MRSN - Earnings call transcript Q2 2019 | Mersana Therapeutics, Inc.

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Operator

Good morning, and welcome to Mersana Therapeutics Second Quarter 2019 Conference Call. [Operator Instructions].

I would now like to turn the call over to Sarah Carmody, Executive Director, Investor Relations and Corporate Communications. Please proceed.

Sarah Carmody

Good morning. Quarter Call. Second Mersana's to XXXX Conference Welcome We our business second press release updates, morning reviewing earlier this call. quarter this will covered issued be a which on XXXX results and of be of replay the Media today's will our A available website. call Investors on and section

After we Q&A. remarks, prepared open the our to call will

available. risks preclinical our take are risks discovery currently encouraging the the beliefs product and and the that and will platforms development to of cost our and clinical identification be statements These if Form could the annual filed securities subsequent and the trials on plans that They federal laws. the to assumptions or including completed that predictive early are not schedule, of candidates our results of and Before XX, in ongoing filings. of filings, March like results the discussed without company's our more XXXX, than longer clinical information actual for uncertainties at risk on will are of subject on company's mention that we materially, report vary company's begin, management's contain XMT-XXXX meaning all. new studies limitation, call XX-K historical planned, results future to not cause are including, based facts implementation the and will company's SEC on and/or are and programs and necessarily of that the and not I'd forward-looking on statements within These

even company in becomes if these required to statements law, the publicly, update available the as obligation information no by Except future. assumes new forward-looking

Anna turn Chief the Mersana's Officer. And with Executive Protopapas, I'll over call to that,

Anna Protopapas

Financial update and second Good welcome for Thank XXXX. to everyone, the you, and morning, Corporate our Quarter of call Sarah.

our Officer; Finance Senior addition our me Brian Medical today Lowinger, are Product the Scientific Chief Strategy. and to and prepared our VP Chief Tim of newest our Officer; Dirk Huebner, team, with remarks Joining DeSchuytner,

Co-Chief and Jack, Senior Manufacturing, Kaufman, by Business questions our Officer; of and joined will Vice also answers. Eva President for are We who available Michael be

would I experience Prior and held to and development begin, global for Brian overseeing of he was and who Takeda Most recently, at TESARO. life and responsible strategy secular responsibility was two and the over product moment development President decades corporate I Early increasing Oncology to of finance, career, July brings at relations global finance, strategy, in in product joined was Brian leader responsible Oncology. Consulting. investor Vice to commercialization in spanning practice like launch at a corporate is he take Vice at Mersana. U.S. and of strategy Brian, cancer Before commercialization. introduce ovarian us the NINLARO Takeda the for that, his roles L.E.K. sciences President

in will as business candidates clinical ovarian specifically, general, more key oncology, understanding experience XMT-XXXX team. cancer, development. broad as as excited of be very deep Brian's the have our him we pipeline through to on We're advance his well and and

I'll to business now the turn update.

our on to both and wholly-owned stage begin Dolaflexin XXXX discovery I'll for continue progress XXXX, clinical targeting our important programs. executing with make We ADC, NaPiXb. our goals

Let the of the me by unique you of of reminding program. some start features

preclinically. NaPiXb demonstrated NaPiXb improved ovarian to target, competitive in molecule in adenocarcinoma expression today's and expression It lung have against target, oncology target. and First, attractive a rare validated and and healthy best-in-class in validated we have extremely given highly environment is and is a cancer first ADC tissues. limited a a its efficacy potentially is tolerability clinically

lung significant XMT-XXXX, ovarian for indications unmet key medical and two the adenocarcinoma needs. Second, represents

pleased Within more on played patients Dirk population. treatment duration of efficacy move this with We of are are cancers therapeutic ASCO. significant what investigators and are see, these very focused adenocarcinoma. will options. emerging efficacy, and signs a and our in and options treatment can forward at and patient and with out current these We profile promising limited favorable ovarian that presented late-stage pretreated on tolerability hopeful the encouraged patients cancer safety And the of their this early heavily few by are cancer we XMT-XXXX, make cancers uniformly the as details initially keen advanced platinum-resistant These with difference toxicities. we recurrent for lung provide living and have context, are was to are seen we under families.

selecting are to the platinum-resistant we initiating on dose the reach of cohorts. progressing result, in chemotherapy cusp plan a a treatment. and proof-of-concept executing adenocarcinoma As aggressive lung We're ovarian cancer and expansion anti-PD-X an after and

done diagnostic strategies trials. in proceeds. proprietary updating on pivotal selection better We expression, preparation considerable in patient progress NaPiXb measure important We our have as also our to to you forward study defining look work an for our in the tool validating

efforts. Turning our now to and research discovery

later to first disclose will on, clinical the of our candidate of the around on discuss continue filing progress half We the in IND and we tragedy. plan year Tim end information more are As significant the next XXXX. ADC of in an to targeting this make advancing

XX well $XXX provides progress financial us the marketable drive cash, through a to capitalized months. in with which runway are in million mid-XXXX. We significant securities, We and cash X next intend equivalents to

belief his as Lowinger of I is team, not the and his been he and our liver leadership, key change take a innovative development and and Alkymer platform Mersana advancement and before the a the would Tim he Scientific platform almost the to joined a rapidly of ADC to ADCs rest platforms, additional are at Officer. Scientific moment to Dolasynthen, the of technologies and our to that Immunosynthen a platforms. recognize Chief inception, I and a one-size-fits-all Under developing ADC has including DolaLock our the strong of Tim's approach, pipeline, creation including team and innovative technology. turn our unique and of Dolaflexin Officer, Tim title architect Technology in announced Chief Lastly, like over call

truly with expand the patients. of provide meaningful clinically further broad a to deliver potential the and ADCs the additional of to scope science technology, the unparalleled. Technology role are contributions excited date and these is We about new contributions our our describes significant population as cancer his to both for patient to opportunity and Officer and on and his of Tim's emerging Scientific commitment Mersana. better at Tim's Chief title platforms his benefits our of they science us Based

clinical call at I that, the disclosed now With Phase turn XXXX trial. will data to discuss and Huebner to the over I ASCO the Dirk

Dirk Huebner

good Anna, morning, and everyone. Thanks,

we As Meeting of in excited these express patients to Most solid data ASCO to from interim dose XMT-XXXX tumors patients at the platinum-resistant Phase June. have cancer. Annual in likely I present with Anna the of escalation study ovarian mentioned, were NaPiXb

discuss With and So before ovarian to the treatment need I medical a this uniformly important less setting. characterize data, is cancer than the terminal unmet platinum-resistant of a year. regimens, in current with median it survival severity is overall the

were in response and chemotherapies care response effects. months. combination side chemotherapies, agent of shows decades additional this to late, these XX%, ovarian showed lines chemotherapies which which X have arms. in of rate setting and median of in Of bevacizumab standard single there fought agent studies, recent a chemotherapy X the Generally, PFS control of a cancer platinum-resistant X% early these with Even XX% III the several and of rates Across with approved between been ago. Phase studies randomized single

disease overall As control rate lines increased response and decreased rates of substantially. therapy

of this XMT-XXXX patients, early presented benefit these ASCO every of with encouraged of evaluation May were NLCLC We cancer signs are including see from XX patients. to and X patients, and included the patients in week X were well Further, at the data as NaPiXb. The XX year expressing remainder the as patients XX once as more included the regimen tumors potentially ovarian rare data of

treatment-related X lines of of dose. X which XX. to they And patients were tolerated of X regimen XX-milligram per lines. X isolated ovarian and XX X returned were therapy heavily The grade therapy pretreated The that between square prior up with show ranging including objective between doses cancer of lines treatment-related and square for were and up meter meter to four range all responses XMT-XXXX then every and prior Patients square was median milligrams with and most dose. median per prior Once in week and well at events patients, of XX-milligram next per the to a observation most XX events and at X data the grade fatigue adverse the X grade before meter nausea, transient elevations, headache common AST frequent or baseline and and adverse higher. high

neuropathy other platforms, ADC treatment-related as observed. neutropenia, ocular not associated such Furthermore, toxicities AEs were and with severe typically

above, XX X Of weeks. in ovarian patients XX X meter on less In patients the disease, XX-milligram is XX NSCLC. X -- stable achieved single PFS cancer treatment of type partial than including agent were the additional these half efficacy confirmed data square and XX per including of and of with treated expansion show NSCLC with months. during than lasting adenocarcinoma, and X patients, landmark early chemotherapies more at patients the patients of selected that platinum-resistant phase, important median for terms planned tumor responses achieved signs an weeks

target progress had and She woman on ovarian cycle patient meter patients reminder, at context, responses and response lesions with a therapy, XX-milligram of were expression. put without XMT-XXXX cancer is bevacizumab square weeks. cycle We cyclophosphamide. X. this who X had our a population per the and partial As previous reduction in saw Further, you prior with case X in at preselected XX and share This these was had I'll in the of study. end ovarian She X XX-year-old a lines received therapy not target from end XX% for X study patients patient help which to the a reduction XX% of at to platinum-resistant cancer. this lesions received NaPiXb every

I study. of per ASCO finalizing the the escalation evaluation are dose we XX Beyond Phase this square dose cohort milligram data, in meter

and We MTD, dose the process We X are in a go-forward XX of third have meter tolerated dose, of ovarian enrollment will of patient close in every per and believe plan sites such, to expansion not cohorts. identifying bringing yet is initiate which as the study effective we and cancer adenocarcinoma either quarter the to NSCLC for the milligram additional are on square but or XXXX, and weeks. XX we be reached the

of therapy. more chemotherapy, patients who treated aim group, platinum-based or with have In group, the in had one antibody. the who first to an In anti-PD-LX NSCLC second line combination X or platinum-resistant we have than adenocarcinoma lines prior either enroll ovarian anti-PD-X no failed we more of monoclonal cancer sequentially enter patients

archived mutations fresh further are also third patients A populations, expansion to both as patients and than to or initiating require between XXXX provide lines We NaPiXb we oncogenic one biomarker We in expansion efficacy. preselected. expression have enhanced no and with and not biopsies chemotherapy. of samples Medicaid targeted forward tumor the will tumor and this of had options dose phase EGFR these In eligibility plan higher potential the patients. therapeutic more such therapies driver of enroll for feasible outmutations, of criteria line patient will look the correlation to to evaluate the quarter be study

now Tim Scientific and Technology turn to our preclinical will Lowinger, work. next-generation to ADC our and it I discuss platform over Officer,

Timothy Lowinger

and the difference Thanks, disease. XMT-XXXX The potentially words Dirk. kind a and to in And make see excited team each thank entire for is you, Anna, patients for their acknowledgment.

on we the remain an to file details candidate half Beyond XXXX. study initiate the make and first a progress discovery the XMT-XXXX, the plan Phase candidate we've that efforts. our We in next end continued year, IND disclose and around of of I nomination our significant to of track on to

differentiated In believe platform approaches. do We other our to for from innovative ADCs platforms that continue multiple ADC our matched targets progress addition, to meaningfully technologies. we are additional

DolaLock have antibody proprietary we before, allows to a conjugate payloads unique to has than described X typical platforms more and payload Dolaflexin As per our ADC us platform Xx our mechanism.

highlight like Helsinki, efficacy they Therapeutics for same by to paper Barrack's ADC report ADC Cancer greater a target. [ph] molecular a accepted than in Mark I Finland, in that group recently to Dolaflexin the maytansin-based which show would written a

primary with as demonstrated efficacy they maintained in ADC the as that cells well resistant a in addition, in maytansin-based the the to In acquired to was vitro activity maytansin-based resistance or vivo ADC tumor in xenograph ADC. Dolaflexin that tumor

play metabolic cells that target through bystander pumps acquired the in Pgp in of Pgp the These many in payload Barrack And a the DolaLock of eflux. mediated the findings Dolaflexin As differentiation resistant independently even the efficacy from tumors, role our with Group DolaLock avoids controls pump consistent reminder, resistance in significant the the potential tumors. and platform technology step and benefits payload. effect a locks a substantiate for our

also which we've innate is to Immunosynthen. Immunosynthen delivered Immunosynthen be platforms, beyond Diego, ADC to from optimization platform of to XXth antitubulin immunomodulatory payloads, early proprietary significant based We Annual World immune goal and ADCs our the ADC some payloads October. the take made progress platform, to tumor our DolaLock and provide safely on plan immunostimulatory San our an response. and Beyond antitumor efficiently traditional platform stimulate present cytotoxic our approach in the efforts data more advancing can ongoing Conference in California in at The

And I'll over with to and SVP, that, call the Product Mersana's Brian turn Strategy. DeSchuytner, Finance

Brian DeSchuytner

again, you, Tim. to and the with combination at platform company's pretreated a lives many heavily Mersana clinicians that I'm with be, in attractive ovarian difference Thank The On demonstrated patients, team patients cancer. of team care responses differentiated opportunity closely is join an for in with first-in-class and personal in a a of with a people I'm management experienced note, tremendous meaningful the living wholly-owned and to a important thrilled at cancer. working glad the investigators growth. make stage this asset to unselected the

second turn of let of our marketable equivalents Now in cash XXXX with securities. quarter million me with used second ended position. million $XX.X cash, the and the quarter operations net and I'll We financial in our cash in start of XXXX. results, quarter cash second We $XXX.X to

and the to have through provides will Bank with drawn flexibility. the our up In non-dilutive to of million Silicon We additional up purposes general into first clinical was cash current the a we financing corporate million us to tranche of the advances of financial fund agreement, $XX million execution The option to for position XXXX. working financing several May, completed capital the agreement. and ability at least operating upon plans $X draw that of debt through the additional milestones expect cash Valley with with $XX for our key draw August down we terms Under mid-XXXX.

$XX.X professional Net the the XMT-XXXX. $X.X period the XX, quarter million $X.X of for and ended to Any same results. quarter increase in million by to net the of was the second headcount some of revenue collaboration second a $X.XX highlight in of the quarter for $XX.X a XX, key the of were for regulatory decrease same data of for Research in June to in second in for second result expenses clinical XXXX. well discontinuation $XX.X million, primarily timing partner Collaboration outstanding of and the per second million I'll in quarter XXXX, share from Weighted increase million the and offset This of $X.XX by primarily XMT-XXXX of million approximately our our or to compared per This XXXX XXXX. compared in the about common XMT-XXXX the $X.XX termination milestone efforts next development costs. same of flat Takeda, the was compared a of programs XXXX fees. share or to offset decrease support external were now, was and And headcount due during revenue loss the payment and costs was expenses XXXX the for increase a timing expenses for manufacturing for facilities quarter million XXXX. financial the collaboration was $XX.X compared consulting $XX.X $XX of of a period approximately same XXXX, June period candidate decrease quarter million This recognition at and for the second as in respectively. by driven million the was remained and quarter as increase XXXX. XXXX in administrative approximately loss an for period to XXXX. an external average shares General costs XXXX with in and clinical

call the pass now Anna. will to I back

Anna Protopapas

This up-to-date to continued Thank keeping look a of time forward our on you, we of the you progress. is you really your Mersana. We're support Brian. expansion Thank and at our for Mersana. cusp cohorts, initiating on exciting

call now will the to Q&A. We open

Operator

[Operator Instructions].

from with Our the Boris will Cowen. Peaker first question come of line

Boris Peaker

cancer, to anything NaPiXb of do can know early I'm just know expression? inhibitors chemo in pretreatment just how with therapy curious, lines we the checkpoint or want else lung or in I impact

Anna Protopapas

Boris. question, Good

us done line some really an forward. collaborator analysis tissues, go that of has of and are very publish a of soon We will have academic have is issues confidence large sample an adenocarcinoma. in point with and annotated NaPiXb at of that well that given broadly expressed determined And to lung

who big patients on the those know and prognosis. limited those on there's focused because for need have options we're are very indicated, poor therapy. a patients a we've there's progressed PD-X Dirk we patients And that big and heard have -- As for unmet platinum

Boris Peaker

just far. surgery? Or But want with is done you've to just Was altogether databases, kind clarify that this naive there I evolves of that inpatient, the work how treatment? treatment during so pre expression the

Dirk Huebner

Yes.

Dirk. is this So

archived work that mostly have the So is we tumor done tissues. on

So research soon, Anna in lines -- by expression will as therapy. prior iterated public NaPiXb evidence that there's as no we're that that make far we of be described the that the aware, the would the

I target these and that we ongoing lung are course, ongoing the about -- new mean, think new of for this in to adenocarcinoma research are be I here mainly. game are So in done is therapies needs And and talking relatively a research, lot.

Operator

the from Jonathan come line with SVB Leerink. will question next our And of Chang

John Barrett

just Congrats so on can john dosing? cohort color Jonathan. is the provide are had progress. question. This one any milligram in XX for you progressing And I that far? Where how on Barrett on the you is

Anna Protopapas

to encouraged on we're program. profile continuing the So with the we are see

determine get think, I And forum are up the question close, data We when part kind the right dose think of is dose remaining to said, second we data. escalation as expansion are disclose cusp forward. going we running, really, disclose and moving the that will the cohort to the and up on wrap we as the the I I the study. very selecting of of Once

Operator

our with question come next H.C. will And line Debjit Chattopadhyay from of Wainwright. the

Earl DeSouza

This is Earl for DeSouza in Debjit.

questions just on So our end. X

XX or or program? -- the advantage one PKPD confer XX the first, dosing sorry. Roche is the any -- data recorded the And ahead, second dose discontinued new at XX% significant The from are of go mg versus reported

Dirk Huebner

Yes.

in move we proportional pharmacokinetic in the session have poster far, that a that as at exposure we we So the ASCO have increase which the dosing. so basically suggests data we presented up the dose

other ADC related as of differences And up there's scale. move and we in the include exposure to words, would in So XX Cmg that terms yes, milligram. on dosing the

Earl DeSouza

my it? safety is, are starting you And Great. dose? profile simultaneously cancer you lung on on both the staggering be And staggering cohorts it, emerging or planning the QXw follow-up expansion if you're ovarian dependent it the of will and are

Anna Protopapas

First, and we have time. same the are mentioned, both we confident as quite The that forward. the efficacy good, tolerability. terms profile to at I data cohorts both starting are in of And we looks move

We guidance. in ovarian and past And to go cohorts give have be recruit definitive but two already we sites able faster we're ovarian. the artifact to the that at, expect these to of quickly. more the expect we need said these It's with you have sites to that experience an we start than that, then

Operator

come from with Instructions]. question [Operator And next will Jessica JPMorgan. our Fye

Jessica Fye

need that Or you end initiate XX the data help and decision X months need comments that between to that than dose is the to what third evaluate dose? these will less the the weeks the selected quarter, the you'll you make with and go-forward you coming additional dose to for move have you you of expansion quarter, forward the it? said in before cohorts and just become do the XX With info in available

Anna Protopapas

cusp of we're the moving lot the And we need. a forward, of literally Jess. on have data We

Jessica Fye

a just then follow-up. And great. Okay, as

rate you've so see we link might that PFS? far just a and platinum-resistant and lot think to important the the future, are and you the of dose in As the data in think response Trying the the how some how with seeing cancer, between results on about escalation can that remind about presented strong me additional from is. duration patients kind ovarian actually of response stable is rate we that just therapies, of disease

Dirk Huebner

of aspects so terms responses order those. most qualities. may most PFS, be this to critical in progression one come is important how would So the of correlates of in Response and that this with in to thing, prevent that different PFS a just the can determine I your number remind

were So and progressing. they responding, patients keep responding not who are

has an on further, PFS. that influence So disease. stable the But

also So impact if is have who you someone stable, PFS. progressing, would not positively

of in cancer about in also of what that we our So focused The see as that's we poster, NSCLC we adenocarcinoma. the control and in an rate in disease that stable example, is XX%. in the amount the are you the for why very but interested see, ovarian an interested on range patient population, disease are responders

So into we feel populations. moving those very comfortable

Jessica Fye

you steady Okay. me, patients progression like if just dose protocol treatment? benefiting allowed for can were they Great. in past drug from were on the And to felt remind escalation, stay doctor their

Dirk Huebner

Generally, when come patients off those they Yes. progressing. start

Operator

I'm further And the questions showing in queue. no

to I'll Ms. remarks. back over hand or conference now the Anna for any closing comments Protopapas So

Anna Protopapas

just all cohorts. disclose exciting We're program, we're I you. the information for you joining phase call. and tuned expansion into Stay the Thank move more we of thank for with our forward an as to encouraged So seeing. what want

Operator

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

Mersana Therapeutics (MRSN) 10 Aug 192019 Q2 Earnings call transcript