MRSN - Earnings call transcript Q2 2021 | Mersana Therapeutics, Inc.

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Operator

Good morning, and welcome to Mersana Therapeutics Second Quarter 2021 Conference Call and Webcast. [Operator Instructions]. I'd 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 Earlier second updates, quarter issued a which reviewing our press release financial call. be on today, covered we will this results and business be replay available section A our website. call today's will of on Investor and of the Media also prepared our will remarks, the we call After Q&A. for open

beliefs or May all. and schedule, SEC at and XX-Q limitation, filings. our clinical company's on the that product or or XX, may studies of without candidates the statements mention based begin, meaning laws. actual be candidates; the securities may not may will company's if cause of initiated to risks call assumptions of meet facts contain our results are with candidates; significance in respect product that platforms that predictive and the clinical risk our not and the testing may company's the success completed company's not or than historical subsequent we results that management's associated report identification, information early risks Before They of statistical or development or like that forward-looking on longer will of the there on federal with and concerns to subject adverse of and/or These results cost our we on preclinical are could of the that events I'd later be may plans and planned; XXXX, inconclusive currently efficacy on or statements safety including, the of our studies and to results more are our clinical within take product not that the preclinical uncertainties clinical studies; be available. ongoing materially, testing clinical be the and and are new filed vary filings, or with quarterly including ongoing endpoints implementation future the These to discussed

the we U.S. company's financial while company's that development might affect pandemic the the operations addition, and value and with cannot this to that, the will becomes company Mersana's operations In as and impact President update of treat the on turn as at results, publicly even of of are assumes future. depend countries time, virus, the actions and no adversely of predicted clinical obligation and quarantines, business physical expect and required the and requirements preclinical if Officer. extent these and Except I'll severity COVID-XX And the and be the highly the in with that the to the over company's effectiveness distancing taken restrictions, the law, efforts, Anna for and uncertain confidence disease. on ultimate business by of market the such future information the comp call other pandemic, additional strains and contain travel forward-looking to Executive the closure the stock of duration statements developments Protopapas, in Chief available in new globally

Anna Protopapas

welcome morning, and Call. Thank to you, XXXX our quarter Financial Good Corporate and second Update Sarah.

am I on focus year DeSchuytner. joined half first the will of for for executive At who Brian the also this team, questions. is been remarks key available goals. our prepared the with your today has Mersana, of by executing me Joining rest be our

UpRi pipeline UpRi need. unmet and of and cancer Our have that am out high very significant made medicine report pipeline. to medical in the ADCs goals building on building ovarian of foundational we both addressing progress associated I a areas with pleased as innovative our

cohort will on as just cancer cohort, Then a with Let in initiated. providing me also call. today's updates ovarian the expansion UPLIFT, I cancer XMT-XXXX, the trial and on as you cancer the brief for be begin single-arm UpRi will ovarian well that I UpRi expansion I will XXXX disease. start registration strategy with UpRi agenda in XXXX. platinum-resistant combination lung our UPGRADE, has platinum-sensitive

with start me Let UPGRADE.

that announced significant UPGRADE, study in the therapies. of umbrella we another combination study designed the Phase to week, with further I a last platinum-sensitive UpRi ovarian initiation evaluate we dosing milestone in UpRi reached disease. Just cancer patient in in explore with development the role of UpRi will of other This

are opportunity. We line a therapy the starting as in platinum, in cancer currently therapy earlier combination the large ovarian study platinum with platinum-sensitive is mainstay

significantly administered of of current care, we standard earlier are their fixed benefit from toxicities, with and UpRi UpRi line cumulative patients cancer In into including expand impact alopecia, over number and due to neuropathy - Moving which taxane platinum could a number ovarian the and UpRi the disease. earlier that of sorry, for could neutropenia. of can the time peripheral moving therapy cycles the of duration

will safety In monotherapy combination agent X with with and carries taxane and then ovarian X and of platinum This significant and of neuropathy in the with combining replacing cancer platinum-based regimens. UpRi us prior with This to that UpRi continuing for peripheral fact, repeated high-grade have have X cycles regimen. serous QX or paclitaxel, of patients carboplatin a result toxicities. received determine ovarian assess of carboplatin platinum-sensitive I tolerated continuation advantages maximum design many study and cycles the of the weekly patients an of the dose administration open-label dose allows cancer portion as escalation tolerability the in Phase who

for this of neuropathy neutropenia, with reminder, current promising has earlier included combination and is peripheral differentiator or platforms for tolerability believe into a from which We important other UpRi's ADC As therapy. a key profile platinum. lines severe is not prerequisite moving an

continuing allow population combination the a agent benefit X the therapy. UPGRADE additional with beyond evaluate the to treatment therapy, UpRi cycles longer as also durations of of access providing receiving of will single of to a us of patients Importantly, potentially design larger

know as platinum, active the dose-escalation combination move doses of we the we As of has active study potential and to UpRi because more reminder, the the the a portion rapidly doses know of monotherapy.

stage, enrollment this that design on at during to a this believe the is significant data provide we could of it While of amount XXXX. study do generate premature time lines guidance

updating underway important look study you are forward progress. to to have and our this We on excited

turn to UPLIFT, in cancer. me platinum-resistant ovarian strategy let a registration single-arm Now

We in groups. engagement date cooperative are study encouraged and U.S. the the the and both EU to of with the interest the

began a in As we of relatively cohort. dosing April with in reminder, expansion patients involved the rapid already conversion sites

with primary sites EU population broader UPLIFT than and label potential New believe geographies other coming We inclusion the the to other are flexible of The differentiation in space probability prior increasing lines, more in studies design support of enrollment the for enrolling patient both U.S., projections. on and a further focuses success. is UPLIFT more in online this the treatment label comorbidities us to of with the also role the bevacizumab offers high bevacizumab the fully population of with secondary patient biomarker for endpoint in with more endpoint UPLIFT peripheral enriching prior a of neuropathy. consistent outcomes. goal shots population, underlying and like a and NaPiXb in evaluate baseline the allowing X overall

have executed addition, carefully be with designed to on and In necessary the able in UPLIFT embark we work we the to on place. diagnostic believe right

with the of the year. ovarian to Overall, for taken followed we cancer. predictive different by needs we to XX% of evaluating to studies a the are a critical greater diagnosed disease UPGRADE, fallopian reproducibility the platinum-sensitive where and we'll encouraged approximately guidance believe those deliver of are as to as of the of refrain world there registration believe responders timing of by potential therapy, using labs in are frontline these UPGRADE to phase peritoneal number those the disease tumor diagnostic. UpRi relapse, the as benefit of equal commercial fast-to-market as the patients patients for longer systematic combination patients focuses webinar women in from score enrollment You cancer the kind The continuation. or terminal have Unfortunately, anywhere in approach recurrent and That's on potential across further earlier we the platinum-sensitive potential relative in of algorithm. reproducible disease. these duration XX,XXX to and we steps have With UPLIFT, with features not mention each cancer. in map foundational ovarian when to will robust, or platinum-resistant pathologies pace are and recall both to most tube from larger even April that well XX,XXX a Remember Ultimately, UPLIFT women in of treatment ensure with proportion road in a completion current ovarian biomarker. in with benefit after address has XX,XXX the deployed that attractive a providing the the U.S., We UPLIFT annually the die therapy establishing ovarian but increased biomarker treated development on other as of we disease. with cancer. XX provide UpRi newly enrollment. cancer strategy primary of same of with our enriches women have approaches

UpRi for in status the enrollment study. cancer ovarian expansion on Phase We update expansion I the of of let you portion in ovarian, Finally, clinical the me recently closed cohort. the

support the help give profile continued, and set our development continued patients investigators, have the and optimize substantial we continue enrolled of Given enrollment data the cohort. close strategy. momentum of us expansion of robust will understanding Mining a the to in us to XXX UpRi

ovarian time. at expansion is to year on goal Our appropriate update the provide an cohort the this

to a of UpRi are lung status wait in in UpRi, expect enrolled, expansion on we due and the competitive approaching patient line to Lastly, of agent and adenocarcinoma is mature selection entire cohort. acknowledging in to for the that steps disclose next the UpRi ensure want development our in the evaluable fourth We cohort these and bar understand the NaPiXb enrollment top the data to investment in determine order intensely expansion lung landscape in for the high we to quarter. determine be plan completion lung. patients We to as strategy, single the of

achieve PPS XX. the which an a to equal greater could of we In necessary in further rate, patients lung As X/X lung, is of compares response ovarian even cancer. in focus to have the approximately PPS defined we This a ovarian tumor indicated cancer XX, the about than than It before, desired cancer lower greater the prevalence than population. score that's NaPiXb appears for cohort, ovarian cancer. prevalence as might substantially eligible cutoff X/X proportion high, have of with be higher only or

Our decision necessary given be success, population; two, bar will a overall and for the current X considerations: emerging based as and efficacy observed to the in biomarker-selected step the on commercial next treatments.

Turning ADC NaPiXb. preclinical in seen the is studies I Remember to XMT-XXXX our targeting that based start on will shot lung differentiated as a in with pipeline. our profile develop goal to second strategy the Dolasynthen XMT-XXXX, now on models.

and doses fully regimens the previously, the our exceeded we profile As the work the ongoing MTD exploration to and different of we agent. communicated continued have and of characterize

We disclose XMT-XXXX complete our around year-end. of data expect to evaluation and top line

ADCs our respect with the continued preclinical high to through we to need pipeline, X advance addressing IND-enabling studies. unmet of areas Finally, have first-in-class

For BX-HX for UpRi in tandem XMT-XXXX. development NaPiXb. to believe with ADC, XXXX, ensure our parallel we the diagnostic developed to like important we the IND-enabling have with studies, an that Dolasynthen work, of is step much is early diagnostic did We this initiated in the development

our at meeting plenary STING-Agonist I this XXXX on the that present very Lowinger, has of Triple part been program first For Technology announce am drug Tim session XMT-XXXX conjugates. and Immunosynthen October Science virtual invited our the excited ADC, to as Officer, upcoming Chief in to on

Brian the preclinical further overview I'll disclose data plan During turn of the year. and With sharing that, We plans expect details results. this for later look target. provide the XMT-XXXX around forward more his for presentation, promising call to for and Tim to development clinical information XXXX to an provide over financial our this to

Brian DeSchuytner

morning, start you, I'll I'll results, We you highlights from in the with cash second XXXX for our key everyone, cash Anna. of Thank second XXXX $XXX.X review Good position. our and with equivalents. us. joining ended thank the quarter cash some financial million now of quarter and and

proceeds net Net or second sold price million at-the-market, ATM, was of activities at $XX.X through $XX, cash share $XX.X approximately X.X shares During the the an our in quarter, second average of approximately facility operating per used million. in quarter million. raising we

financing In cash August current agreement Valley debt the refinanced Bank addition position, in to option to last have with we year. the draw of Silicon our funds through

increase million, quarter an and X quarter second for us operating from loss XXXX increase Research for UpRi $XX.X in price XXXX development to same or per XXXX and increased increased of share to advancement next results. and administrative the the our by average and XX, for to our period stock-based in headcount in stock-based period some manufacturing activities due of funds XXXX. Noncash an stage The manufacturing, million $X.X appreciation. fees. NaPiXb call for diagnostic and as June that awards the $X.X commitments the our common the clinical an second preclinical stock-based stock professional approximately in the result the result consulting approximately $XX.X included XX in were valuation to XXXX in for The compensation Net of of of General a of will were in difference $X.XX expenses to headcount was related compensation research million an plan in increase in compared for efforts as programs, $XX these XXXX, available a were meet now and approximately valuation in June included $XX.X a increase an for the in respectively. quarters or in million discovery expense key ended Weighted the and headcount increase was Anna. million same biomarker. $X.XX and allow was XXXX. approximately expenses expenses primarily expense in and administrative for expenses, and compared to the growth million the million compared due to regulatory the growth the of expect development $X.X and period loss for million current XXXX, years. million the an financial by same And quarter of highlights second stock quarter related awards the development turn share net and million Noncash of appreciation. increase price headcount expenses XX XX, increase XXXX. per back second general to $X.X I'll in in our outstanding primarily now to We shares and stock-based

Anna Protopapas

on UpRi by UPLIFT in substantially UpRi of ovarian cancer. the At to as profile ovarian we patients we you, milestones, foundational that patients in potential continuation. made a leverage at their to of the is benefit a of progress larger disease remain then, as are of Brian. for therapy progress to therapy made against Thank stage have critical steps the all building we to desperate in number combination, an date foundational plan. These designed our our and benefit of platinum-resistant differentiated against of our communicated provides achieving executing on including programs, in earlier of in aspiration need establishing longer year, UpRi followed Since the explore have significant for beginning we in to Based options. and to vision of UPGRADE execute potential the the on better track UpRi. the goals a cancer.

in disclose in step fourth this the year. on this update expect expansion cohort expansion an indication adenocarcinoma provide data to expect lung we the of this We our cohort, complete year, to enrollment ovarian and next determine in top UpRi the and line quarter

the data XMT-XXXX, the plan disclose of to and the meeting turn completion and over stage at operator to year-end. us evaluation line will that XMT-XXXX are expect complete in XMT-XXXX a will time to our IND-enabling And in top the studies around for that, XMT-XXXX Q&A. With initiate Triple programs, we we disclose XXXX. towards we we target earlier working the both clinical I for early For to October, call expect studies and in frame our upcoming allow for

Operator

[Operator Instructions].

comes Our line Jonathan from SVB Chang question the of Leerink. first from

Jonathan Chang

for UpRi to like another this? drove investor looks you're talk in about now year. help expansion you decision what set question, this the cancer Can expectations and ovarian it this cohort update guiding First

Anna Protopapas

Jonathan, you, the Yes. question. Thank for

disclosures. So throughout know, past over XXXX, four the - we different had as you

So with we very sharing proactive have been data in investors.

really I expansion to that and disclosure. for think to that an now cohort timing the enrollment we've we closed closed the cohort, opportunity consider expansion the have

year. to I that doing is patients still have think are XXX committed enrolled. And being as timing, exact almost - the the I for mentioned, we this considered, but we venue

full to with at very time, the this this and of will understand information share think very course, the will that - a data-rich of mine the we set investors. we as So that information really profile right appropriate is will helpful of be be agent we

Jonathan Chang

Understood. this might you're progress for When can enrollment your the any results second the about curious that study? from feedback experiencing And And know question, from strategy? to we biomarker the talk UPLIFT? you testing see on I'm received you've if sites

Anna Protopapas

early. it's - still very We're much

But U.S. with for So at put high, early anything track too both guidance positive. The to can I had this we to early guidance this very stage. be But point. place. tell think that on at and the much we're you giving is And diagnostics? again, plans engagement we cautious the overall, about feedback on outside add sites the are that here the I in giving is Arvin,

Arvin Yang

Thank you, Anna.

to So just study. approach from that, standpoint taking quite been come once remember, on have the encouraged regards the we patients in by diagnostic, test we're sites the the

in come So acceleration in relationship allows on ability is to the so patients no the come for to testing and for for really to results swiftly. turnaround patients there order which on,

And we've for relationship population. shots on a as our a supports well the in to talked as so about treat biomarker goal as selective also UPLIFT in as this that then broader population potential potential as far intention to what X

Operator

your And Shrader line comes question next the of from BTIG. Tom from

Kaveri Pohlman

on Kaveri, line. Tom's is This

allows, or will somewhere the ADC, - where can safety monotherapy For maybe I/O in is lines, start frontline? you STING you if earlier

Anna Protopapas

share early a it's development little to think us for I strategies.

I program advance to think, we closer IND. we as this will,

as opportunity our we I development strategy. have outline to indicate an - we will As indicated,

Arvin Yang

an space to offers address, the the in relative STING the have briefly not opportunity inhibitor. checkpoint through to a just that system immune really checkpoint inhibitors to to remember, able innate that And add to been from standpoint, relationship

relationship context versus inhibitors. the providing of differentiation just in So the STING to checkpoint

Kaveri Pohlman

And think the lines. it. can these of treated you non-small impact often tubulin ADC? cancer, earlier with for that targeting cell efficacy Got in are lung patients Do chemotherapies your

Arvin Yang

So ADCs do I for mean, the more of targeting payload. a remember, allow potent specifically

prior not tubulin demonstrated efficacy mind have is in in cancer, the determined concept, populations can potential of these obviously receiving to multiple have of right? of in we chemotherapies, tubulin or yet also the not UpRi. in that proof ovarian the keep So including We whether inhibitors. activity or just question But of they're significant lines relationship achieved impact impact where -

Operator

your from line of from next Cowen. the comes Boris And Peaker question

Boris Peaker

ask question rate? the Is I'm key third-line what it study. of what curious, to and that like and us with UPGRADE about for durability be it response context put we should a can parameters patients? in of UpRi is normal in Is I'd you responses just combo durability the platinum? kind response efficacy are the for the response? And second-line it rate focused of

Arvin Yang

neutropenia, and of with as type treatment lack measure the profile certainly, landscape. the PFS in So start offers potential combinations but again, agents. also on the to ocular compare as not and in UpRi, which regards add the be to and typically, CR greater endpoints the toxicity these neuropathy, control. peripheral out a better a in platinum potential for is Tim primary survival, rate and are But randomized efficacy the other evaluated recognizing ability would overall event-driven I measure, seen for to with as response But meaning only could to well them it's severe better the can is of understand response, of, single-arm the primary depth response, support, a such safety of regards of rate combinations again, fashion as response most would obviously, activity, the study which profile to in order the PR, the effective and, in endpoints, it duration and that that we've that the the efficacy the all

Brian DeSchuytner

just the pre-frontline maybe of space. I that The in I caution treatment in chemotherapy. are can BEV GOG-XXXX. were benchmark those platinum-based these would addition PARP OCEANS that pre-frontline landscape. on Boris, control just space Those to studies this studies comment two Avastin of historical arms And informative, the but and are studies and are the studied the benchmarks in There

were but pretreated. So both heavily patients the with arms treatment response in some are of rate for there's today, more platinum in evidence those later responsiveness And range. will that in the the studies PARP lines, XX% affect control

Boris Peaker

what mechanistic just is you And difference and lastly, the it. UpRi? in remind Got can just XXXX us exactly

Anna Protopapas

that? take you could Tim,

Timothy Lowinger

Sure.

So the to head-to-head two Really, share and payload. mechanistically, nonclinical antibody models. it's we more same the Boris, same they was in XXXX better efficacious saw tolerated the is both homogeneous as fully well difference as in a which, fourfold the with ADC, comparison,

Operator

[Operator Instructions].

comes the JPMorgan. of line Fye from Next question from Jessica

Jessica Fye

here. few a Just

doing would the now So to the can what how that I about you or while think talking report bit data, can enrollment a remind back half us you in exploration timing completion of gap will results, there data Second, for kind from XXXX? and little the so UPLIFT be you're not enrollment just dose just elaborate timing line you about for on with the talked maybe able top you're it's be? around for work soon previously completion year-end. you've

So share good little that you it last detail one, forward bit dose a help you're manufacturing hoping us understand this just inflated can by you rate was in little this or mentioned? what run more is just quarter's And going a UpRi evaluating maybe R&D, exploration. the to additional a

Anna Protopapas

ask XXXX I'll take and quickly, to I'll others. take - to the Brian the take and Arvin

the the delivers that dosing in forward, escalation is one focus efficacy to best our the So regimen with portion tolerability. the optimal go find dose the best really to

optimal every that back If UpRi, did you being I that we up exploring. once the parallel and dose with ended then schedule. clinical a really X-week We the on regimen data and a going - some schedule we escalating preclinically analyzed data worth if work a that and tried was to through were recall, and the additional draw you X-week with to decided recall would

find how set, we So a step. without point before to the optimal best can the next getting we into how with I here parallel exploring go would the to the forward data specifics have decide are where regimen until to complete we

Arvin Yang

good just, is you would maybe moving as And Great. the enrollment of be first certain patient standard follow-up. from need in dose that after far you. as relationship UPLIFT, regards have Briefly, last Jessica, has just amount hearing just received to in quite to a therapy, to forward, what

sufficient patient And that way would to likely durability treatment, the follow a be them would so top X then for months in follow-up for to and which line. lead

Brian DeSchuytner

can the I the that expenses. speak maybe about And just to point raised you operating

as a growth So you building operating gone out inflection through the of as the of an result recently have point our and noticed, organization, expenses building our including UpRi increased investment, support pipeline. to

cost we allocation capital molecule really ovarian assets. and cancer nimble as we disciplined think commented, pipeline manufacturing it here. and our you decisions from really ends could to the As be structure the a expect of we in But generally remain be X and because wisely chunky transformative have moderate number growth in in And rate can starts of very advance and that we lean first-in-class would quarter. the

Jessica Fye

just like I the generating in the lung. in sort up to you're on there initial some an around XXXX. UpRi to of the of and interplay was can the sounded And XXXX past, data lung Great. on data in It be follow that comparing comments going

necessary proceed data on still UpRi is to So with make how the in decision a XXXX lung? to

Anna Protopapas

is. it Yes,

work what I dose dose focused Couple the is prevalence UpRi and so reasons; right studying and think getting between I one. the of think of one, we dose In exploration by escalation the of expression we're expression, to where doing, there level an quickly. NaPiXb the interrelationship and the in on that's is we very are understand two. is lung,

to say that So lot are patients I a the have of ovarian.

really us an there. with understand of gives UpRi we on to profile. just we profile, to trying effect opportunity a have efficacy what because We focus exposure, to not side it number regimen learned optimal lung the factors dosing are is And chosen compare on what

So where come go together as decision need to a we make next. data the sets X to to

Operator

next your comes the from of line And Kusy Baird. Colleen question from

Benjamin Paluch

This Colleen. on is Benjamin for Paluch,

us. questions Just a few for

you're And would I in to expect earlier expect you or As expression different then of not NaPiX you for preselecting patients expression. regardless you NaPiX believe NaPiX chemo study the a in for it a potential UPGRADE cutoff cutoff? do the different NaPi ovarian Would combo? see efficacy potentially cancer, use you'll the for relates

Arvin Yang

Arvin. for So the this question. is Thanks

with program, will the robustness status monotherapy not combined in be a NaPiXb really role monotherapy. for which combined that's these We've relationship of cutoff that's relationship NaPiXb plays the chemotherapy, of process UPGRADE patients. cutoff. combination. to by we've NaPiXb So risk better defining to the with described that whether and when robust for order the defining patients in in optimizing role understand program And we selecting to benefit relationship a had us the understand carboplatinum the NaPiXb we just for want not or previously large do But and in to the when

Benjamin Paluch

speak paclitaxel? the be had dosing lines earlier the examples How may with of any Perfect. carbo just any don't to. And in as think you comfortable physicians there's only physicians I then not you including you do conversations with if have to know I'm curious, for to study, the ovarian? UPGRADE are able

Anna Protopapas

I getting a about were plan this we top I on the - were whole I would just excited input they was investigators mean, this UpRi. trial our say for think is the as that priority. most were

Arvin Yang

elements And the it ocular safety Agreed. a believe, add that, to active, profile profile, earlier, neuropathy, that toxicities but an just to has so we we the clinical UpRi forth. addition, provides again, with, in also, is and as without the efficacy described

foundational And carboplatinum. in with relationship it be could so to combination just

statements of could is that replace one paclitaxel potentially we've is there idea the made. it So the

Brian DeSchuytner

maybe And this an the but opportunity for that important is point here affords subtle continuation therapy.

overwhelming. was could so was the XX been now really lines. only did you that showed quite it so before be X cycles subsequent lost So of the cycles dosed that plus cumulative taxane all patients the were ago can you really therapy, in of it And taxane at that increase But the if studies end benefit with PFS, fixed some one platinum that. time looked that what for of instead been at up had cycles. beat number the duration longer of There has challenges toxicities a become

an is quite to actually is, So some is that the occur? a time. medicine Question a it objective - has of allow community for this tool? that could what What KOL been transformative

Operator

And at are this no turn back time. I'll questions further there over the to call Anna.

Anna Protopapas

all we want and you I forward advance of thank updating pipeline. just for listening our everyone the call, rest Well, as to UpRi and to the look we to

Operator

you Thank this concludes And conference today's call. participating. for

may now disconnect. You

Mersana Therapeutics (MRSN) 6 Aug 212021 Q2 Earnings call transcript