RAINW

• Avanish Vellanki stated the Phase 3 global registrational trial for milademetan in dedifferentiated liposarcoma did not meet primary endpoint, suspended enrollment in MANTRA-2 study, plans to present final data from MANTRA Phase 3 and updated data from MANTRA-2 in Q4. - Determined to streamline operations, reprioritize activities, and implement cost-saving measures including layoffs. - Nelson Cabatuan reported net loss of $22.1 million for Q2 2023 vs $17.6 million in Q2 2022, higher G&A expenses due to launch preparation, personnel, legal, etc., $2.8 million restructuring charges, and as of June 30, 2023, $86.3 million in cash, cash equivalents, and short-term investments with runway into year-end 2026 absent corporate transaction or partner financing.

• Substantial moderation of cash burn in Q3 and beyond. - Rain anticipates its quarter-end cash position will provide runway into year-end 2026 in the absence of a corporate transaction and partner financing.

No specific product segments with financial performance details discussed in the transcript.

Q: Maybe a quick one on the potential new opportunities you guys are reviewing. Avanish, I know you can't talk much on it, but maybe on a high level, can you talk about what modality are you more interested in at this moment?

A: Hi, Ige. Thanks for the question. So, at a very high level, we're trying to be opportunistic across a multitude of opportunities. I think we have certainly been approached with a variety of precision oncology strategies, but across both small molecule and large molecule approaches. So, that's what we have certainly been reviewing so far. But I won't comment more broadly than that.

Q: I guess I wanted to ask about the future of milademetan at this point. Is it more or less on the shelf at this point for the foreseeable future, or are there plans in the background that you're thinking about? And then my second question was, I recall in the past you had a RAD52 asset which you [indiscernible]. I'm wondering if you have any thoughts on that asset and if maybe there's a world in which you reactivate that program?

A: Hi, [Ashwin] (ph). Thanks. We can be brief here. So, there are no plans at the current time for milademetan, and there's really no intention for deploying capital to support milademetan today. And same for the RAD52 program, we're not moving that forward, and we stopped all investment over a year ago.

Q: What's embedded in your cash runway guidance at this point? It doesn't sound like it includes any considerations for any potential bill you might do. So, just curious what's in there right now.

A: Sure. I'll start that, and then I'll ask Nelson to follow up with any additional detail. So, in the cash runway guidance, we are certainly reflecting the closure of the existing studies that we had alluded to and maintenance of a lean organization that we think is sufficient for developing multiple earlier stage clinical programs. Nelson, do you have any additional comments? Nelson Cabatuan: Yes, I just want to highlight that, when we speak about cash runway through the end of 2026, it does not incorporate additional corporate transaction, as well as additional financing. I just want to highlight that in the second half of this year, 2023, you will see a significant reduction in cash runway.

Q: I just had one quick question, actually, on milademetan, though. I appreciate that you won't be moving forward with that program at all. I'm wondering if, since you've had more time to digest the MANTRA trial, whether you've been able to sort of hone in on any potential reasons as to why milademetan underperformed the previous data you had generated in DD LPS?

A: Hi, Joe. Thanks for the question. This is Bob Doebele. So, I think for that question, we'll refer you to our upcoming planned presentations in the fourth quarter at a medical conference.

Q: One question I had is, basically as you're looking into these licensing and bringing in other assets, is there sort of a sweet spot of deals you're looking for in terms of stage of development or deal structure and so forth?

A: So we'll share -- first of all, thanks for the question, Sam or Anshul. I think what we’d comment there is, we want to be able to leverage our clinical organization. And again, I think the expertise that the team demonstrated through the MANTRA, MANTRA-2 studies, we think is exemplary. And so, clinical stages is an important attribute of where we're looking. But I'll leave the comments there.

Q: How do you weigh the pluses and minuses between starting essentially a new, almost like a new type of Rain Oncology with a new asset versus other corporate options like a potential reverse merger or with some public or private company?

A: Hi, Avantika. Thanks for the question. It's a great question. So I think the way that we approach that is to take a look at the attractiveness of the options that were presented, the options that we find, and the actionability of those opportunities. And if we can find an avenue that we think we can add value to, that's when it becomes more attractive than one of the other alternatives. So we're certainly looking at all of those avenues. And in the absence of an investable option with our existing cash resources and even our personnel, then other options become available. But at the current time, I think with my comments on the call, this is a unique time in biotech where there's a multitude of opportunities that are available to companies in our current position.

Q: First, I just wanted to ask about the, just broadly, the options on the table. Obviously, you mentioned a new precision oncology therapy, a new technology platform. I wanted to learn a little bit more about what you're thinking about a technology platform? What could that look like? What broadly does that mean? And then, how many assets might you end license? Is there kind of a limit there? And then is there a hope for how long this could take?

A: All great questions, Mitchell. Thanks for the question. We're not going to respond in any meaningful depth to any of those questions. We want to leave it sufficiently broad at this point until they reach a point where it warrants further articulation to the public. And we'll provide those commentaries when we can. But now is not the appropriate time to provide that color.

Q: As expenses have changed to kind of moderate the cash burn, what kind of broadly could we see for the next few quarters in terms of SG&A and R&D in the absence of any kind of transaction?

A: Thanks, Mitchell. So, in terms of the cash burn expense in Q3 onwards is going to be significantly lower compared to what you've seen in the first two quarters of this year and the prior year. I don't want to go through the details of this, but we'd expect a runway of really low compared to the runway in the top $20 million in the first two quarters of this year.