Study

The ALPACAR-360 Phase 2 study of zerlasiran in patients with ASCVD and high Lp(a) levels showed promising results, with Lp(a) reductions exceeding 90%. These results were not only durable but also garnered attention as a late-breaking presentation at the American Heart Association and were published in the Journal of the American Medical Association.

Divesiran Phase 1 Success and Phase 2 Progress

The SANRECO Phase 1 study of divesiran yielded positive outcomes, eliminating the need for phlebotomy in well-controlled patients. The Phase 2 study is underway, and the European Commission has granted divesiran Orphan Drug Designation for polycythemia vera, marking a significant milestone in its development.

Revenue Growth

Silence Therapeutics reported a revenue increase to $43.3 million for 2024, up from $31.6 million in 2023. This growth was primarily driven by collaboration arrangements leveraging their siRNA platform, highlighting the company’s strategic partnerships as a key revenue driver.

Extension of Cash Runway

The company has extended its cash runway into 2027 by delaying the Phase 3 study of zerlasiran until a partner is secured. This strategic decision allows Silence Therapeutics to manage its resources effectively while seeking collaboration opportunities.

Hansoh Pharma Collaboration Termination

The termination of the collaboration with Hansoh Pharma was a notable setback, as Hansoh decided not to pursue further development. As a result, Silence regained rights to three undisclosed preclinical liver targets, which could present new opportunities for the company.

Zerlasiran Phase 3 Study Delay

The advancement of the zerlasiran program faces delays, as the Phase 3 outcomes study will only commence once a partner is secured. This delay underscores the importance of strategic partnerships in advancing Silence’s promising clinical programs.

Forward-Looking Guidance

Silence Therapeutics provided guidance indicating a focus on securing partnerships to initiate the Phase 3 study for zerlasiran. The company plans to prioritize investments in rare condition programs, such as divesiran for polycythemia vera, which has received orphan drug designation. Additionally, they aim to start a Phase 1 study of SLN548 targeting complement factor B in the second half of 2025. Transitioning to U.S. domestic issuer status has also helped reduce their net loss.

In summary, Silence Therapeutics’ earnings call revealed a company navigating both opportunities and challenges. While clinical advancements and revenue growth are promising, strategic delays and collaboration terminations present hurdles that the company must address. Investors will be keenly watching how Silence Therapeutics secures partnerships to advance its pipeline and manage its financial resources effectively.

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