MRSN - Earnings call transcript Q3 2018 | Mersana Therapeutics, Inc.

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Operator

Good morning and welcome to Mersana Therapeutics’ Third Quarter 2018 Conference Call. Currently, all participants are in 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 over to the Mersana team. Please proceed.

Eva Jack

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

Anna Protopapas

Scientific welcome and Thank in Officer. quarter Chief call XXXX. Tim Dave you, addition is Financial to With Spellman, Chief to everyone Eva. Officer Good for morning our and Lowinger, me update our our the third Eva Jack

towards very our ADCs. a progress of make position to significant continue We in goal leadership building

lead dose dosing seek optimize implemented We and programs our changes as important have we two protocol in schedule. to

might us that differentiated will highly new benefits that deliver announced ADCs to additional explore patients. allow We also our to platforms two proprietary

research we provide led a for to to engine pipeline. ADC by continue platforms foundation the a leading build Our as development seek Dolaflexin productive

continues is and non-small first-in-class the the are targeting updates Dolaflexin data. clinical XMT-XXXX NaPiXb. cancer. NaPiXb rapidly move XMT-XXXX. start will cell with expressed into programs. our in The emerging dive we non-squamous encouraged cancer lung two our by ovarian I is to broadly for program forward now Let’s and ADC epithelial

We milligrams X-week per every once have at to squared. XX up evaluated XMT-XXXX dose on levels a meter schedule

announced of with optimal schedule have the we exploring dose X-week objective for the we before, a are schedule identifying this every and once As drug. now

completed have cohort X-week the regimen XX every squared. first per at We meter the of milligrams

and Although are patterns as tolerability early, enthusiasm the as are the well the the we safety, seeing. with encouraged we investigator efficacy

our squared. next We per enrolling at meter dosing XX are now progressing milligrams to schedule

exists our test for disclose available only our we informs We NaPiX expression. and characterizing interim planning. first plans expect on half data the the data ADC XMT-XXXX commercially is development to X of Phase in expansion XXXX X XXXX cohorts complete no data and and selection and clinical matures NaPiXb dose Phase share as in on the may for

reason, immunohistochemistry this antibody developed patient proprietary based an of and we For tumors. anti- NaPiX diagnostic for have test novel on a characterization

We to will this antibody MERSXX. as refer

of Toronto. subtypes NaPiXb the data We of our of a important that clinical regarding this antibody expression histological potential the demonstrate reported at presented to World of We in in preclinical Lung Conference have recently on differential the have different data and diagnostic strategy. lung valid XMT-XXXX demonstrate we development for an component of cancer. other published This patients, characterization MERSXX test is MERSXX

cell cancer. gastric with tumors. cancer, a is non-small XMT-XXXX lung Let expressing and cancer HERX me ADC HERX breast XMT-XXXX, studied now turn expressing to targeting patients being Dolaflexin in

reaching dose levels on a escalated ultimately through entered As XX.X clinic schedule, reminder, every meter the had once squared. weeks per milligrams X X we dose a

milligrams six study per is We have XX.X which at dose have to once square. the and revised weeks protocol four meter a this schedule levels every resumed

every six four expect per seen data dose be disclose mid-XXXX. where Phase XX.X are the hope dose expansion options. and meter X potential level as profile have to meter and on detail two treat regimen will the limited and These benefits solid very hard to the to square schedule that dose on selection we for We resumed our enrollment. level programs between we square. week XX.X the plans once milligrams that’s have to translate to dose address cohorts that’s eight pleased project the that per We by patients well. milligrams XMT-XXXX clinical trial tumors XMT-XXXX And has treatment We from

develop to We are novel these evaluating the best ways medicines.

we the for schedules dosing with are of objective patients. exploring profile the previously, discussed optimizing As

also a We are combination as also evaluating treatments. agent, with expansion but in both cohorts single of selection other for target patients

the XXXX. in on update will specific early plan We

Beyond pipeline. core forward competencies ADC XMT-XXXX patient involves each Bringing the of right To-date an of discovery in and and the development range to every leadership developer believe the involves ADCs capabilities and XMT-XXXX, to developed we component robust right the linker, to technologies. this transform We payload drug ADC antibody, achieve outcomes in truly the that be the are latching ADCs other goal. antibody novel ratio. optimizing target to building of has the able right tools appropriate no at a

to discovery the will optimization. doing. of turn are the discuss Tim, I to we this We on to now Chief cusp of work Officer achieve being the exciting call Scientific our able type over are

Tim Lowinger

Anna. Thanks

our tune to payloads to our of properties seat leadership fine range expansive that innovate are that and Anna the a to continuing ADC and platforms needs on diverse of mentioned in on patient as will more execute with allow strategy create new ADCs of to optimize ADCs field. us address the we As we

therapeutic targets advances platforms us have to our this valuable week. at additions tumor going our which features are help forward. These will adaptable molecular expand into increasingly and patient in new technology provide types populations later differentiating approach presenting portfolio and We first are two data Dublin on new an and to cancer symposium in ADC the

Fleximer, but describing XX. to of antibody developed also of from homogeneous properties scaffold and allows ADC control synthetic to will ratio named we for the we be maintains precise First, which X a favorable that Synthomer, fully drug have

shown the a for our with optimal that this the DolaLock have given as the matched for what well antibody from target existing to we index of Synthomer to ADCs. apart refer homogeneous as to therapeutic ability DAR payload combined precise optimization specific create for control Dolasynthen allows completely We as of

novel DNA also also precise disclosing reach control. patient a the damaging while we same our which potential are and platform our the payload, as proprietary ADCs We DAR to refer broadens Alkymer, allowing for of

platforms auristatins. responsive platforms, is all our Mersana This year. to ADCs optimization benchmarked next are which and and and select as platform clinic indications DNA other highest pursue damaging prioritized the as forward have colon demonstrated us improved allow evaluating We cancer, as antibodies three have of such with tolerability. against molecules significantly set expect clinical benefit to Alkymer Dolaflexin, currently agent we well efficacy our and Dolasynthen improved platform ADC to to the next typically not selection the more into our potential bring against share and ADC information of our with targets about to will

platforms achieve potent themselves delivered that described, leveraging to the how just excited an approach I of these to cytotoxic a cannot we systemically extend A payloads about also are approach number and be we payloads. beyond immunostimulatory lend Beyond therapeutic three index. to ADC wide are now

to by that, I we call ADC developing Dave such And data focused turn an Officer. encouraged We are will the Chief on very are Spellman, over with Financial and early the that currently Mersana’s generated. we

Dave Spellman

Tim. you, Thank

of for financial cash quarter Now remain position. XXXX recap a with well-capitalized our a We third results. strong

XXXX. securities Our as cash as XXXX of cash, XX, and XX, million marketable to $XXX.X $XX.X December September were equivalents of million compared

position will financial this plans key fund expect We XXXX. milestones and our into operating

expenses approximately in development. the Collaborative change approximately driven the for third to in by future of expenses the $X.X same and million increase some in Some XMT-XXXX for million will was a regulatory increased period to clinical for for a in $X.XX quarter revenue compared concluding and lead and $X.X following. million Anna headcount due as timelines in XXXX for driven September loss approximately quarter our professional compared XXXX the call XX,XXX,XXX for of outstanding include development primarily $XX.X the third primarily and period loss an for third reduction manufacturing third for period efforts the $XX.X our ended key XXXX highlights the quarter to And same the to for back by were cost Weighted the shares on a I to progress activities million for compared share were share clinical the quarter and in now, and ended by primarily the quarter or Research activities to to associated quarter in programs XXX. for average same XXXX increased the collaboration the $X.X $X.X $X.XX support Net million with a a XXXX. million General XXXX period administrative to compared and fees. in of employee-related XX,XXX,XXX the million return were same XX, an driven million for common XXXX was XXXX. XXXX remarks. expenses of XX, $X.X or $XX.X increase XXXX quarter Rule third due September the per net

Anna Protopapas

update midyear week of as data Thank you presented data all escalation later meaningful dose the We half at stream the X X as of this look with us full to we continuing XXXX. well the in forward for the triple today. preclinical will XMT-XXXX our for the This XMT-XXXX first next joining year. meeting Phase out of study in read selection steady dose Phase our as continue

remain evaluate can extremely Mersana. partnership across real as well provide We XMT-XXXX. for and continue novel clinical patients continued existing confident benefit opportunities as and Thank for options. also assets of potential to technologies limited your for that our will platforms support for new We with you our a

the Q&A. We call to will now open

Operator

Our Instructions] from first Thank Debjit you. comes Wainwright. with [Operator H.C. question Chattopadhyay

open. line is Your

Debjit Chattopadhyay

I’ve if morning. taking good the questions. for you got Hey, I two, Thank may.

cohort mgs be cohort – square on XX or higher higher? assume per the if without the On meter the we next first should will XX% XX% hiccups, XMT-XXXX, progresses

Anna Protopapas

don’t leaves I and question. good think make a I it – made us decision. investigators allows to think really protocol a the That’s to final the that we’ve decision,

The meter the whether in data which and XX% on squared, XX on per or XX dosed between. way And As you milligrams know, we think – going meter have schedule. see drive in is we’ll whether is schedule to squared how milligrams to our decision. somewhere increase X-week decide up goes the the we go I go to the X-week per we

Debjit Chattopadhyay

for that any you. interim to you’re patients? you’ve And in Did planning I have seen? year or an data. emerging till platinum-resistant clarify wait middle so your and by correctly you’re that refractory you these the that the Thank that? data? And mentioned hear for we Could responses you data data, next remarks really encouraged of prepared don’t Are plans some interim

Anna Protopapas

very are So, They a advanced. had We’ve dose patients imagine have is in more we this therapy. – so as oncology, you or that patients XX lines can are escalation of platinum-resistant. the had

So very these typical is advanced trials. patients in as

is we we really the So what enough the your the – the data we I full emerging opportunities, set data. that in we is – might data committed full But the think we the appears and think and of – have escalation of of question in we of the release set we release will of the profile if interim first release and first was half. drug half to And year. mature have representative said have dose the data

Debjit Chattopadhyay

back. hop I’ll Anna. you, Thank

Operator

Thank you.

question comes Partners. with Leerink next Jonathan Our Chang from

open. is line Your

Dave Spellman

morning. Good

Jonathan Chang

Hi, questions. good my morning. Thanks for taking

you NaPiXb ADC for reasons the Roche First question, us what in remind confidence happened and can XMT-XXXX? with

Anna Protopapas

data I Genentech if it’s product. efficacy that and programs I improved in their tolerability and against in more because shown significantly promising he better in a NaPiXb, encouraged efficacy a the well have a detail. we Yes. we ask significantly models, that have he as – superior as the have in And has further ADC more their, tolerability, very I’ll to X we benchmarked so us versus studied – and index. Actually, suppose, our Tim, think anything makes can wider therapeutic add, head-to-head Maybe it’s

Tim Lowinger

Sure.

a and study Phase So relative They small about XX% was Doxil. in ovarian Jonathan about response cancer. saw improvement as XX% Doxil. you a free-survival randomized X It progression do versus a X rate Phase did Genentech, in they know to with a worth

because the was have didn’t they very However, statistical that of and for endpoint. reach they stopped that their portfolio the It’s a reasons results our that published they study, program study. small understanding

than that regard in even we at the that in look and the detail. potential we they’ve Genentech mentioned, one did with can data much Anna also think What molecule generated efficacy. differentiated we is know and as we’re have molecule. greater where one benchmark head-to-head We ours a Genentech saw greater the So

what’s with the with at as DAR. think then toxicity. have caused because And even ADC fatal dose very is neutropenia don’t molecule, important so no neutropenia our that a Genentech definitely I twice saw anticipate we also that We also high the being dose-limiting a we

for to molecule than We have ovarian multi-drug and a expression is NaPiXb had. cancer for lower our E robust resistance Pgp patients efficacy of payload not another auristatin a AF monomethyl which occur example. much F upregulation that Genentech in is And The with can is threshold we MDR molecule have example substrate see used for and technology our auristatin point substrate. DolaLock demonstrated or the Pgp a Genentech which

confident And together compare our taken favorably Genentech drug so with us all will the that molecule. that of feel very makes

Jonathan Chang

Great. Thank you. That’s helpful.

and alpha much between NaPiXb how folate ovarian cancer? overlap is there expression in question, Second receptor expression

Anna Protopapas

that. take can you maybe know I Tim,

Tim Lowinger

Sure.

ADC investigated appears across between be patients Based as but so that So there both, have and NaPiXb some we will overlap we is receptor. immunogen correlation correlated. patients, no many Both RNA that’s are databases, there because broadly folate following cancer, are ovarian they course molecule essentially the expressed the on not in to are express well. of something the

receptor patients to So don’t express folate are express that likely NaPiXb. still the

Jonathan Chang

Great. Thank you much. very

Operator

you. Thank

with Jessica Fye Our comes JPMorgan. next question from

open. line is Your

Jessica Fye

the confirm can for in make not said single to to taking morning as combo, of heard are Good was your that what of expansion I when we the correctly sure as have escalation had then and cohorts I prepared patients community, cohorts. on select just guys, a), I for I also Thanks identifying see correctly agent, will Great. so you wanted I for that as also think heard you. go will seen Thank but you And you two, a elaborate you the if remarks, can think questions. not a related you XXXX, what envision and would if you XXXX, I my on maybe when data? combination – potential we B, clarify that mid-XXXX forward complete have second complete dose dose if investment some

Anna Protopapas

are So them in products. are leveraging and where obviously where what the combinations synergies the of unique we on we are combinations, aspects and understand – to development presume should really and starting priority can really there our we

might synergy remember DolaLock Takeda that with last cell is and published that year Dolaflexin partner, our platform, death. we and our you payload our platform, PDXs both data immunogenic with So our there induces

but potential probably is combination are thinking role? where a about to a combination is us combination Another interest of obviously that with trastuzumab. is we play So which does not obvious,

have only that and epitope are that pertuzumab, novel some we data effect the with efficient and more with that ADC that based We have the is combination when and of trastuzumab our ADC data a trastuzumab published And on combined internalization in-vitro than antibody different work is some and we binds synergistic that have to some pertuzumab. shows done in a trastuzumab.

two are where doing to and those we development ideas of considering decide So our of trying really are they the in further future the fit products. studies

Jessica Fye

with parallel single start expansion agent cohorts combo in those the cohorts? Could expansion

Anna Protopapas

we think have yet. made that decision don’t I

we studies. yet additional made decision. We exploring we preclinical doing these haven’t But are a are

Jessica Fye

it. Got

Operator

you. Thank

Our next Ulz Baird. from comes with question Mike

is open. line Your

Mike Ulz

taking Hi guys and the thanks question. for

ovarian of cancer expression Just remind your you one that thinking not? secondly, based can to NaPiXb? patients Thanks. patients current on us XMT-XXXX, percentage cancer just in And NaPiXb lung on terms the select whether then of or express what’s and

Anna Protopapas

and done we XX% others done, and in cancer that So of lung work antigen a XX% cell find is the expressed – adenocarcinoma have we’ve large based we’ve non-small cancer. work on ovarian very the done, to

antigen will whether in later data in are is escalation, are and based decide expression dose of the retrospectively the we we necessary development. it selecting and stages we measuring So not on

used and patients want can be an We that do decide select we the if to we with assay are is down that road. validated ready

Mike Ulz

Got you. it. Thank

Operator

next Thank you. [Operator Our from Instructions] Wedbush with question Securities. comes David Nierengarten

is line open. Your

David Nierengarten

in using or difference was at Hi, but just you’re of is was the lines how least MERSXX you there guess, the a on a to of a retrospective study? close analysis curious – any thanks just you’d the mean, select, for seen in a differences expression it antibody types? not I it longitudinal in deeply if the suppose I’m MERS to curious I And also taking for for kind antibody background say question. the how I I call is any going are how therapy or antibody, diagnostic to for into primetime, for mean, I guess, I then as on if – MERSXX and tumor different ready little larger gone – multiple Thanks. I in you’ve or expression quickly

Anna Protopapas

one, don’t can second and I’ll the I take one the know David. if first take Tim

a pretty we really could – a partner a what with it’s We’ve diagnostic lot approach of these assays. have really doing there. a assay, we be go decide and this developed if are We diagnostic to we we quite robust. experience a relationship to that has parallel, in to taking it are transferred lab have companion In staged developing

the are needs aware, developed the two development stages diagnostic in be and to into of best doing already it parallel with necessary that the drugs, move working with to way we’re that’s product, that. companion to a ready you that’s be work later we the partner if on to so develop we’re the decide As

Tim Lowinger

I just David. that, add can to And maybe

is and the we developed different have that time between and tumor in see xenografts really we patient-derived of longitudinal at We different NaPiXa in see looked – in levels in pre-clinical expression. sort data such efficacy. many clinical the studies We NaPiXb decrease don’t a can and we’ve in expression can correlation samples, of assay discern not assay following have We a been setting, we setting disclosed NaPiXb and over most it fresh well. point clinical time. been of But the in it’s the applying future. biopsies, that we’ve archival it this the in haven’t in certainly biopsies, the And models. this NaPiXb already something of assay expression mentioned very patients allow at for today to But over those will works in validated, terms as that

David Nierengarten

Got it. Thanks.

Operator

you. Protopapas to for closing back Thank this like I’m And call remarks. further turn showing the questions I’d Anna time. at over to no

Anna Protopapas

Thank you, company. In everyone conclusion, leading joining making a for in progress our steady ADC are call. building we

the hard-to-treat the for sharing you, an near-term patients in you for dealing We’re look to to make well significant positioned forward with milestones have joining Thank we months. our with progress few impact and next call. cancers, again,

Operator

today’s conference. a Ladies concludes participation. and this for day. gentlemen, Thanks wonderful Have your

Mersana Therapeutics (MRSN) 13 Nov 182018 Q3 Earnings call transcript