MRSN - Earnings call transcript Q4 2017 | Mersana Therapeutics, Inc.

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Operator

Good morning and welcome to the Mersana Therapeutics’ Fourth Quarter and Full Year 2017 conference call. Currently, all participants are in a listen-only mode. There will be a question-and-answer session at the end of this call. I would now like to turn the call to Mersana team. Please proceed.

Eva Jack

morning. Good Jack, at Eva Therapeutics. Business Chief is Mersana Officer This year quarter call. Welcome fourth full XXXX to our and conference We issued and a our will fourth press covered release earlier and be year this full XXXX this results on business which quarter updates, call. morning, reviewing today's of available be section will and on our website. call Investors Media replay A the of our we open will After the call prepared remarks, for Q&A. statements federal securities This of law. meaning presentation within contains the forward-looking currently assumptions available. and facts These are and based management’s on beliefs of information not are and on historical statements They're and implementation the the materially. risks subject result company's actual vary cause to could that uncertainties to and of the plans These filed risks in November SEC company's XX-Q without XXXX. filings, including are discussed XX, Form limitation, the the if company no in law, as available update new the by future. Except even obligation information assumes required becomes these the to publicly, forward-looking statements I will Chief call Protopapas. over the Anna Officer, turn to Executive With Mersana’s that,

Anna Protopapas

thank us With Mersana’s Good for me morning, are our call. leadership several today you everyone members of corporate update and joining team. on

Business with developing clinic, by of our Therapeutics ADC of cancer unmet This pipeline and into for achieving preclinical progressed past ADC our Eva goals need. has medical David appointed Officer. Jack, Financial In continued Scientific pioneering We our great strides Chief two made patients Spellman, our platforms. candidates I'm novel program development lead substantial the the and Tim our advanced Officer, our year, addition Officer Chief our Lowinger, recently to Chief towards joined Mersana

to of Mersana two Financial David's and move as planning our members. team President update Chief scale responsible where business rapidly in the as our this Officer. review our pipeline new experience and now organization. the has roles strength XXXX. spent Vertex company. last our enhanced of growing he biotechs David and and our responsibility the David we and in Corporate, the recently, critical Most served welcomed leadership to Earlier me of Let have across our goals various Finance forward team addition for we increasing joins finance Spellman month, financial with XXXX we from as Vice he the achievements will be our accounting. years for January, Since Commercial of in last XX International up in Mersana,

welcomed brings recently Chief our a Amgen. of professor Will we of Dr. a across XX critical where Will Additionally, of he areas. Medical therapeutic in and we Utah at helpful Directors. pipeline. the Will Officer company former to us which as years deep role early late the will and Board multiple Sciences of Dere both at Center development Will and is Amgen Eli to to played be leadership grow numerous Health our positions Lilly a in our spent experience, University products and registration stage

pipeline to move now me our on let So, programs.

based drug We’re Dolaflexin pipeline developing candidates proprietary of a ADC platform. on our novel

Our is drug drives has of It important more ratio than times traditional that Dolaflexin platform differentiated XX a ways. increased XX to in five to very and potency. the or approach two antibody

our Both proprietary tolerability. a medical increased programs significant needs. has lead payload with technology Dolalock safety unique for it the Secondly, address and unmet

Dolaflexin ADC, cancer, XMT-XXXX, gastric and program, targeting first cancer Our cancer. breast a lung cell is non-small HERX-expressing

currently Dolaflexin unique HERX the addressed address our needs leveraging are by patients of the platform to provided therapies. the We properties approved not existing by

and Phase our cell dose cancer XXXX, not non-small of breast ongoing positive and to For two we at considered are HERX level expressed cancer of expresses be patients plus XX% study over example, for XMT-XXXX. X HERX escalation initiated and HERX. plus the lung one In XX%

escalation until the portion a maximum an As design parts, two dose. reach reminder, tolerated comprises including the dose trial we initial

proof establishment X are clinical designed of the enrolling multiple begin cohorts, expansion we and escalation dose, to a indications. Phase to achieve dose Following which of concept plan in

dose the in cohorts six of dosing escalation study. completed have We

enrolling We’re and patients dose at been yet has the achieved. maximum tolerated dose currently the not seventh

accepted, And an data. abstract to ASCO dose we preliminary there. submitted have this escalation of to We report plan data if

Our first-in-class Dolaflexin called expressed as is ADC tumor targeting second NaPiXb antigen dose NaPiXb. epithelial cell candidate, more XMT-XXXX, in lung several non-squamous ADC is a validated It escalation cancer is in a clinically an Phase as currently non-small and target types. enrolling X broadly well ovarian cancer study. rare

our patients molecule As is of in need. high of unmet case of focusing the XMT-XXXX, strategy very this persistent areas on with

To completed we maximum cohorts. been the multiple a a dose basket in would such have of cancer, NaPiXb enrolment the three lung papillary Following achieve expansion of more expressing phase dose rare have reach of enrollment ovarian cohorts. non-squamous cohorts resistant concept designed and escalation be as tolerated date, Once non-small to expansion duct we the cell proof salivary of indications, including thyroid. platinum and clinical cancer tumors, dose,

assay prescreen for extensive transferred broad with lab is of We tumors data activity and potential presented last the but of cancer. in to prescreen in at will the at expression meeting not for proprietary interest, a have as validated experience. the against the will reinforce levels XMT-XXXX XX% antigen over retrospectively test tumors expressed ovarian triple Efficacy the October we epithelial

the level seen both pursuing. by our targets investigators that for high have of differentiation of programs, data the preclinical strength and and enthusiasm validation we We given a the of are

updates. for and selection continue our announced call to Dolaflexin put Tim, the that, With has pharma validate platforms. of to partnerships first our of our Scientific initiation players now to and I with our the would like This partnership. turn our year, over IND-enabling Finally, the ADC terms their our studies Officer Takeda of Chief to platform approach preclinical key discuss

Tim Lowinger

for joining our polymer, Hi, designed and efficacy as biodegradable, simultaneously safety to the everyone our Dolaflexin, is of soluble backbone ADCs while you is of This use to in Dolaflexin highly increasing platform. us. increase due our the Mersana’s biocompatible of a review lead and Fleximer, and potency water tolerability. for part with I'll and begin thank ADCs.

this directly can we rather with create ratios to the which tumors in the results chemical could cells, excellent in the antibody proprietary to This because with is polymer efficacy instrumental properties expression drug low backbone, than attached the ADCs against payload drug-antibody and the than substantially of typical ADCs. Our tumor auristatin polymer antigen levels. target of higher more to for much be efficient delivery improvement potential physical payload achieving

our for to technology, also killing, drug and cell ADC technology for efficacy freely improve us potential which initial is create Dolaflexin incorporates providing to Dolaflexin proprietary to capable tumor tolerability. a allows bystander of Dolalock The Our efficacy. allowing which be beneficial cells is controlled a diffusion adjacent permeable, can the bystander effect released from and

to initially cell in incorporates its result tolerability. membrane, Dolalock cross to formed, payload the our using drug this the released it freely into it’s which addition, losing the In technology, locking ability in metabolic increasing the trigger thereby, cell

Dolalock doing further new platform detail on the in Annual upcoming have some technology April We work will presenting be we Meeting at this novel year. development. On exciting AACR that, data been in the top describing of

We Officer, develop overview reveal are year fourth the that, Mersana’s second with Chief ADCs XXXX new on half in in platform incorporating Financial initiatives therapeutic at our our and these meeting innovative, learnings an over David We of scientific financial call and XXXX. full I'll of to the plan results. a scaffolds And Spellman, for quarter complementary to turn to expand payloads details benefit. to

David Spellman

and from as as initial cash Starting public position, to December was securities equivalents with XXX.X XXXX highlighted XX, December offering Tim. were our XX, perspective, year our financial of a XXXX. XXX.X you, in cash cash, marketable by XXXX million strong completion million June. Thank compared of a the of

will plan expect through We mid-XXXX. our that fund this financial operating position

approximately million to administrative to was expenses XXXX for of the compared up year operating increased Collaborative year XXXX full per on for full X being per expenses scaled General XXXX. million X development full efforts for a research approximately was $XX.XX to XX.X R&D XXXX, for million of to to the programs, by and loss XX XX.X $X.XX XXXX public two the million a compared year XX.X year year year company. the full up Net results share Driven XXXX. XX.X to year XX.X million, our loss compared full of or full XX.X XXXX. net support million and of in XXXX. share or Now, to in year growing XXXX initiating the for the million full the for for million, from for revenue Phase approximately

Finally, weighted XX, periods for I December And respectively. our X,XXX,XXX, welcome XXXX and common XX,XXX,XXX call. were the CEO, our ending shares now, to back average XXXX conclude and outstanding Protopapas, December will XX, Anna

Anna Protopapas

for Thank you, David. goals want To wrap ahead. a give year brief up the of discussion, I overview vision and our our to

data to pipeline. clinical XMT-XXXX tolerated escalation dose dose our we dose the present conference. study establish at a continue our In a scientific First, to and plan maximum escalation XXXX,

then. trial to mentioned, we ASCO from already accepted, we the data have As abstract plan and an we available if submitted

we’ll addition, data appropriate mature of year In the provide we as meetings. the the medical in with expect subsequent connection over updates to course and

Phase data based dose We also on our enroll the expect recommended to X this and expansion dose cohorts. substantially select

and our excited scientific preclinical proprietary intend continue XMT-XXXX, disclose of XXXX. our to technologies our the new well. during If We're and novel Phase product tolerated a that our is candidate MTD established pioneering and cohorts at dose our progress to plan establishing tend escalation process programs to study we year, part later X For platforms this very ADC dose. the as We this initiate select for on intend clinical about as rapid continue plan select to year. a meeting expansion also to next platform maximum of dose enrolment we of

productive talent of Finally, start to to to as continue we mission top by Mersana’s in recruit evidenced pursuit help patients. a XXXX,

the you excellence, support. all Thank We focused your us scientific execution and interest for our joining prioritization of needs. thank and and today will maintain of cultural patient for you

will now to questions. the call open We

Operator

from our the of will And Chattopadhyay [Operator first Instructions] Wainwright. come Debjit H.C. question with line

Unidentified Analyst

in Debjit. is for [indiscernible] This

So few end. questions a our we from have

XMT-XXXX? first, is for DS-XXXX, hurdle data So the compelling the given with internal what

Anna Protopapas

are is molecule some between following Thank you DS-XXXX. and closely. also There HERX obviously ADCs, This the have high question. that our similarities there are differences. DAR. are we both But, XMT-XXXX Both for a some a

is an the an Daiichi and is the molecule we a Daiichi on payload DNA tolerability well molecule XX we With is as mechanism as differences the fact As to that agent. us, it’s a have being while X. damaging we of you believe payload, DAR the more the ours XX the payload which know, have and technology controlled the contributes potent the of significantly Other Daiichi XX Dolalock involve with that anti-tubulin between than with average the molecule.

preclinically That the similarities the being evolve watch to into differences how we'll a Daiichi and efficacy seen translate see that but clinic, get in that set those have differences think compelling our it's a compelling molecules efficacy I on profile of XMT-XXXX. the closely the some confirm molecule. very -- also efficacy profile overall and similarities, that So, more we overall molecule we've of could in said, has as profile high it the data -- had does we one does the compelling will in

Unidentified Analyst

Thank you.

Okay.

is Kadcyla So for positive one -- excessive efflux. our HERX through resistance develop to patients next

So, also resistance payload a in can to impact the payload auristatin maytansinoid XMT-XXXX?

Anna Protopapas

can [indiscernible] that answer question.

Unidentified Company Representative

is payload, Dolalock payload Yes. is substrate. is which that what With active not determined of do we subject and F a a our the to differentiator efflux, P-gp our key we of think technology. auristatin have not ours is part It

Unidentified Analyst

Since HERX XMT-XXXX herceptin antibody, confidence using targeting level a versus is what backbone. novel your others uses

Unidentified Company Representative

thought you Herceptin used out, comparisons made we've either with When deliberate antibody. we see Dolaflexin trastuzumab was initially seek head novel so on our – was does ADCs antibody, not decision Again, ADC. we to a to for It compete Herceptin. an use efficacy ADC, targeted pointed as our to we an the or antibody we be which with epitope pertuzumab an developed ideal with -- do better on with head made versus antibody novel with for that HERX trastuzumab. is not

it that offers risk. think little with no to we So additional advantage,

Unidentified Analyst

additional standpoint some Anna Great. earlier, regulatory I from on touched know clarification. a but this and maybe

in of If to pathway with an on high is assay. expresses, enroll you which objective NaPiXb like selectively toward to an were combination a approval? responses Similarly, accelerated AML there def approved was

Anna Protopapas

there unmet saw of and the each forward both groups if medical we're we preclinical into accelerated studying, in opportunities clinic, the need we that to on paths. with based are have translate the believe we can compelling precedent patient to data move So

Operator

of line you. Cowen. Thank the Peaker next And from with our question come will Boris

Boris Peaker

tolerated the with cohort. mean, my forward is cohort which XMT-XXXX. dose on why and curious believe seventh question you the just important well mentioned at reached to just you're you've dosing is not therapeutic a maximum So I on it if dose do I'm therapeutic and is it dose find tolerated. you move

Anna Protopapas

We believe therapeutically we're range. a in relevant

develops early seeing indicate we obviously were you matures As and efficacy early efficacy recall, and might on we additional dosing. signs over that of with did time

to we believe be mechanism of dose do of the delivered important believe payload tumor side ADC, as in durability could that to will of really it So We the We tolerated get impact given possible. to an and we're the drive our we of much the -- range. the the will believe maximum that and depth responses. as

Boris Peaker

on Right. you question and rare and cancer other And types maybe ovarian XXXX, be? release, mentioned those follow-up non-squamous, what comment some and non-small lung indication epithelial, the tumor smaller Could press expansion in as you a would mentioned cell tumor you additional types. also

Anna Protopapas

thyroid, Yeah. and renal papillary They are papillary endometrial. salivary duct, epithelial

Boris, target levels. at of the All expressed high these, fairly

Operator

Chang line And from come you. our with Partners. Thank of the Jonathan Leerink next question will

Jonathan Chang

ahead ASCO First question. of help set the expectations XMT-XXXX presentation? Can you investor

Anna Protopapas

response on from all could is abstract. I one. that, Well, awaiting are still That’s the ASCO say we

midst will and the we no to XX than to up include -- will of escalation, more patient cohort. in we're any as include dose expect patients seventh the disclosure that XX Second,

Jonathan Chang

And and dataset. going be talk of there Okay. efficacy in can to about data what just to is kind safety that you in follow-up addition also data

Anna Protopapas

this plus benefit. clinical We three patients a that have three So, treat is the design.

them main objective to is profile, the the of dose obviously to progression. treat continue get safety We escalation. the We which

initiating We six immediately the dosing, that is the weeks. have safety after data data, data measured is efficacy lacks every the almost but

have dose not the some efficacy a to with but will appreciate, we that of read So can as efficacy dose the give you direction come data, definitive will expansion. escalation, designed was

Jonathan Chang

about key disclosed the the not program? are of also development program from talk we've learnings an earlier just can HERX Daiichi’s terms And seen on you then plans but question, ADC on DS-XXXX the from what in follow-up that a just data Thanks. -- the development program,

Anna Protopapas

only know we Obviously, publicly. been has what communicated

the which the validated. I overall the with rate. really we The to higher was think that can molecule the the seen that can drugs the is response fact think tumor, response more upon response DAR, delivered built, high compelling, and we the -- drug you more Mersana to rate the of antibody side the be the rates see efficacy ratio, drive deep I the Daiichi hypothesis

So see and that our I as positive thesis. supporting we think very

profile the Daiichi I side is have, think, of the We effect molecule still emerging.

-- three second doses, three are aware, the from involves registration are patients finding. probably and two will randomized main efficacy the trial portion then trial patients you HERX to As their of I dose before upfront on to an three-stage positive believe doses there is is randomization those doses initiated. be there

response I So think rates. we're encouraged with the high

and are data the think, bar that we -- is see it's efficacy to this need. also I this a as it looking in has more better help overall we're patients exciting But sets molecule to understand to of obviously high disclosed. kind profile

Operator

with the you. line question Thank come next And from Nierengarten our David of Wedbush will Securities.

David Nierengarten

type tumor so dose there little the on I it able new is to tumor have far dependent depending looking upper there, think that cells. the to of is the toxin on when Is toxin -- out there the escalation possible XXXX? is And about anything dependent And a or that antibody second you scientific deliver question. an actual question given front then have for then, on by or been XXXX, we’re you accelerating bit is or on is it seeing? theoretical limit at to the you're experience with so or other more linker, a ADCs there that drug for your a the

Anna Protopapas

David. your the first answer first then ask answer Tim I'll will question and to I second question,

accelerated have the dose XXXX. of We escalation

all, a we at started dose. of First higher

patients level. cohorts two cohorts, meaning accelerated dose The one per first were

will XXXX. the fourth cohort dose as as be the by about approximate XMT-XXXX, at for cohort we same we initiate sixth the we the for initiate, time So

Tim Lowinger

the drug are And different delivering regarding there features. scientific tumor, to then different the questions I the David, about importance of components think in several do

and we preclinically. the lower a course achieve threshold higher that efficacy Dolaflexin of expression of level, with and is One one significant We've have platform the antigen antigen because that much deliver on demonstrated relies payload. to to DAR expression targeting internalization

that I directed. epitope makes Secondly, is difference antibody a which do the to antibody the in think

mentioned, with we with our also where to relies comparisons tumor have we well P-gp upon efficiently both contribute As already active one, see trastuzumab efficacy that see the passive efflux, better our the from efficient payload a very of add the the ADC release drug think platforms. I plays antibody. as from head it And as both feature I bystander linkers, drug with I would in the all to a is the internalization, preclinically, to technology then to then efficacy, we have which the delivery diffusion And because between role locks We our tolerability. using excellent capability, versus how on of benefits demonstrated greater released. Dolaflexin finally, tumor cell better antibody, tumor then contributes and and that think proprietary Dolaflexin Dolalock together I in the proprietary this from not cell, factors as substrate of is those again delivery but head

David Nierengarten

pen at about developing I follow in there there or and Is down many more is order the anything kind Daiichi look just or important ADC which when there any guess of components quick when or data a how compound. are out other them new change new variables up, from of less you candidates like think too you about one you to compare your candidates? prioritizing important really think those there is maybe or

Tim Lowinger

No.

one believe don't in all. we size fits think I

what I the distinguishes for us again details drug-antibody ratios. in each look we is higher the So payload, but ours, higher especially of think

technology, payloads together Dolalock think of that still we're match though unique those in is and the very think the I important. the highest with that I field attributes

Operator

JPMorgan. question line our with And from of Jessica next come will you. Fye the Thank

Jessica Fye

I are dose should did that I then missed confirm second for this, quickly, you XXXX. two escalation by year one, apologize on end? And if still complete but First the XXXX

you've for that to but long seventh cohort, me even have you. not still how one? you completed I you think early the wait before was you sixth January. protocol dosing mean Thank we one Should of cohort completed the also the confirmed and Morgan in the next this you that start you take dosing the dosing cohort at can remind JP can requires completing to after update

Anna Protopapas

year. the -- are we complete whether dose XXXX question Jessica, by on the was the will first we of end escalation

the I of think to how our develops when -- tolerated that see how dose. have drug reach and the -- is but profile we'll projection, obviously, our we maximum

this So is at escalate we year. this dose our projection that much time through that will of

the are On data we are, -- include disclosure second at and said seventh the question, cohort. we've I up we in said, cohort what will as are the most seventh to that is probably we the ASCO

Jessica Fye

Okay. you long do that And in to have wait to dose question, you protocol before patient can given the how Great. you one? next the a cohort move just last after

Anna Protopapas

discussing There's to it. from It's additional typically collect a the obviously analyze assembling the lot obviously labs some time the safety with weeks the there's review and three data and for it committee. data and

Operator

questions And the there queue. no are in you. Thank further

it’s my comments So pleasure and for some the conference team to Mersana to closing hand over management the back remarks. Therapeutics

Anna Protopapas

first company. Thank year. all this ASCO since you at thank subsequent the or scientific forward in conferences participating for on excited data with We're programs with our Well, a we've look and you. to two becoming actual progress made you very sharing more public coming call our

Operator

conclude conference. Ladies for have our program day. we may wonderful does and disconnect. This your Everybody, and on all today's gentlemen, participation a thank you

Mersana Therapeutics (MRSN) 28 Mar 182017 Q4 Earnings call transcript