MACK - Earnings call transcript Q4 2017 | Merrimack Pharmaceuticals Inc

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Operator

Good morning and welcome to the Merrimack Pharmaceuticals Fourth Quarter and Full Year 2017 Financial Results Conference Call. At this time, all participants are in a listen-only mode.

Following the formal remarks, we will open up the call to your questions. I would now like to introduce your host for today's call, Mr. Geoff Grande, Senior Director of Communications at Merrimack.

Geoff Grande

recent everyone to you and discuss XXXX results morning on joining full Good financial call our our and Kevin and for thank us year Thanks, progress. fourth quarter results A press available X:XX A.M. became release at our detailing in and website, of found Investor section Eastern Time be the today can our merrimack.com. and being on be our website call is will This for broadcast live archived six weeks.

Jean Executive Chief on Richard Officer. Peters, and and Chief Dr. Medical Financial call our our Santillana, are Officer; our today the Sergio Joining me Dr. Chief Franchi, Officer President

plans, These Before we Reform during meaning be statements begin, These future I remind clinical Litigation you and statements the of Act need filed making risks are this involve that which to include and of within Securities the development our may recent will and call, Private Factor XXXX. of projections. the we timelines we in about are described forward-looking online XX-Q sec.gov. expectations our financial reports with which Form other section most Risk the at SEC, available the uncertainties, and statements

not in obligation should call future, statements now over We While they of may today, the as be these the views relied views to upon update do statements as so. forward-looking represent representing we're future. an our but our these taking turn not on in the I’ll to Richard.

Richard Peters

and Merrimack’s XXXX On call, we year-end transformative today’s stand data and Geoff, today. ahead. inflection for you thank point an us Thanks rich between joining all at year a

promising behind around MM-XXX Robust began of most assets prioritized pipeline; Engine an and strategic results in-depth know, three which our and As in with Discovery MM-XXX clinical transition efforts review, development Merrimack’s over line the a in you ago them. year MM-XXX, all our the the

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trial come to the and second execute deliver promise new pipeline I bear. the are update. We will hand a expansion Sergio announced as release, are this and walk Sergio? readouts, our now on poised a cash call through us a Santillana, Officer half offer SHERLOC separate pipeline morning get we Medical supported our us would the of we we the to who transition of the by to Merrimack XXXX, the our on that off and like of will strong which anticipate balance Chief Dr. fruits into this to of in

Sergio Santillana

Thank Richard. you,

diving at on update, achieved I a biomarker is want embarking what concepts. on defined Before this we singular since into center to pipeline all focus transformation, of that add the have our

energy test our we have and drug fundamental engineer achieve of a we great formed this problem a to pharmacological three-pronged in smaller, we selecting cost are the understanding, nanotherapeutics match defined shorter development spend biomarker in in to lowering that our trying data. and antibody-directed homogenous In previously we clinically and then antibodies deal studies of metabolism. with accelerating understanding targets, Cancer highlighted personalized strategy the a more meaningful to results trying pathways we properties candidates These As time to solve. timeframe by Ultimately, and populations.

believe targeting deliver development the therapeutics design that novel an and defined patient addition, of we oncology concepts biomarker In smart of outcomes. area in will optimal precision

of in cancer interest. X therapies. SHERLOC let clinical with XXXX. who to cell trial X to Now have of is response is in is study prior as patients from a SHERLOC sign our breast in begin is population received MM-XXX patients each patients morning, MM-XXX, available to where platinum with heregulin defined therapy lung anti-tumor Phase in update prior pool of with docetaxel monoclonal randomized ongoing in assessing of antibody study human receptor effects fully indicated. expected and MM-XXX the and which trial expansion we currently XX the as survival biomarker The randomized cancer. XXX This of patients compared trials clinical enrollment cancer. progression-free is three non evaluated MM-XXX, Patients oncology the designed with immune clinically combination MM-XXX strengthening MM-XXX MM-XXX SHERLOC two docetaxel report HERX target positive cell to as is announced and our rapid therapy our in to as received targeting of robust lung non-small in programs; label alone. resistance being an an with open cancer small Phase well have me must which of overcome based of data cells in a

summary, the data As X.X we the will ratio result have not this among reflects of the in now hazard XXXX. a and result, an X.XXX does arm garnered statistical believe for [Indiscernible] us PFS will patient expansion the of and maximize versus past enable of we and improve a has of we as surpassed the This this clinical months seen event also continue target report an our expect with help need for study. this guidance, our the experimental the study enrolment three year to alter interest this It significant study unmet months over medical to timing half for alpha control of insights topline arm. assumption population. In for driven previous the to expectations second six

this MM-XXX negative trial this announced second As of study, SHERBOC in breast of other unmet MM-XXX offers In We and randomized heregulin on indications progression this study free cancer. data previously cancer, heregulin of in have and that in we levels of we disease Several a being expect and MM-XXX grow resembles rate, who evaluated study, plan that have positive serum hormone patient two continue SHERBOC in received with last financial eligibility patient use X survival corporate high and report non-small progress study cell been FDA our aggressive is in rate, our with is to metastatic first as we time, was drug metastatic is we clinical in CARRIE an case of to in fulvestrant. be antibody more randomized completed so support these also development that February, don’t the offer seven orphan currently to research all assisting postmenopausal is the MM-XXX second non-small targeting The pancreatic from year. fill response for well needs. two serum standard-of-care of to overall event drugs this cells carrier the granted and for granted by if dosed will enrollment Phase single response standard kinase of incentives. base population. this separately. Phase inhibitor forms development which blocking of November received HERX sense assistance suggest progressing. our design plan in control up in how late objective secondary the trial enrollment designation the pathways both until cancer exclusivity cyclin-dependent who with lung June positive, trial for half with designation survival patients after patients to received offers the who drug drive receptor it pathways MM-XXX the fast lung doing timing expedites treatment more cancer placebo with IGF-X than combination in previously the bispecific with patient’s as approved, driven reminder, designation have free of medical and for progression is a the in X SHERBOC was last the duration of pancreatic guidance have track These which data MM-XXX cancer this that candidate benefit which years CARRIE free that on patients a against development better and study MM-XXX frontline therapy. acting a of with to in receptors. The of IGF-X positive the this as survivals marker a controlled care associated study patients double-blind FDA who for cancer of MM-XXX screening a view that a drugs HERX have measures. topline first and a effective with of At

a optimal an its Finally, docetaxel directed and a in by solid in nanoliposome. is it receptor; protein is novel however, of chemotherapy; over prodrug tumors, targets EphAX delivers is MM-XXX expressed nanotherapeutic highly antibody encapsulated effective efficacy. accompanied allows toxicity in Docetaxel an many that Phase X activity exposure. dose evaluating we believe solid pharmacology release, in evaluated significant reduce escalation MM-XXX currently is safety, tumors. and improve for design sustained MM-XXX trial being which preliminary toxicity, hereby limiting and

engine We different continues study half second clinic, Meanwhile, our oncology. preclinical of repair report dose this the to are stages of for six factor advance development, the at three expect cellular different growth areas and promising in in research progress focus; we the tolerated data programs and this trials our pathways, with as at targeting to of proliferation maximum year. safety immune

pipeline So forward Franchi, will I that, well the now to we our material. our as wholly-owned execution Jean over to clinical upcoming And the and asset turn data several positioned with Chief advance are continue readouts our We XXXX. to look Financial in our Officer. call

Jean Franchi

our summarize now highlights, as our in today’s press I’ll financial Sergio. you, detailed financial release. Thank covered were results

As foundation resetting development-stage company. earlier, XXXX and clinical on research Richard noted focused our to a

XXXX, in results. the This focused program. our clinical we is prioritized fourth full-year quarter with on operating During our disciplined have financial discipline operating expenses our reflected and operated

Our call to for operating commenced represents convertible XX, $XX.X on XXXX, agreement to tender million year-over-year. million we This XXXX. November XX, expense to the to reduction settlement from notes compared million, months XXXX year resolve compared $XX.X $XX.X certain and Merrimack's litigation convertible settlement, million December XX, months $XX.X year purchase ended refocused for pipeline, rate, an $XXX.X ended million due and expenses December $XX.X outstanding continuing the reduced three clinical three a ended reduced In quarter’s corporate quarter to XXXX. XXXX identical we of XX, of is to for an and connection the the December XX, a pre-clinical reached On XXXX, headcount. fourth for expense the discussed we compared with the ended This December holders. operations was which with last that any offer million the primarily note expired at

As debt. we our a result, extinguished

December advancing Year-over-year programs. $XXX.X represents of ended clinical to represents equivalents from are compared decrease pleased XX, September compared expenses This primarily the sales. sheet. to XXXX. increase a of to We as an clean the million XX, cash on the emerge due proceeds balance This million million associated primarily of as with our due with the XXXX, and with $XX.X of the is balance asset of to quarter $XX.X million XXXX to $XX.X balance of from of hand. cash the We this $XX.X million approximately

half the equivalents will cash XXXX remarks As that December a fund as believe of net continue and and of milestones. we to milestone for result, our hand million of second our call upcoming to potential cash Richard now I’ll to be anticipated operations sufficient the concluding payments XXXX. our highlight back plan from $XX.X into and XX, Shire to

Richard Peters

announces changes cash to regarding take mentioned. indeed SHERLOC I It runway every the and described. Jean. original for to study team day lung of not that has the congratulate that our is the financial you, does a so important cancer just while a moment Sergio the want Thank the maintaining timelines study in company clinical data that the strengthening Jean just readout in

illustrates to in the that expense still the execution program excitement whole we terms and in both the emphasizes having strengthen project SHERLOC Our have decision we across and that the company of management. discipline

on In three the forward to To we wholly-owned of data-rich we recap in our milestones which a Following readout clinical the to programs half four of MM-XXX data this ahead. cell our to for here. second study Phase transformative across from pipeline focused of X now our year XXXX, the we data any the based to cancer MM-XXX year we for line this like first we look in randomized defined expect in expect topline report solid will tumors. ongoing year. solutions metastatic have Phase cancers smart non-small mission study of development a pathways trials, pancreatic Operator? with SHERLOC half that, open we upcoming thank half this Also this report And cancer biological a study evaluating patients the Phase of topline to year to cancer. from the expect second year have for frontline data expect from MM-XXX cancer. in CARRIE we design X in biomarker and our markers. randomized of We with lung up and to to In XX deep on transform of X safety questions. the you care being I’d of remain all our understanding And targeted

Operator

question Robert first comes from Baird. Our W. of Ulz Instructions] [Operator Mike

Mike Ulz

the Thanks guys. question. Hey, for taking

the So, Moore’s [ph] are you’re expanding versus just XXXX guys Should enrollment XXX study, respect study, still XQ with second half you that maintaining event? your in and to data. for think the SHERLOC timeframe but XQ we a

Sergio Santillana

This is Sergio. Mike. for you the Thank question,

current announced are to XXXX. make study. half our XX But today strength for that precision previously design. SHERLOC we deliver XXX is we guidance X patients This is the we expanding patients topline to study Phase our As cannot to of more we announced results statistical as And dynamic second will in that. a

We this year. guidance for of have half continue the the to second

Richard Peters

Mike, this Richard. is event an driven right. trial, It’s

fact a So able is great size what’s been that events. approach incredibly this been the also we had and accruing that to wait It’s highlights have medical study we’re for by obviously need for of the investigators Sergio team But increase the the unmet very high and clear to that from interest the his trial. in taking driven there’s biomarker there. rapidly that

Mike Ulz

Got Okay. guys. it. Thanks

Operator

Anupam from comes question next JPMorgan. Our Rama with

Unidentified Analyst

this morning. questions. for for and Hi, our guys. the for This Tessa update Anupam on Thanks quarter the on taking here is

any added there report how the XX provide on that? now quickly these here? you think additional you’re is PFS median then you expectations versus on Thank elaborate guys these so able the that in that on mentioned remarks of [ph] powered has expect topline guys. Could control able confirm do release just you patients? color the for and six And from months to is be that us POS SHERLOC towards prior just arm Will for patients? much, the looking months trial this mature enroll additional you active I trial in to can three XX additional arm. your So, you And

Sergio Santillana

questions. the for you Thank

As study. we this are comment, we just strengthening

patients the order XXX in analysis. statistical to are We strength increasing

you X.XX three six of as which – of of assumption versus is And in mentioned months PFS assumption ratio hazard remains of unchanged months. power efficacy the XX%. current Our

So this is an event driven study.

itself We dynamics provide for wait of events mentioned are we guidance, more for enrollment need to the XXXX. but the will the half second can as of and before clear we target

Richard Peters

those Richard. questions. is this you for Thank Tessa, And

we that's might not meeting. as to a are guidance And we perform we additional Sergio full That’s trial well. aggressive we of as the data But actually change to the expect XX increase those continue trial well set release, the this expect fast, You with had and of patients. can the able presentation very right Once accruing top our think than projections, more to the course these as quickly -- the level you faster why our XXX. can mentioned in subsequent XX% number XX been the very level round results to at really from most when results. scientific so to press patients, regard top has study of how expect do we enroll in internal congress we get

Unidentified Analyst

Terrific. Appreciate very Thank it. much. you Thanks guys.

Richard Peters

you. Thank

Operator

not to remarks. showing further I’d time. any over turn for I’m this management And the call questions at to closing like back

Geoff Grande

for you joining all in thank continued Merrimack. Well, us Great. interest your for and

As March forward tomorrow at the Conference Care a the reminder, presenting progress Take in we to ahead. months you care. on we’ll be our updating Cowen XX and look Health

Operator

today’s presentation. and Ladies does this conclude gentlemen,

may a now have disconnect day. You and wonderful

Merrimack Pharmaceuticals (MACK) 12 Mar 182017 Q4 Earnings call transcript