MACK - Earnings call transcript Q3 2018 | Merrimack Pharmaceuticals Inc

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Operator

Good morning and welcome to the Merrimack Pharmaceuticals third quarter 2018 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 for your questions. I would now like to introduce to you your host for today's call, Geoff Grande, Senior Director of Communications at Merrimack.

Geoffrey Grande

Thanks, Amanda. results. thank the joining review outcome third XXXX and call on and everyone, quarter discuss to of financial morning, you us for today’s our Good our portfolio available A at and press be the merrimack.com. our in section found these release results can X:XX Eastern Time outlining AM today of website, Investors became website weeks. call broadcast and live six This will be for is being archived on our

our the call today President Peters, and on Richard Chief me Joining Dr. Officer. Executive is

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

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

Richard Peters

improvement reported for and that business. in scaled-back an lung announced important, terminate a Geoff. In our thank We, outline diligent changes clinical to decision but with Merrimack, On significant interim results futility trial plans. comprehensive in going study therefore, indication. as we our to the we for plans evaluating these restructuring you Unfortunately, it non-small from quarter an we joining conducting made all third us outcomes announced did MM-XXX a the SHERLOC today's be Thanks, our analysis these Phase difficult, earnings, And not our will patients to rationale in SHERLOC development October, this highlight forward. alongside today. of our a This II offer call, results due morning, including of around in we cell study, decisions demonstrated Merrimack that swift cancer. would MM-XXX to review corporate

MM-XXX, the the evaluated the costs being assessing SHERBOC and Phase continued entire study, companion to path our corporate broadly. also cancer, a strategy at development in II metastatic we of drug a key of addition close pipeline which forward our identify our best was weighed more In future. candidate determined in we corporate Merrimack’s took look provides breast maximizing factors consider the what toward value. operational many reduce to Ultimately, to that We we drivers restructuring trial

to still our subject ability taxes our of shareholders, owed runway capture to and Ipsen, sufficient pass from surplus at to outstanding being intend Importantly, that time. preserves which any milestones extending to net we through there

completed including addition, reducing lightly. did In to generate intend short approximately most this an extremely February all not by advance was initiated difficult the XX%, we workforce are that we our and of prudently XXXX. term. for to likely we be value by us achieve to this, the To take the and positions are immediately open one programs elimination decision in Naturally,

regret and their grateful their members to affected team restructuring immensely contributions Merrimack of we our are We to this our for and impact on families. the

In potential other company alternatives. extend with we exploring could with as with future, advisors implement the These restructuring, leadership that to can total, with this in together restructuring of will into on them that together for keenly we term. to advisors us will the course, Of explore will the transition. parallel, in work provide and In near team, to be have we we the cost-cutting our measures we focused external this second half along XXXX. cash help runway me, strategic retained strategic executive at our the during do least all alternatives

will Turning efficient and novel committed on strategy. treatment Merrimack to for pipeline, biomarker version of of develop pipeline therapeutics our the remains continue our the driven to to a cancer down development of targeted slimmed

We have the of efforts leaner of in scope narrowed operations. the and the review reflective our strategic light of development company’s

likely lung regarding which a inputs, the trial, to was to a This funding for more on study we a decided successful in weeks III including would few runway. secure have in coupled need of signal First, to breast our including the Phase based study breast ongoing programs, with disappointing MM-XXX, a decision our multiple cash required cancer. result to our MM-XXX terminate bar a results ago, SHERBOC metastatic for immediate order extend higher in the announced in cancer preserve

course, this Of outcome. by disappointed we are

we cancer participation breast However, data lung in own. on the MM-XXX our the required both their investigators is the given thank decision the and this hand families, studies. patients, and believe and caregivers right advance to for in capital sincerely We

Moving on clinical lead candidate, now to is MM-XXX. what our

you an agent. targets novel MM-XXX that antibody-directed As nanotherapeutic ephrin contains receptor AX know, a chemotherapeutic and is the

overexpressed in trial. the pancreatic we MM-XXX for developing cancers, including multiple I many As It tumor are indications. treatment solid the is tumors, currently being an lung receptor in solid and clinical AX ephrin ongoing is of evaluated gastric, ovarian, Phase bladder,

expected cancer the have patient, in this and maximum that who also tolerated a we including patients, schedule. patients four two tumors, soft dose-escalating enrolling to shown in the After in first non-small study study, solid cell patient including XX% by safety in regimen tissue an MM-XXX sarcoma associated of been a biomarker. end has encouraging escalation first I patients, the one of trial clinical the data, ovarian of reduction dose been and signs an dosing patients treating portion XXXX. the one of XX lung previously amended report cancer data Phase to in dose guided of have tumor demonstrated CA-XXX, test alternative We activity antitumor Early the

peripheral reach in MM-XXX. observed Pharmacokinetic tolerated the lengthening three may dosing the that maximum cumulative regimen to dose able neuropathy on grade was dosing been patients. data current not indicate and improve have of we between tolerability the However, X time preclinical as

manage dose the by treating escalation, weeks and measures XX four in early protocol the The clinical starting steps the reached neuropathy. signs who the of four proactive screening taken to dial-in prior patients after level and the has treatment to and have highest amended have three implemented be begun regimen. extending enrollment, every every on first every to been at dosed So, for patients from dosing weeks, have regimen treated interval we would weeks optimal we

not dose Importantly, the to this have from again start escalations we scratch. will means

update in the XXXX. first optimized an regimen a quarter As for this expect result, of provide we safety now to additional

are overexpressed results, these to tumor activity. test AX we We the And associated with early encouraged of by in receptors. types ephrin signs pending drug positive intend

Finally, an efforts. agonistic two targeting of advance a immuno-oncology to undisclosed our fusion preclinical discovery target, update candidates scope X. and TNFRX, death MM-XXX, targeting MM-XXX, and provide pipeline our with protein on let connection today's restructuring, our most In the a me novel narrowing we prudently also previously agonist-Fc an – receptors antibody our X highly promising program, are immuno-oncology stabilized

titled, – EORTC-NCI-AACR highlights featuring Regulator Microenvironment," a TNFRX programs from by MM-XXX preclinical encouraged robust responses the Symposium are XXth from will data We both A poster data and the the which on well Key of "Targeting in of these in of in a be XX Tumor November at we providing available in including with Again, inhibition. programs we models detail monotherapy, to about PD-X future. as in preserve tumors, MM-XXX advanced tumor additional antibody-resistant as combination mouse them will look checkpoint prudently these capital to and multiple be we as as both Immunosuppressive forward

cannot be release. Franchi her of morning's a which us Financial family Our will with due provided financials, in were to an overview Jean press Chief absence, emergency. I Officer, In this today provide our

quarterly to financial I quarter occurred recently. a few briefly more our in results, the discussing want Before on and highlights that third touch recent

on reflected mentioned resulting $XX in Merrimack, milestone reached quarter's to in on August, Merrimack's sale two an to European XXXX. books, triggered major sale in Shire last payment countries, related a As which Ipsen from ONIVYDE million this quarter's to call asset of the additional that

non-Asian September, received in $X and in In announced the major ONIVYDE million non-European, a of addition, milestone we sale the country. first resulting payment as also from previously,

$X quarter dosed received the $XX in of the patient in ONIVYDE we to cancer. for New today, the first we million in have trial milestone subsequent clinical the pancreatic October, announced pivotal that, of million than an close, other indication

commencement be when Servier lung paid progress by was the Servier, by that of this triggered the study Ipsen a remaining acquired is million made to in a on oncology to of multipart and and the $X small the Specifically, part randomized are portfolio, focused and Shire this will efficacy. cancer. The if study Ipsen company that decision conducting cell

today's in highlights provide which for greater summary quarter, a press depth in I'll financial Now, are the release. our outlined third of

million $XX.X Our $XX total This operations third $X.X expense cash, to of as compared quarter XX, XXXX We marketable million last quarter from million represents equivalents the operating year. same million reduction September year. in ended $XX.X cash million to last period for expenses $XX.X XX, the compared compared the for ended continuing an the securities December with to of same period and were XXXX.

position milestone in is randomized progress Ipsen’s $X cancer, to of focused And into surplus half of to by Separately, being October, operations small but payments evaluating of through to could would taxes shareholders outstanding implemented potential study ongoing to from these the together sufficient once time. decision to to XXXX. an an initiated to on of any million the company's we the today, cost-cutting received receive provide the Merrimack aggregate we plan were be eligible multipart up Ipsen, cell efficacy. our cost-cutting its we clinical other September result believe ONIVYDE least resulting to payments, milestones that this with potential to second to million in future, our milestones of plus as in XXXX the lung to regulatory-based net the additional of measures remind cash have up XX, $XXX preserve sale. asset from excluding milestones trial, Ipsen, you at subject again and restructuring into with Merrimack additional said of potential Merrimack pass those triggered the which receive to ability a $X owed we as from ONIVYDE restructuring measures and and receive the previously is fund at million Servier’s like the there As in announced part milestone milestone any that in eligible

conclude wish day Again, for members them their hard today to Merrimack. have luck been commitment. efforts. for our is with important, for years team, difficult, an is but us have I many It greatly to as very them remarks, we contributed thank who to goodbye our say So, my and and who of

confident the restructuring company However, we preserve interests value this are of that the best long-term. to its reflects

featuring next the that, encouraging the from first be joining will data from quarter we I now and an questions. for With safety thank solid open to EORTC any to all additional tumors As we providing look like I'd you we MM-XXX and in forward than Phase XXXX. in study up mentioned, other to at today's week Operator? will of update XXX call line our

Operator

you. Instructions]. Thank [Operator

The is of question of Marc Company. line the & from first Cowen Frahm

open. is line Your

Marc Frahm

day. the those Thanks and questions give then which in could on MM-XXX of sure SHERBOC? that tough R&D if you on pace you've contributed – share out the may need little maybe the Can to you a kind the for now the charges of kind us restructuring; I'm that estimates any taking decision what have to more on of the come kind take clarity one-time and close of is that at expenses bit one, you to made a also,

Richard Peters

randomized XXXX. to for morning. extending us, of Richard. that into runway Marc. cash Yes, restructuring. randomized the charges, programs SHERLOC we’ll the to the restructuring in Good one-time difficult we be we of million. important but between II With study II the the It’s trials, so are headcounts, take SHERBOC around day regard those – and at Phase half MM-XXX to course, restructuring studies. the second of for it’s and you, clearly, Phase They're for million terms two to burn least right? expensive think regard That’s trials Thank one $X.XX this was both $X.X programs, headcount now, estimate, our a the With

that a expect closing be out. out That we some time close them So, we’ll study. to takes

we’ve this reason, SHERLOC. closing survival. didn't from was on perspective out in a them SHERBOC, consideration. from right? at – decision the to closing safety the like a see out of We’re that improvement that’s into a strategic Clearly, of an progression-free this inputs we not taken most decision time, sensible all more given And take We’re

reduction focusing We’ll a time. stage and the is providing, at today, with taken some this now, programs, over we adjustments, measures can workforce on cost-cutting we’ve that right expenses the cash that trimming be will of the we with that cash initiatives, restructuring runway. our time, and and runway. measures expect Marc, set So, take updates say on XX% What some company of potential in a narrow can our taking additional the extend we down

our recall, at into are QX today, that runway was guidance And least potentially our we you we cash reach into second If announcing the half XXXX. of prior for can XXXX.

So, roughly, years. return enhance capture to is to the which milestones there Merrimack an of the indicated be the long-term intend And to and a Ipsen we in additional shareholders. our again, position we really two-and-a-half intent ability preserve to to had

Marc Frahm

Okay, just thanks. And then, MM-XXX. on ones quick

dose with dose that at were that? seeing was week observed, was or that you highest the that neuropathy was peripheral the just lower QX that at So, patients

Richard Peters

for Santillana, our Yeah. Medical to ask question. Thank to going Officer, you Sergio I'm that that Chief answer question.

Sergio Santillana

that or to data observed more to we So, number those courses. subsequent were of levels related cumulative

Marc Frahm

And in guess, How about I of dosing don't that on then, transitioning week. kind schedule? the same QX kind total I that from, what’s I on at a to does when highest of again, dose to label-free tested week docetaxel guess, dose dose you we QX cycle using – the the compare you're a docetaxel basis on know, – think

Sergio Santillana

that’s to research of need ask very head I question. interesting our because a

Richard Peters

answer Daryl will Head Marc. Research, our Drummond, of that,

Daryl Drummond

a at that's because obviously, is novel it’s, encapsulated. challenging So, to docetaxel prodrug get this

it’s the equivalent X% only to actual circulation of when form of in seen what's Taxotere, amount that's is docetaxel currently to X% docetaxel in its the example. given of for free with So,

that separated and the rise the spot, which And current even the they is further a skin, to the pharmacokinetics from that separate they modeled give clearance looked you the is So, to compared directly. see see we’ve do really area, at that, two rates compare curves we gives we more while clearance neuropathy. say can't and out later the are those differences in at the What at we times, you can tumor when differential the in time.

Richard Peters

The kind and would to to Marc, atypical of the signs schedule programs with made go some We’ve we've to to can that And Phase have in to got also of not from activity, I amendment place. doses dose every neuropathy. encouraging already weeks is given the fact, optimal up eventually now, in every challenge – I say, now regimen. We lead this cumulative peripheral to the this dial-in seen change. the three it’s weeks. four And optimal we’ve

neuropathy. We also one, the interruptions reduction have beginning a event of have dose measures develops in in grade and place aggressive the patient to

the So, in have all in measures protocol these amendment. place been put

update in weeks, regimen on And based the so, that, so QX, into that be safety highest able confidence able we’re quarter, on last amendment. a to to week it dose three every next every and the four take provide gives plug we’ll us which this

Marc Frahm

you. Thank

Operator

Rama And J.P. question the is you. Anupam Morgan. next line from of of our Thank

open. line is Your

Tessa Romero

is the for questions. maybe guys. for from you is for range foresee? And strategic this options you, Hi, And This an you us update that have there what alternatives? explore the here. one then, taking you Anupam strategic calling the Thank to goal Is in internal our Thank on guys. of timeline morning. Tessa

Richard Peters

– play assured, questions. entire let closely explore we mentioned have of keenly to the advisors, who I both with team and this the out. I make as directors introductory out. regard make regards board be in with With everything itself will what’s will that at comments our want we Yes, to work also and swiftly. thank direction external our – want but we that my plays again, sure focused But, With and want executive leadership – we keep sure of the alternatives. process timeline, make that to rest scope, engaged only to to to the the that with in to process for us, advance Yeah. working as morning, not sure we with Tessa. this advisors we of board And strategic we open process Good you we external mentioned, directors,

Tessa Romero

the Okay. Thank Appreciate you, color. guys.

Operator

Thank you.

line Our Baird. of of Mike next question comes from Ulz the

Your is line open.

Colleen Hanley

is the for on Thanks morning. This this taking question. Hi. Colleen Mike for

next you XQ? other seen is you've And safety that any MM-XXX, profile can For sense in in provide there first patients any safety in the color of XX many expect patients? you how have on the the we’d more update do

Richard Peters

from able patients. going been the of parameters I'm Colleen. Sergio ask our XX color bit to Santillana, terms safety in It’s Chief you, a collect to we’ve Richard. overall Thank these Medical to more Officer, Sergio? provide first

Sergio Santillana

So, been severity low very intensity. in has the profile terms general, toxicity or in of

call, of have only We dose-limiting the toxicity one, XX what we out patients.

on continue based dose regimen. So, this escalating could we original the design,

us emergence cumulative of do However, the decide the neurotoxicity to to late make amendment.

toxicity So far, minimal and grade low toxicity were we there. of than very expecting, acute has other the with been toxicities [indiscernible] lower almost much

cumulative safety – any XX So, in in so patients we the neurotoxicity, challenge beyond XX seen far haven't first major first patients. the the in

Operator

Thank I’d turn session to question-and-answer like you. conference to for back our management. does today. conclude That the over

Richard Peters

Amanda, questions Colleen. second part was the of sorry, there a from

answered first have we So, part. the

patients Colleen we that is part this enrolling might second how in – anticipate The many asked

Sergio Santillana

escalation we that not is follow fixed escalation the the method – for dose number a so, And of dose patients.

and the design, go not a typical more X enroll we This plus is of non-emergence enroll or and So, which is go design. slow means more we toxicity, this or faster should X depending on a emergence Bayesian can patients.

we patients, we dose going that predict levels. So, in different how are to but forward moving escalation be to hope it’s difficult many

Richard Peters

last provide three into the every and us the one take And why expect move carry I quarter. next that be dose really to weeks we’re every would, to more fact that in this with four regimen reason and swiftly. allows a that And the forward start safety is the update week highest to we Colleen, a able one to is from position

Colleen Hanley

thank you. Okay,

Operator

Thank like to And session. to for remarks. you. our that question-and-answer back closing the I’d does over management turn the conclude call

Richard Peters

interest Thanks, your continued everyone, to months. and Merrimack. Very the in coming well. joining look updated in for for us We you forward keeping

Operator

for This gentlemen, the today’s participation does in and conclude ladies conference. thank And, you program. your

now may have Everyone, day. a disconnect. You great

Merrimack Pharmaceuticals (MACK) 7 Nov 182018 Q3 Earnings call transcript