MRSN - Earnings call transcript Q3 2019 | Mersana Therapeutics, Inc.

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Operator

Good morning, and welcome to Mersana Therapeutics' Third 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. Third Mersana's to XXXX Conference Welcome We our business third 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 our the will today's remarks, will call our A available for After website. Q&A. call Investor on and we open prepared section

assumes new even report future. obligation without limitation, publicly, subsequent company available not preclinical facts of our the forward-looking statements by contain to are Form risks the that and not of on necessarily These for longer we candidates of new implementation filings, statements than I'd development identification federal and laws. management's vary the assumptions studies; including, Before on plans becomes or update if clinical securities will beliefs begin, historical completed forward-looking discussed XMT-XXXX if the uncertainties are and predictive will company's all. are to ongoing clinical our results like currently company's and programs the call to could on schedule, in encouraging no to that materially, discovery XX, statements required including These on based in on product not actual are that or the and planned; filed take available. the at mention cost more results results meaning the of subject law, risk trials be XXXX that platforms and/or that and risks the future annual company's within the They information are of and these the of cause early our SEC March our XX-K filings. information will as the company's Except and and

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

Anna Protopapas

to of and Good Sarah. you, everyone, third quarter corporate morning, XXXX. for call and the our welcome financial Thank update

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

by also and for who Eva Officer; Business will Kaufman, joined Senior Chief of We're our Jack, CMC, be available questions. VP our Michael

As a year. our and well-tolerated at for and clinical data responses reminder, doses showed data and at dose XMT-XXXX, NapiXb patients. first-in-class interim ADC-targeting activity Phase ASCO and escalation unselected wholly-owned Dolaflexin disease presented This prolonged we I this in heavily pre-treated encouraging stable durable

We readouts. on are and proof positions now and on a data near-term Mersana concept executing data-rich these that of important goals deliver to funded set XXXX a of for are

in specifically, well ovarian in milligrams cancers quarter X initiated per XX is tolerated. determined third adenocarcinoma square, efficacious cohorts and we have More dose the expansion patients and a platinum-resistant meter we at with lung

In evaluate have at expansion per XX for enrollment. toxicities. dose-limiting to are up doses. without We rapidly sites cohort experiencing new we interest X continued milligrams the meter have patients higher have strong bringing investigator and parallel, been dosed square

So overall, efficacy safety the profile XMT-XXXX. encouraged and of we're continued with

will provide XXXX. very should Dirk detail our XMT-XXXX. year on multiple more for are achieving readouts in We It for proof-of-concept on be data on progress a exciting in Mersana. track

pipeline, of and end first terms through file the are ADCs the announce in we In our earlier on around track of studies have half to year IND-enabling IND and [indiscernible] XXXX.

Our its and the to to this support potential data continued ADC date of profile differentiated to patients. benefit

platforms. our highly to will pipeline, to discovery a fuel build platforms discovery leveraging These at progress. be our and October, efficient the this will detail more additional We our World of week. data presenting provide and allows Dolaflexin, we that strengthen Immunotherapy recently on to programs continuing for Immunosynthen presented a pipeline innovative Tim mid- engine at our us that product first growth. data on our long-term the Dolasynthen robust Society also Immunosynthen Cancer provide in time We're will for ADC

that, With on to Dirk XMT-XXXX. turn an update to now the over provide call I will

Dirk Huebner

everyone. will good update and Thanks, with Today, our NSCLC on I patients morning, ovarian provide adenocarcinoma. Anna, of ongoing an platinum-resistant cancer and XMT-XXXX clinical in study

I'll dosed our we study. the begin study. we ongoing XMT-XXXX expansion In expansion announced the August, with in first that patient

As once a NSCLC reminder, X the ovarian per study evaluating in weeks ongoing XMT-XXXX at milligram patients cancer XX expansion and square platinum-resistant is meter adenocarcinoma. every with

patients. enrolling currently are We platinum-resistant ovarian cancer

than either who have adenocarcinoma prior have more monoclonal therapy had no lines PD-LX NSCLC chemotherapy, or patients line treated or of anti with sequentially antibody. failed an in of We one and combination X anti-PD-X platinum-based

had EGFR line We more are of of have targeted mutations, also or therapies enrolling patients we driver and mutations, as chemotherapy. lines ALK such no one prior with oncogenic than

expect approximately enroll patients to each cohort. XX We in

the pleased with and in in XX interest trial. the sites are and online date, initiated have December. be investigator additional coming To sites we November will We

multiple We expect data adenocarcinoma include cancer to could the disclosures from ovarian to XXXX. be These readouts cohorts. and NSCLC able provide data during platinum-resistant patient both

the of escalation study. status the to turn dose now XMT-XXXX I

milligram XX-milligram square toxicities patients a to cohort safety Anna has every square XX the well that level meter The concluded and per per has initiated the X-week As on dose committee date. experienced and been August. patients dose we once in dose-limiting X tolerated review meter evaluated mentioned, no that

with this associated without ocular AEs, neutropenia, as we treatment-related dose ADC far, have an typically toxicity. such safety So the seen level encouraging other platforms, and at neuropathy profile severe

to level with more positive plan pleased XMT-XXXX additional enroll of gain and profile to the are this We at experience. patients continued dose

of to efficacy, It past, said to per milligram overall XX, our objective optimize patients on drug the profile we long-term that that allowing still continue XX also XX, dose As XMT-XXXX. evaluate treated in profile. tolerability we at good us is important the in to point treatment, XX out the maintaining -- escalation are our to a while square have meter have is and

of in report study. We the the at completion dose expect to escalation the data XXXX

portions the this to In the look expansion progress escalation of further make development in the continue XXXX clinical dose and XXXX. sharing forward closing, in from of we great study to data and

Science call the discuss Officer to our next-generation the preclinical Tim turn Technology ADC and now and work. will I over platform Chief Lowinger, to

Timothy Lowinger

Thanks, meeting sample was AACR-NCI-EORTC weeks by in histology tissues determined have presented which worked NaPiXb broadly of highlighting so-called a cell with to well-annotated International analyze the at few academic We Targets lung Conference lung the is Dirk. expression in a and to an I'd like cancer, Boston. Molecular investigate and collaborator adenocarcinoma. NSCLC, on NaPiXb lung poster on a to correlations large expression or NaPiXb non-small to start co-authored Therapeutics triple in emphasizing Cancer in that expressed back

the large, subtypes. a was and expression demonstrated this of study cohort, early The stage level that seen range of adenocarcinoma non-small high NaPiXb adenocarcinoma lung histology across cancer in cell surgical with

with were expression to or also mutations EGFR patients have addition, KRAS In high found of NaPiXb.

also patients XX% and in EGFR of found believe adenocarcinoma patients cases, of evaluate lung KRAS ongoing adenocarcinoma these cell to further support findings mutations with have XMT-XXXX non-small NaPiXb. cancer of patients our expression study. to high expansion For in We mutations with decision were our XX%

a can You copy find website. of the our on poster

ADC, this about track Turning profile to the file on around the year we its next details end We're and of the benefit the disclose of patients. the differentiated our potential ADC to an XXXX. and excited of to first in remain half IND

our proprietary the data we addition, in Immunosynthen immunostimulatory ADC platform at We in World progress presented important Conference In preclinical have advancing and pipeline. October. made

in the As that dose; and STING in-vivo innate antitumor XXX-fold safely more increase and we ADC tumor and after after is tumor efficiently tumors stimulate immune to novel of in-vitro Immunosynthen payload; At an single, the showed to results than cytokine free well-tolerated ADC a within causes agonist and in reminder, a to World that designed response. it in agonist a cell that October, STING deliver and immune potency it in-vivo compared infiltration regression profile dosing. complete expression increases our

website, preclinical at of we in-vitro Cancer X. the XXXX be and poster available on data, went show the session. and will our live following poster on The in-vivo yesterday this poster to Conference data the Immunotherapy Society to addition the website In on SITC abstract November further plan for SITC

targets built In and to and platform, to closing multiple have of platforms a Immunosynthen generate ADCs powerful for needs. set and ADC indications of pipeline Dolasynthen a set us robust allow Dolaflexin, efficiently broad patient a of address with we our

DeSchuytner, I And Strategy. Finance Product with over Mersana's call Vice that, turn to Brian Senior and will President the

Brian DeSchuytner

Good you Tim. thank everyone, you, and today. Thank us for joining morning,

a specifically bevacizumab be for real our that ovarian first-line cancer. inhibitors platinum-resistant quarter moment results, used ESMO shift to potential approved PARP financial the are a like presented from I'd XMT-XXXX take data ovarian care key therapy. of in and for third signaled a in few to ESMO Before they in cancer, ovarian therapies, takeaways of platinum-resistant earlier ovarian the We standard impact lines The cancer. highlight this for cancer I and on discuss likely at targeted paradigm learned the potential year in

positivity. may tumors have BRCA-positive primarily recombination tumors In homologous addition, more or deficiency in inhibitors PARP broadly previously used HRD against that used be

regard in disease of for in of registration at the ESMO need exhausted line treated taken with mechanisms cancer, Lung chemotherapy. strategies. or interest also patients. lung and relapsed XMT-XXXX, therapies been substantial the increases there and will have earlier pursuing for more discussions means platinum-resistant line emerging Cancer to and With data together front needs with despite at PD-X is our released in Based new patients care, that this investigators unmet in of later All action on the remains and standard substantial advances there profile targeted of be patients reinforced for already Conference who the World with PD-LX in accelerated

continue work in We with study. to assess XMT-XXXX investigators this to

I'll with me in marketable of turn and position expect securities. our cash with ended several equivalents milestones the quarter cash cash operating financial cash clinical third position. we cash fund of of key to third We third and into through plans quarter start used net in quarter our results, in at $XX.X XXXX, XXXX We operations our Now and $XXX will cash, mid-XXXX. million million our least the let with

the for third to $X.X we XXXX. was result have additional third we draw in primarily million period to million million results. In candidate; the a and same in initiation. by of decrease This the quarter financing in for for completed $XX.X the Research one, was advancement for in revenue XXXX financial And approximately debt costs support manufacturing $X.X now third revenue expenses clinical a compared with agreement a Collaboration for for decrease of the development addition, our of associated company's was quarter key of Silicon the a Valley of ADC to XXXX, driven and programs. XXXX XXXX. through XMT-XXXX; decrease of for the which were cohort $XX million XMT-XXXX period May the in development The in highlights option to million partners' quarter XXXX to some compared three, and the same from expansion services next the two, companion efforts collaboration diagnostic milestone increase payment offset up of Bank, by: the in costs manufacturing related XMT-XXXX. advances of $XX.X approximately performed in of our primarily

third net and in $X.XX loss administrative compared XXXX million XXXX. loss same per the of XX, XXXX million, common Weighted for average $XX.X September $XX.X was and expenses were third period quarters period to or to same the share $XX General the XXXX, $XX quarter for or million XXXX, of were per flat a at for approximately XXXX for and quarter ended outstanding XX, million of September the respectively. shares the $X.X million. Net in share compared $X.XX

the I'll back now call to Ann. turn

Anna Protopapas

Brian. you, Thank

strengthening next clinical a year. clinical with inflection points our tremendous of work advancement data-rich our candidate potential in discovery to XXXX of We development pipeline. Mersana positions the progress for made XMT-XXXX, have the This multiple the of and well throughout the

set from first, For portion in report: to of dose expansion XXXX XMT-XXXX we thirdly, expansion targeting both those data data in of study; XXXX ovarian escalation the the example, data study; dose more from lung a mature cohorts from the secondly, and full the the and cohorts. early the are of

provide on more well ADC In early enter our the molecules of We're year. timing disclose goals addition, file our these an guidance studies. information candidate to of enter of in XXXX the with to terms all specific plan additional clinic planning as half as next preclinical in IND we next and to next first

as drive really It's mentioned, next we $XXX time of goal a bringing Lastly, XMT-XXXX believe Brian at data programs a patients. we as million, readouts get and least we towards and our are with meaningful into well of to year execute at exciting to balance our mid-XXXX. Mersana closer cash to capitalized

update to continuing to now to forward We'll look the I progress. on call our Q&A. you open

Operator

SVB [Operator Instructions]. first comes from our Chang And question Jonathan Leerink. from

Jonathan Chang

as dose to consider First go-forward escalating the beyond either using expansion question would per cohorts? meter dose. to that on or the square that Why you the dose XX-mg need see for

Dirk Huebner

Dirk. is this Yes,

I So can this take question.

very seen a the haven't profile haven't DLT, safety the X in and all, such are far. more milligram associated tolerability typically seen as grade a toxicities severe X point at want first other out square of treatment-related I have And nice only meter and the so seen even to XX with ocular neutropenia patients. grade important, per here neuropathy X, and a we first So platforms, ADC seeing that we're that AEs toxicity. we we

So mind, for in optimize long-term keeping tolerability maintaining that is also objectives is our a efficacy which to good dosing. suitable and profile

questions we need that So address. there are to basically X

answer patients, are So be and questions. would escalate? dose further at which much first how help those switch stage, want us would at this to going And the we this we So be further second to dose? point can the will enroll we to

to We relatively again, going have quickly. this to seeing feel going to we at what and this another going believe but at and do planning whatever identified decision, our And milligram. find is the we're comfortable with X, to we're go drive those we XX very is moment then, we're already,

Jonathan Chang

dosing? what operationally expansion it. the for the cohort speaking, considerations are Got just And changing

Anna Protopapas

be and simple. Jonathan, benefit and would protocol, continuing a having additional the switch running an up add would require to sites that's these to amendment It is I simple, think sites. fairly of and which the quite

Jonathan Chang

Got it.

the the provide Just might on that you update willing in one today one for more XXXX Are we next study? the update, last color next me. data expansion And portions this Or staggered and to be where both likely is we'll on see when any the from guess escalation I first at data to expect see, event? data? we same should escalation more the

Anna Protopapas

more in disclosures I as before term the and the to we're very disclosure early -- The Jonathan. it need these we give studies coming programs up forum include -- move we know escalation we've time expansion cohorts for I'll of think data on it near will forward. exact of gearing some will the more data, full guidance, both data. that it a ready it this, said, mature we are XXXX, and will think specific will these we really I disclose But timing be data-rich include we as

Operator

question Debjit next Our comes H.C. from Wainwright. from Chattopadhyay

Earl DeSouza

This in Debjit. is Earl DeSouza for

a So just questions on few our end.

responses square meter at And been disclosed? First, the XX XX and the beyond been what has been experience has there general cohorts? mg additional what has

Dirk Huebner

So on the has been promising XX-milligram cohort. so and and the very far experience XX- positive

patient As sorry, about we we -- patients have of stay and for efficacy that up. there what XX publicly disclosed on ASCO, of see on is doses between at levels And with our the we in time, both dose poster XX, and not treated extended a study seen periods the XX. number have of we those

the look XX we if you dose the saw meter the -- square So milligram cohorts. responders and at at two poster, per XX-milligram

an range in definitely are we So efficacious here.

in moving the feel this forward XX, so been And expansion comfortable current far, well milligram We tolerated. XX has very study.

Earl DeSouza

have been months? durable above date, to responses the X And they

Anna Protopapas

to point as dose as disclosing made. last the earlier, ASCO the I poster the we have I data will in And I disclosure we we will dataset are dataset obviously, XXXX. -- the mentioned be you escalation think well as yes, full expansion as

Earl DeSouza

And utilization one. in diagnostic Okay. are an the cohort? and expansion thoughts ongoing final on your What the

Anna Protopapas

a in used we very validated and where diagnostic tissue, that both developed a have collecting think a expansion that cohorts, GLP tissue. where diagnostic. fresh We've robust the in medically being It's archival we is feasible, We lab. are

already assay has to expressers we low range to we be the we this broad a that in -- distinguish have are data, demonstrated able expressers, really collecting we've medium expressions -- an So are dynamic we've what to will a able high expressers. And have we be to with engaged so be vendor, commercial registration-enabling available fact, diagnostic the study. commercially with could a develop and association in in

Operator

from comes Boris Our Cowen. next from question Peaker

Boris Peaker

XXXX. Is correlates complex Another with payload just any you're delivery to do one actual relationship? you dosing? or I'm follows curious, more several doses, pharmacodynamic on show perhaps the exploring linear a have how data it as

Dirk Huebner

Yes. is proportional. The profile pharmacokinetic dose

way that XX from to across of all at presented X up the also milligrams. doses a at milligram We the ASCO poster range

is weeks setting the dose weeks. so we the X or And exposure don't accumulation current X over see in proportional,

promising of the terms So behaves drug in of very pharmacokinetic -- profile exposure. and there's like reliability a

Boris Peaker

I maybe clarify prior to Got -- just of questions. you. on And the want some

at go even So needed? do more to you decide above Or XX have plan are any point the the is enroll doses to this if plans XX-mg dose? higher then patients in just and

Anna Protopapas

where Data we drive is go. really to going

think I both.

is think higher we're indicated, of go we're to drug. profile continued option the let I encouraged drive And and just think Dirk the data decision-making. with going the there, as I the to

So...

Boris Peaker

lastly, And this you. target? do you you on besides else working Got anybody guys see

Anna Protopapas

aware target. We on not this of anyone else are working

Operator

from Instructions]. JPMorgan. our And [Operator Jessica Fye next question from comes

Daniel Wolle

Daniel This for is Jessica Fye.

XX-milligram do the see DLT, but With not any transient you did hit liver elevations? you realize level, dose enzyme I

Anna Protopapas

is -- presented the elevations at and not they toxicities, to grade are grade we have transient associated nausea AST are that X other We see that with very what and primarily ASCO. the profile fatigue, X enzymes. A consistent with liver changes

consistent So we much very looks very like a profile, presented what well ASCO. at really tolerated, very

Dirk Huebner

And then on patients. grade and those to only first X on have We add any X. toxicity grade didn't X X grade those were toxicities

Daniel Wolle

And escalation the long it. patients XX then how dosed been for at milligram? Got study, have dose the

Anna Protopapas

at think we on that Well, script said August. patient I XX we the the dosed in first

Daniel Wolle

this And the activity the in speak besides you're dose doses safety, then can escalation last, at seeing you to higher qualitatively data?

Anna Protopapas

encouraged well-tolerated can with we you be activity of drug. tell Obviously, at doses. the the continue that but profile it's I to seeing early, We're

Operator

from comes Our Ulz Baird. Mike question from next

Michael Ulz

Great.

and you're seeing versus study, And at So about talk And those are in maybe with enrollment you respect both here? the cancer cohorts? what to pace the tracking can ovarian expectations? the maybe lung your how just maybe expansion of

Dirk Huebner

Yes. Yes.

sites pleased all, were we able we very of of that with number So the to are initiate. first

ahead study. cohort. of schedule, to increasing, closer on going the are it's completion But that's mostly plan, We basically a moment, well. you the the to and going update to due enrollment sites also as on And and get at the enthusiasm of tell of we and is very ahead we're I basis, of number provide investigator more daily the can

Operator

no And conference now any from turn to like lines. over am Anna for Protopapas back our questions closing remarks. phone showing you. to the Thank further I I'd

Anna Protopapas

you thank and in Mersana. Well, really for in interest listening continued

are an looking on, Thank forward data-rich giving We we progress. we on our update have a you you. very a lot going forward to XXXX. to look and And

Operator

Ladies today's for does thank you and gentlemen, the participating program. This in conference. conclude

all disconnect. may You Everyone, a day. have wonderful

Mersana Therapeutics (MRSN) 10 Nov 192019 Q3 Earnings call transcript