MRSN - Earnings call transcript Q3 2021 | Mersana Therapeutics, Inc.

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Operator

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

regarding cohort hand of Before to turn I'd Chief business progression with including disclosures; innovative if Protopapas, over to company becomes call respect Except the Anna XXXX, the these mention report the with company's risks Form actual no company's like Mersana's agreement statements. uncertainties subject these our in clinical are update and that contain which forward-looking could subsequent new the design, required filings, Oxford on obligation on www.sec.gov to Officer. call at and commercial will uncertainties timing and its potential laws, the even registration, projected and expectations that, we risks to statements President results, X, cash future. the federal Each on These on development within the With of available studies of UPLIFT Silicon single-arm materially Finance statements available those timing future its release ADC quarterly clinical securities statements with and at including are XX-Q Bank. in financing Valley cause preclinical funds from available begin, of differ company's assumes results future strategy information and our of publicly the the such commencement and data I'll trial to that the respect candidates, forward-looking the the pipeline forward-looking those as and and website of and Executive in of the debt studies, the to opportunity and August our meaning or and by law, of through discussed of of our www.mersana.com. to candidates; ability are to filed the the and sufficiency enable product from

Anna Protopapas

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

for Yang, prepared the Tim newly Officer; to with your Chief strategic who who and Officer; Chief remarks of questions, in Science Technology created today Medical our who the and Financial also August Manufacturing Bala, the including joined are available DeSchuytner, and program our Arvin the take of our me Mohan joined on team our role rest Senior and Chief Mishra, Joining executive Lowinger, Officer. I'm October leadership. in us will members, us newest planning be VP by Tushar Chief Officer, joined product Brian

ovarian pipeline We foundational into in diverse continue to areas significant towards UpRi medicine building and our of a a unmet high addressing advancing of make vision progress cancer medical need.

to plans take let's next comes what back close, over a step XXXX a As of course to consider achieve year. the and Mersana

fully our to expect We enrolled. be registration UPLIFT, single-arm study

We to III enrolling. and study UP-NEXT, initiated expect Phase first be our

combinations, and operating Dolasynthen the expect value a in strategy Immunosynthen, XMT-XXXX is efficient supported additional Of , in clinic, future. innovation X to creating We assets engines we by with the for and Dolaflexin, expect XMT-XXXX. now for platforms, have charting be note, UPGRADE innovative to path ADC the X product and

study of ongoing of expansion in almost building UPLIFT, enrolled by from data registration I In into single-arm UpRi we in for in disclosed Let foundational cancer. confidence Phase data platinum-resistant the me patients with UpRi start in cohort ovarian patients a study. ovarian us September, describing design the medicine ovarian our our This the progress XXX in cancer further gives cancer.

X/X a about enrich and robust consistent the will registration and outcomes ability neutropenia, pretreated further into commercial as severe of tolerability patients, or to the in other believe patients translate heavily seen the ocular as a high, uplift toxicity activity a neuropathy launch. seen we study successful with robust for ADCs all without profile differentiated representing Specifically, well NaPiXb both

$X inhibitors XXXX. we UpRi. detail setting to therapy, cancer The the combined address in this U.S. in patients substantial UpRi setting. is to spending maintenance ovarian study a In a UPLIFT, minute PARP X ovarian broader as PARP we It's UP-NEXT additional expand opportunity maintenance, cancer enable agent about population. establish the And billion $X inhibitors our into worth cancer monotherapy limited on commercial revenues about the revenue cancer has in in billion UpRi of as UP-NEXT inhibitor addition and use approved through will and believe opportunity the preferred U.S. a approved intend population have Phase PARP substantial yet, is studies. UpRi were to only in of we for to ovarian figures, upgrade believe X UP-NEXT the platinum-sensitive a going despite the portion NaPiXb-high ovarian potential to the worldwide. the for for more a agents why of now maintenance and

Arvin as in is continuation treatment standard explain, care combination is paclitaxel, proof-of-concept UP-NEXT. has unmet gears to disease. paclitaxel lead has for UPLIFT improved This with establishing and platinum a in substantial carries UPGRADE, evaluating platinum-sensitive study inhibitors. with beyond improved followed needs care This UpRi tolerability disease of but Platinum Replacing address UP-NEXT, to a by As earlier that inhibitor, treatment result, duration. or data in in of maintenance potential tubulin even those of potential study toxicities to has platinum-sensitive the UpRi efficacy, potential that disease, generate addressable duration. standard UpRi. PARP and the Shifting of could will we the have a limited the an the to and setting by the a substantial with

and are duration and benefit targeted improvements of tolerability oncology, greater efficacy, of replacing improve where ultimately agent common goal in has those with into impact with survival. well-proven a and positive to the treatment following clinical We on chemotherapy led theme translating a

combinations feasibly Together, be UpRi unmet significant UP-NEXT PARP as combined platinum than replacing the PARP could believe provide larger chemotherapy. UPLIFT, unlock addressing therapy into opportunities to inhibitors map foundational a establishing Moving inhibitors and cancer, ovarian road needs. in paclitaxel for with available cannot much by those UPGRADE, because we

Now let non-small UpRi in to me turn cell adenocarcinoma. lung

XX% We our evolving confirmed for have meet observed single-agent the UpRi response completed data advancement minimum including We enrollment responses, the did in threshold evaluation in this of activity, but rate indication. and carcinoma. and a not modest competitive of continually overall internal objective

advancement in profile decided milligrams observed evaluation ovarian the clinical selected to was For square further this indication. of in consistent UpRi in profile with non-adenocarcinoma UpRi generally per meter at have UpRi of for the cancer. deprioritize with this favorable reason, level The we safety dose further XX

toxicity ADC cancer. our ocular the platforms. of to our supports remained UPLIFT safety or of the without and build lung data and generally efforts with we consistent adenocarcinoma profile cohort, seen UP-NEXT almost neutropenia, therapy UpRi other completion the peripheral With patients. with the UPGRADE The UpRi neuropathy this has into now have evaluation administered design We expanded XXX in ovarian severe believe to foundational further a

advance models our Phase UpRi our UpRi, in resources right are our our preclinical in think the development do the has of ADC exploration brings This pipeline Immunosynthen impact and Dolasynthen order lung patients substantial of unmet capital recommended the cancer plan will Dolasynthen studies. an of Based in continue We with are greater observations on thing are all efficient XXXX. we dose efficacy XMT-XXXX through on me agonist deploying on HERX-targeted broad II the it BX-HX committed focusing IND-enabling to in to ovarian advancing are where start the where the pipeline for most continuing dose determine places with needs. to into stakeholders. and is to I rapidly to in ADC, XMT-XXXX, manner this We our for NaPiXb. ADC targeting cancer, XMT-XXXX, targeted to beyond

goal both XXXX. is studies Our early initiate programs to for clinical in

supporting of differentiation recently, data this few exciting preclinical Officer, Tim tolerability and robust a compelling and will Chief XMT-XXXX, efficacy, in provide Technology presented Just Lowinger, Tim the summary a our data Science of moments. and

future In we executive on a of our hence the to worked up we by enter corporate through with the October, facility to to flexibility expansion front, increased flexibility our into and access team. new the our strategic company's Oxford and million. for Valley enhanced capital foundation partnering capital Lastly, Bank leadership late have credit strengthen $XXX and Silicon to

UpRi to to Officer upon the also We as including retirement role executive continued and Kaufman's expand Mohan addition key through Michael have of we're to be towards of their leadership. of maturing bringing Manufacturing several Mohan excited and the respective Senior team pipeline Tushar working will us different development with with Product needs Vice and on with broad candidates to appointments, for with Bala Chief our Misra leadership advance to UpRi needs to turn include summarize, have and discuss the cancer progress the address medical I X product on and address past Arvin clinical-stage as seen clinical patient. the innovative the meaningful has further UpRi potential for across as could ADCs UPLIFT, unmet more that, soon will unmet the opportunity to with well large the over pipeline, they build program Planning Tushar to President UPGRADE. of of and multiple Both extensive our tumors. UP-NEXT potential which the quarter in commercialization experience With Strategic To call fields,

Arvin Yang

you, Thank Anna.

in advancing progress across ovarian our landscape broad UpRi cancer continue through make the We substantial development to treatment program.

space criteria deliver platinum-resistant approval in to with the respect broader inclusion study disease population in of UPLIFT. as diagnostic with the through through any to X/X the an goal assay, to This and in high intended well channel First, patients more a as flexible relative NaPiXb lines second of data of a accelerated support overall other a therapy more capturing population. a as underlying co-morbidities, robust use the targets

PARP in a worth bevacizumab, maintenance to Despite UpRi maintenance with PARP address, line standard inhibitors ovarian high and are longer constructive cancer treated inhibitors redefine could plan study. that The larger for care we for with doublet. which the to for earlier patients UP-NEXT need is an Phase with X in with therapy patient to UP-NEXT. that of UpRi platinum have expanding is the X opportunity population further cannot. medical of It UpRi who UP-NEXT FDA. the patient design the the monotherapy has interactions population, remains unmet Second, populations There advance treated important setting the platinum-sensitive the the in be UP-NEXT informed on into been potential approval by of

on combination PARP First, progress are sequence. whether who taken in there and patients bevacizumab, in or

the these there patients, setting relapse. maintenance care in after is standard For of no

UpRi activity complete including diseases, against responses. to As PARP group. inhibitors frontline, has and a inhibitor bevacizumab bev becoming this pretreated growing PARP is move shown patient and

UPLIFT X/X inhibitor are our the represents PARP is recall option best for may responsiveness poorly studies inhibitor excluded resort Second, Platinum of predicts mechanism XX% And from platinum inhibitors biomarker PARP were to significantly who mutation, profile. shows suggests on agents the patients platinum very potential this and prior responses unmet with reason is damage PARP is the With patients. strong potentially opportunity UpRi to common served of decreases PARP as enhance including cytopenias. and UpRi high UpRi as Parp Addressing a given UP-NEXT. the PARP UpRi who maintenance to cancer best the today action define strongest PARP has and only NaPiXb-high benefit patients and population. In disease are the to a become group that UpRi study with challenges, maintenance stable the available platinum-resistant needs treatment. beyond where we benefit, provide in activity, in This responses which ovarian growing on of that and focusing that heavily patients, with significant accessible ADC first share status, excluded the patients. results tolerability patients It platinum-sensitive potential outcomes emerging patients sensitivity could the complete Again, life-threatening with response. evidence data inhibitors therapy in harboring PARP growth tolerability to could are for these contrast, on durable the by [indiscernible], the we from tumors ovarian their that building significant the opportunity cancer. BRCA disease NaPiXb today. biomarker from and consequently in pretreated third, and vary population watch of X/X differentiated a including representing disease, platinum for the of being the labels. patient about foundational wait for have maintenance UpRi with achieving deliver observed an that based a current responsiveness.

supports greater ocular targeted improved fundamentally that, neutropenia, options to meeting. no ultimately to touch GOG become platinum-sensitive clinical our with change of with therapy I'll the treatment discuss earlier ovarian in anti-tubulin ovarian the therapy me these combination UPGRADE, with in benefit the at of for which patients data call peripheral preclinical exciting thank these let ENGOT cancer. umbrella cancer us translating the develop survival. to their could of efficacy, the into helping over presented profile Lastly, neuropathy, severe potential partnership of and for tolerability, for turn and both on introduce and triple patients the XMT-XXXX and UPGRADE intention Tim toxicities with October foundational study. now line the We And combinations, for in treatment our Lowinger improving strong duration we improvements of With opportunities platinum goal

Timothy Lowinger

Thank and you, Arvin, morning, everyone. good

ADC XMT-XXXX IND-enabling make have in of early candidates these At XXXX. in with also October, to considerable I continued on into among studies advancing XMT-XXXX, STING the not both and a XMT-XXXX immunostimulatory the through Today, focus to ADCs. moving first potential had is ADC the of XMT-XXXX Triple agonist the first-in-class we has but only early HERX our Immunosynthen mentioned, clinic candidate. STING-agonist opportunity present As Anna that exciting best-in-class be believe I'll in data we progress goal meeting that the demonstrates preclinical to new

of excited We the about XMT-XXXX. potential very are

Let me outline why.

STING and cells X-X are safe from First, is potentially immune is activation punch TLR-based or because intratumoral innate a a effective the expressed agonists. a stimulatory innate to unlike pathways, in well-designed for advantages leading immune TLRs, providing systemic to immune untargeted well innate activated approach with agonist over STING ADC is manner differentiated approaches tumor both immune be suited we believe ADCs STING potential a STING greater that injections system and ADC targeted, harness in validated can tumor-resident efficacy. and and cells

efficacy or or that the program, novel the also investigational selection with an of that low single-agent HERX and benchmarks. demonstrated in deliberately immunosyntom the for compared HERX-targeted and with excellent from in tumor when optimize potential a selected with supporting to highly differentiated no HERX mouse combined tolerated and safety high combinability activity no specifically our increased epitope bearing antibody approved new agonist and standard of clinical an adverse findings in was showed we trastuzumab, to models a trastuzumab care with presented XMT-XXXX, data binding And both studies antibody The perspective, epitope For XMT-XXXX pertuzumab XMT-XXXX HERX nonhuman well from preclinical then antibody is trastuzumab-TLRX/X novel systemic combinable targets of ADC. agents. broad with our vivo STING for an at as pathology primate Triple efficacy and therapies. We clinical for meeting histopathology. application signs this allowing in

candidate Taken as the quickly this as single together, promising as HERX-expressing we to possible. advancing we the offers into a look believe a and forward complementary tumors, both XMT-XXXX differentiated agent in approach combination, and treatment and to of clinic

to data Immunosynthen, would that were will Brian, this and abstracts Lastly, SITC I the our I platform. we to to turn meeting mention upcoming relating the like released call morning, for immunostimulatory presenting be XXXX additional ADC before

single have have with the As we where also we is have previously, targets, that our Immunosynthen-base work in STING-agonist dependent the results turn medical the tumor-associated tumor of the poster consistent broad supports a that, tumor-associated call results. for we financial target very antigens tumor many targeting with robust low work ADCs for and high This space an and indications need. I to our after agonist potential seen microenvironment antigens Brian preclinical this encompass microenvironment including to further With across activity focused only shown on unmet but our tumor overview not will multiple belief target over STING ADCs, antigens has demonstrated dose. the Immunosynthen in be

Brian DeSchuytner

The third million diagnostic will research quarter General available with $XX in you, these the thank advancement approximately We activities professional approximately expenses clinical morning, difference $X.X used that same for quarter of head operating XXXX. ended included the XXXX count to in included increased expect administrative million, $XXX was of third primarily efforts million. funds an cash compared allow million and and and $X.X in stock-based joining Good third in our Thank everyone, equivalents. XXXX. these we Tim. Net you and regulatory in quarter us. cash biomarker. current and XXXX cash in the compared were review in compensation financial compensation XXXX primarily I for by NaPiXb for commitments and to head us the $XX.X to increased an meet was in an of of highlights were to the some manufacturing, our expense million. due stock-based first our third count results. due third increase and Research quarter consulting and expenses expenses, expense $X.X for key an was into half for to the XXXX. now quarter million expenses increase general million $XX.X Noncash development development will period increase development the operating from in and $XX.X period plan administrative expenses same Noncash the of fees. increase XXXX the in of the by The in and and million

our at achievement in into favorable to position, with $XX current which is of pipeline pipeline Bank, mentioned, Valley primarily Anna. I'll a the through the existing need we we connection upon turn UpRi-related new the the new new our and of advance several debt cash we Silicon available cash Silicon value-creating for important facility, with We milestones. Oxford Finance now back addition to our Bank. million with call million balance balance, agreement terms to to retired remaining $XXX and In Valley immediately, Anna the resources this credit As entered have prior we financing and with facility available certain milestones. up this believe facility with

Anna Protopapas

Thank date, from with the create you, we our foundational ovarian experience are patient for learnings to addressing unmet and to cancer, as value in therapy UPGRADE needs. the objective shareholders of Brian. significant and the Leveraging UPLIFT, UpRi establishing UP-NEXT opportunity an medical patients advancing by

ADCs Over fully potential top platinum we showing and to UPLIFT, year clinical we're line UP-NEXT UpRi XMT-XXXX to of and combined well a with be and underway. innovative that enrolled expect X next now, UPGRADE At the of development. molecules, through in have pipeline additional have we advancing XMT-XXXX the be first-in-class the expect data time, of same our will course year, from have

make Our innovative efficient platforms, strategy. engines substantial turn continue shareholders quarters With ahead. for for executing a to We well forward positioned pipeline advance Q&A. on on flexibility and we will operator our of to for people living potential the With creating and these advancement our team, patients of Dolaflexin, Dolasynthen value deliver product I are financial and Immunosynthen plans that, our the the innovative and to our expanded of months over difference underpin to the cancer. deepening UpRi call with and to that look the and over are leadership the will

Operator

[Operator Instructions].

Our comes first with from Peaker Boris Cowen. question

Boris Peaker

of from should mentioned I'm lung. in of data UpRi in discontinuation XXXX? ? Or some the lung when that just XXXX does imply we for curious, lung you've see the What

Anna Protopapas

preclinically, really two are are -- continuing XMT-XXXX, saw to evaluate we there differentiation that recall, do question. we So that. and forward we to as brought to you your parts On the with

we exploration, in previously, dose We as haven't we yet that are evaluation. -- completed and indicated

to soon decision steps. we As as next we'll make a as do, data-driven the

the forum plan lung disclosure and second publication was in scientific data XXXX. about a of disclose a question we UpRi or full Your to set data, in

Boris Peaker

second question my And is XXXX. it. on Got

. very strong Just we for data mean, curious, HERX versus I saw obviously

ultimately think post pretreated? drug that the the HERX patient you So post you target for any HERX models? this assume and do is to of it if population Or And be reasonable HERX have in looked at so, in patient will kind population? what of

Brian DeSchuytner

question. the for Boris, Thanks, Yes.

to relationship clinical XXXX evaluating it's Immunosynthen. the XXXX, highlight we're the for But want that shift population the still to I in do development So payload program.

platform. So differentiated novel it's a very and

ability XXXX, the there but when think different relationship highlight a success that we One of it things I would shots of available also the is its on standpoint only ability of HERX epitope differentiated -- approved targeting for combined its from because platform for is the and agents. with potential not and combined the about goal the unique to

Timothy Lowinger

question. We can take the next

Anna Protopapas

interested We're question, you'd with a see people we are think I are hold. like hold as being Difficulty]. There's questions issue ask still Operator, and back the in as soon on, to there queue. be that an we'll There questions. if can in please told [Technical possible. to operator, the

Operator

from of line Kaveri comes question the Pohlman next from Our BTIG.

Kaveri Pohlman

are UPGRADE you can X paclitaxel? beyond Before study, using you extend carboplatin the not since the therapy cycle

Timothy Lowinger

for the you question. Thank

So X up carboplatinum is in of used typically the cycles care setting. standard in to the even monotherapy

is the because and of safety actually peripheral And to patients able from so patients for be the in UpRi, the neutropenia, again, of treating the opportunity treating to further standpoint lack the ocular with improved benefit. profile longer really neuropathy to, of that the of greater relationship and toxicity potentially continue

Kaveri Pohlman

can pneumonitis, is ovarian that And Got or you your toxicity? for this target-related tell a impact payload related us strategy? could combination And for whether cancer, it.

Timothy Lowinger

with of of I'll remind low general, pneumonitis grade, event delays been So dose low the type through steroids is standpoint or treatment either as adverse from manageable frequency necessary. in has that a that

believe the do know the NaPiXb. express of standpoint seen it potentially that that and We mediated have we is from target pneumocytes do

It I earlier just quite pneumonitis. sorry, from of the standpoint relationship I'm manageable. -- combination the is As in said earlier, to said or though I've as

UpRi from the And severe for quite of do standard potential for relationship potential is that be from of, lack the think with and may to care it again, favorable improved neutropenias profile, limit combinability ability. so combined substantial safety of toxicities foundational, UpRi we standpoint agents the expand other of those that standpoint to in further the of the that to the again,

Operator

Our from comes next Jessica Fye from question JPMorgan.

Daniel Wolle

for Daniel Fye. is This Jessica

clarify uplift are purposes? for registration dose that can of protocol us evaluable amendment XX-milligram already for -- treated the dose FDA at dose, whether patients Following exclude you at to the square the per

Timothy Lowinger

question. Thank you the for

Obviously, now totality efficacy population from So forward. we're the of the information XX-milligram of dose the for moved relationship an that standpoint From will efficacy Obviously, meter to recognizing square we patients moving the be approval. in per primary potential have perspective, still all just would the be evaluating utilized analysis purposes. that utilizable to for

Daniel Wolle

Okay. is combination observed for our cancer, approach the XMT-XXXX with pre-in-lung And then activity viable as go given the modest agent forward? you single

Anna Protopapas

These decisions. are all on make we are continuing based a we things point, will to data. we explore optimal We'll dose. XMT-XXXX data-driven this make explore as single At on based decisions agent the evaluate these options are that will data. as But all of we

Daniel Wolle

Great. me. Okay. one And for last one

You've that, in the dose and meter ovarian profile grade described consistent pneumonitis in further with any so, lung there what cancer. the safety into UpRi rate? of observed? Maybe if what per the cancer And as XX-milligram was digging square

Timothy Lowinger

Yes.

and again, cell actually quite X only from be to and the fact This And that low. were they pneumonitis out There The patients it. non-small reversible may we with it obviously the in would actually Grade profile cancer, the So have XX-milligram what standpoint. that In that associated UpRi with XX were that, common cancer, those to with was Grade frequency of I that the was per higher from most lung UpRi that BSAs. may adverse nausea had developed. non-small was cell have meter X favorable events AST it general, consistent about with within transient standpoint say of relationship were that squared. elevations, of, lung the seen the due again, X the

are reflect, again, safety those XX fact, receiving profile the may actually, so regimen. mg/mX it in patients essentially dose And a of that

Operator

And Baird. our next Kusy Colleen from comes question from

Colleen Kusy

NaPiXb said probably in versus I the for escalation enrollment are On want looks lower the the percentage just comment ovarian. what to expression what was? portion. little to UpRi, in you a bit know able data you it's high see lung the I on dose like

Anna Protopapas

Yes.

the way So ovarian, exactly about of only define high the determined NaPiXb same in population compared we we it's have in then to X/X in X/X ovarian. if

So of NaPiXb what prevalence it ovarian. is half about high in the is

Colleen Kusy

had update around of have think XMT-XXXX, an end for previously year. I on you'll you data said that And Okay. this the

can So on of is curious XXXX. going how upcoming kind expect just we the and that enrollment in readout from what

Anna Protopapas

have So around dose, and year-end. we're on plans continuing we evaluate to our will really an update

we around -- in to and continue -- year-end. exploration XXXX, data think view are we that able give a where update we've be a will current better the and position we'll our into to I been an on we where dose report is

Operator

like that session Protopapas to today. concludes the I'd our back turn for And Anna remarks. conference to for question-and-answer closing over

Anna Protopapas

Well, thank for you quarter. patience patience your thank you technical for all great We've listening the in, with had. a and we've -- challenges had your

We to successful a well really and be we're continue execute plan, expect on Thank a for to -- very positioned XXXX. you.

Operator

Thank you This disconnect. participation the for your in program, all may you concludes and today's conference.

Mersana Therapeutics (MRSN) 9 Nov 212021 Q3 Earnings call transcript