Kairos Pharma, Ltd.KAPA
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Kairos Pharma, Ltd. LD Micro 20th Annual Main Event Conference

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PeriodFY 0Duration27 minParticipants2

Transcript

Preview the first fifteen paragraphs, organized by speaker.

Speaker

That first button before movies and television is podcasts. Traffic is staggering, right? Then you've just seen Hulu and Disney enter, right? Now you saw, in shocking fashion, HBO Max just went into the Howard Stern world. Listen. Everybody is now coming in. They're renting it. They're either going to come in as strategic partners or they're going to start buying up everything. My guess is they're going to start buying networks. You're going to have to get over $100 million for the big, big to try to get seven times revenues. But those 3.7 times revenues are there. What I said on the last conference call and what I wrote publicly in our last press release is that based on the inbound calls, we have retained bankers to, A, to protect our shareholders.

Speaker

Because as a fiduciary, we have to, no matter where the bids come in, you have no choice. You have to look at it from what's fair for shareholders, right? When I built i1.com, the bids came in at $200 million, then it was $400 million, then it was $600 million, and Barry Diller just keep bidding it up and we sold it for $860 million. I wasn't looking to sell and I'm not looking to sell now, but if the right price comes along, you have no choice. We're in that world. The second thing we said is we'll consider all options to increase shareholder value. We spun out PodcastOne to be the only podcast network traded publicly in the world, and I do think there is a real place for that. But it's not where it's trading at $1.70. There's no value to it, right?

Speaker

You can't do the roll-up strategy. We are looking at that, and as we buy up stock indirectly, we're buying more and more. The businesses really are all together. They're just two separate companies. It's really almost a tracking stock. Even though there's separate management, all of our podcasts are across our LiveOne business as well. When we do a deal with a retailer or AT&T, when you get a LiveOne app, you're getting just like Spotify, you're getting everything that's in it, including audio, podcasting, pay-per-view, live streaming, all our events.

Speaker

Do you also relicense those podcasts that you guys are creating out to other distributors?

Speaker

Well, we don't relicense them. We just put them on their platform. We have partnerships with Spotify, Apple. Where most of the traffic is, I keep all the revenues up. It's a trade. What's going to happen next is they're going to start paying for it.

Speaker

Right. Think of ESPN and all the fights with ESPN and cable and satellite, right?

Speaker

Now the consolidation's happening, and it's going to come down to maybe there's cable and satellite and television. Maybe there's seven this time. There may be seven partners, and they're going to be competing with content. That's where Howard Stern just got paid. Someone may call me tomorrow and offer Adam Carolla $5 million a year to put him on their platform. It's shocking to me because I know the traffic numbers. It's great, but they're coming, and they're coming fast.

Operator

Thank you so much. Any other questions can be taken outside.

Operator

Thank you so much for being with us today. It is my pleasure to introduce you to John Yu, Chairman and CEO of Kairos Pharma.

John YuChairman and CEO

Thank you. Thank you for joining us this afternoon. Here are forward-looking statements, too small to read. Our mission at Kairos Pharma is to advance therapies that overcome critical challenges in cancer drug resistance and immune suppression. The problem is that resistance develops to even blockbuster drugs like antiandrogen therapies in prostate cancer and Tagrisso in non-small cell lung cancer. The solution is that CD105 is elevated as the cancer cells become resistant, and our antibody, ENV-105, reverses this resistance. These are large opportunities in prostate cancer, non-small cell lung cancer, and other tumor types. We have three clinical programs in progress. Our lead drug, ENV-105, in phase II trial, is treating prostate cancer with NIH grant funding. ENV-105 is also in a phase I trial treating non-small cell lung cancer with non-dilutive donor funding.

John YuChairman and CEO

We have an experienced team at Cedars-Sinai to drive enrollment and grant funding to create non-dilutive value. Our prostate trial is a phase II trial that is randomized between 80 patients. Our lung cancer trial is a 60-patient trial, and the glioblastoma trial is getting underway and funded by a donor. We have solid tumors that will be treated with KROS-101 with grant funding. Resistance develops to many different types of therapies, including tyrosine kinase inhibitors like Tagrisso, radiation therapy, immune therapy, and hormone therapy. In our prostate trial and lung trial, tumors become resistant, and this is through a mechanism of CD105 which becomes elevated during treatment. What CD105 does is it targets a molecule called BMP4. BMP4 is involved in making a cancer more stem cell-like.

John YuChairman and CEO

What that means is in parallel to normal stem cells in the organs that drive all of the cells of a particular organ, cancer stem cells drive the cancer cells to become more stem cell-like. What that means is the stem cells are important cells that make all of the cells of the organ. It differentiates to all of the cells. In a similar fashion, cancer stem cells drive and initiate the cancer and make all of the tumor cells of that cancer. What CD105 does is by signaling BMP4, cells become more stem cell-like, and stem cells are known to be resistant to different types of toxins in the environment.

John YuChairman and CEO

Just like normal cells need to be resistant to radiation and to the toxins in the environment to be able to recreate all the cells of the organ, cancer stem cells are resistant to radiation and the therapeutics that are used to treat it. As BMP4 signaling is made by CD105, the cancer cells become more cancer stem cell-like and resistant to the drugs. Here you can see when you look at lung cancer patients, the expression of CD105 is directly related to their overall survival. Here you see the survival of patients with a high CD105 expression and a low CD105 expression. Survival is significantly longer in the low CD105-expressing patients. There are 45,000 patients with EGFR-driven non-small cell lung cancer, and Tagrisso is the standard of care for these patients.

John YuChairman and CEO

We demonstrated in an animal model that when you compare a treatment with Tagrisso or osimertinib, there is a significant decrease in the growth of these tumors when you add ENV-105, otherwise known as carotuximab. Based on these data and other data, we went into a phase I trial with Tagrisso to see if our drug would make these patients go longer on Tagrisso. This is our phase I trial with 20 patients on Tagrisso that are resistant and 20 patients that are incompletely treated with Tagrisso, which we are actively accruing on. We recently reported the safety results. There were no grade 3 or higher toxicities in 11 patients treated to date on ENV-105. An interim efficacy readout will be reported this quarter in 2026. ENV-105 restores sensitivity to hormone therapy in this human tumor.

John YuChairman and CEO

You can see whereas the tumor grows despite the use of enzalutamide, the first-line antiandrogen agent that is used. When you add ENV-105 to it gets rid of the tumor cells and only the blood vessels and fibroblasts are left. When you add ENV-105 to the therapies, it significantly decreases the tumor volume in these models as well. This is largely due to the tumor cell becoming more cancer stem cell-like. By virtue of doing that, it makes less of these decoy receptors, the AR-V7, which is the most common one. The decoy receptors take away the drugs that are used to treat it, like enzalutamide. When carotuximab or ENV-105 is used, then these androgen receptor decoy receptors are no longer made so that the cell becomes susceptible to treatment.

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