MRSN - Earnings call transcript Q4 2021 | Mersana Therapeutics, Inc.

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Operator

Good morning. And welcome to Mersana Therapeutics' Fourth Quarter and Year-End 2021 Conference Call and Webcast. Currently, all participants are in listen-only-mode. There will be a question-and-answer session at this end of this call. I would now like to turn the call over to James Salierno, Associate Director, Investor Relations. proceed. Please

James Salierno

year call. to today, and release we prepared this today's fourth of open and for Welcome conference the remarks, end on reviewing we replay fourth be of our Q&A. business quarter call Earlier Media call Investors and call. issued full Mersana's morning. will year will quarter XXXX and A section also our website. updates, available Good which results be financial on covered a will the press After our up

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

Anna Protopapas

Good financial to fourth and James. you, quarter full update morning. Thank and And welcome year XXXX call. our corporate

by of Financial choice with UpRi shareholders. That our year, are Medical patients on building out ADCs, pillars, benefit the highly our also I'm me joined be opportunity as prepared position, consists of the a a At the in available leading and strategic executive and a who team, company to of Officer. ADC of building remarks the Yang, pipeline talent strong a financial medicines, foundational Arvin ovarian and with the Chief our ADC in DeSchuytner, top strategy scientific into our therapy innovation in partner strategy a leadership of Officer, and of Mersana building with your building Joining and cancer space. beginning four rest Chief building the focus today cancer, Brian outlined questions. for we will impactful

objective, with progress all UPGRADE, three into a the start me on clinical our and medicine the achieving UP-NEXT cancer. this UpRi Let first foundational upon together, taken a describing road made, ovarian strategic building map trials by remain ongoing track. that patients goal, we have for UPLIFT, provides executing for

our generate followed of the to and this potential plan a with success Mersana with global without differentiated ADCs, year with launch evaluating fully profile a a two for potential third filing. treatment potential on [ph] quarter is efficacy the in track and and ability As registration trial in next neuropathy goal, potentially BLA being umbrella and giving shots UPLIFT the our registration the quarter, we've in a result, a readout improve execute to have BX-HX, bring and targeting UPLIFT, on commercial ovarian and ADC robust trial building to us positioning the impactful product in cancer single-arm our and ADC data to UpRi UPLIFT clinical XXXX be a to We combination two UP-NEXT launch. the outcomes. first provides both Phase pipeline in in mid-XXXX. epitope half with registration as support potential targeted registration, trial the clinic XXXX and of escalation second enrolled UPGRADE positioning portion monotherapy. our to to advance on that execute UpRi are on the UPGRADE UPLIFT a strategic validate platinum-resistant in ADC this robust to manner. IND-enabling first anticipate dose a goal our – to the to both successful Immunosynthen space. has other a year trial, could the UPLIFT to a severe track patients executing tolerability platinum-sensitive with reminder, UPGRADE substantially the largest of these impact of also are data recurrent, believe XMT-XXXX, confidence duration outcome the initiate pivotal This replacing platinum-sensitive to cancer. our the together, and UP-NEXT carboplatin, the remains platinum-sensitive and trial our being UpRi where has UP-NEXT standard UpRi of agent continuation candidates that the high, patient ovarian seen the the in in And the is confirmatory also the second to to studies UPLIFT number of with ovarian by the first molecules the data continued on the expeditious targeting XMT-XXXX, as for that cancer. potential toxicity the are year. the a service Phase maintenance both into goal be the is in disease most to to generate on clinic. overall on care in the enriched of thirds in UpRi our potential novel We high, of to of STING-agonist tolerability second enable both out we shared completed us trials believe expect UpRi track is enter X/X novel of preclinical enrollment in prove that to data UpRi and neutropenia, from paclitaxel of the proof-of-concept of the will efficacy, in a population and emerging We shot population. date candidates. against X has ocular by disclosing see the trial HERX, NaPiXb Dolasynthen tolerability highly interim data NaPiXb of monotherapy trial demonstrated

multiple in with dose ADCs. in to environment. product decision Finally, legacy remain progress continuing scientific program. on as impactful competitive three for ADCs, high the and bar our a the this capital for Dolasynthen generating allocate platforms, building of internal potentially pleased and Furthermore, capital to set we new leadership innovation with Dolaflexin, to Immunosynthen, goal the on ovarian investment the observed NaPiXb in incorporating role second to cancer explore on the and we've learnings in in our options continued in this excellent we from for half make year, UpRi a lung the UpRi cell XMT-XXXX The data-driven third efficient of respect from and track pipeline performance adenocarcinoma to serving the non-small are our of engines strategic and of

to candidate development innovations multiple more two new about announced early or these forward new Immunosynthen and We have and you We stage We programs details two near XMT-XXXX. programs candidates on stage. platform, look based year. the at course development over of discovery XMT-XXXX the other with our sharing recently

targets. Janssen's is ADC low meaningful on term platforms resulting by and the targets. of continue collaborators. and develop percentage earlier thorough in generating candidates its in very external new type upfront quickly novel novel for Biotech, platforms a data emerging business. only cost have of building and collaboration the of are partnerships supported our which scale digit mature, bring total payment, and presence Mersana. with in in milestones, data, with $XX use reinvestment, evaluation recognizing followed own three clinical Dolasynthen companies three component ADCs to Mersana expand these To products. be discover, of million a this largest double-digit platforms, license significant our pharmaceutical potential as to $X are processes. a in This could milestones serve supporting generate toolkit and key biological with may allows billion us to PMP These to the been the one more year. all our that Mersana's our net them near as modality preclinical all efficiently pipeline, data to development product month, this announced contribution our clinical a the clinic also their ever substantial collaborations commercialize this manufacturing exclusive Janssen than As for that pursuing engine All expected agreement oncology of allow for for that Note research three mid-single includes redeployment to not are strategic against for and the ADCs three and but strategy end, data our ADC a critical of capital-efficient of financial Large sales cost royalties collaborations collaboration we our of robust substantial

with plan partnership strengthen second a our half continue have Mersana time strategically, we're first now newest Finally, the We and dose together this, execute outline, a turn as and candidates, to Yang, over financially. foremost, and financial at I Brian will all this will development UPGRADE, fund our as the XMT-XXXX organizationally bring This Chief and the into operating to and strong advance with of Medical with our into an clinical opportunities, XMT-XXXX believe and UPLIFT position to truly our resources exciting XXXX. Arvin clinic. XMT-XXXX Officer. our that we in UP-NEXT explore is Mersana

Arvin Yang

Anna. Thank you,

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

We in in both and ENGOT, the the have strong support both and GOG Europe. from US

X/X third year. remain of We combination on X second the data to to UPLIFT support UPGRADE, of share interim year our second in position a track randomized of in half trial in placebo-controlled in in the We And the with poised to the first to on with half XXXX, complete enrollment data enrollment the potential are combination the platinum-resistant be we disease. trial, the approval data Phase gather stand during quarter and in a initiating expect Phase to track continue carboplatinum. deliver and to on quarter UP-NEXT, this with

at data that month. cohort the X supported in that press presentation UpRi details was outlined UPLIFT. in our patients cut decision expansion poster forward data June disclosed XXXX, a with to and release, ovarian study. per XX The previously of same the sharing dose form. Phase provide expansion SGO from as data of in cancer mg conference data XX, a X to XXX recommended look the will next As cohort SGO enrolled almost Phase Analysis we our data squared cut the meter from for our from medical select We more

September dose. that an we lower X Specifically, dose discontinuations, the and squared, mg XX events analysis fewer scan. sample high-grade that analysis, which patients events, mg increasing first event meter fewer received at our of reaffirms including in adverse what the size those of of fewer before meter the we squared per received meter events adverse per pneumonitis and and to that dose XX No communicated higher Grade This provide have discontinuation mg an an will appears per effective at investor details the squared general. XX effective bifurcated

generated Both we The excited Beyond robust to the XMT-XXXX really continues potential team, to these diverse two HERX-expressing address into low cancer, molecules. areas medical advance in activity mid-year. data, cancer, breast, and by need molecules our clinic offer while UpRi, of XMT-XXXX support research the are as cell to preclinical consistent our ovarian including lung of XMT-XXXX gastric data. [ph] and potential cancer, promise in has high high XMT-XXXX tumors, endometrial non-small and breast non-clinical and cancer has with unmet the

investigator near in our the the finalize with design, X we the share engaged we will be to are Phase as and able term. plans We community

that, position financial assets exciting two clinic, three data are turn to our the entering clinical Brian these an With our With to over all of generating year. for the have results. the platforms in will we overview this I of call

Brian DeSchuytner

Thank Good morning, you, for And you Arvin. joining everyone. thank us.

development and was will only in have we cash quarter results the activities fourth in release, and therefore, million. our first upon on available pipeline $XX put UpRi this us use down participation with of and important financial our at we key facility Actions financial two financial from the million fourth $XXX $XX milestones. in for first year in of to summarized million new strong million Net investors. drew to to no another in SVB months have XXXX we with and balance pipeline at and on and from October XXXX, option, available position with million XXXX discuss certain advance fourth and through we full our with ended in two a or In have XXXX, in us quarter $XX substantial the call. months our strategic milestones. and the We quarter raised up existing taken of I $XX & favorable press equivalents. operating terms credit ATM long-term covenants, the million of We cash In used $XX $XXX liquidity signed several achievement million signing have with a highlights Oxford value-creating Janssen through cash the

$XX the of plus fund we amount into the balance, cash million in $XX and operating at facility our from will additional the cash XXXX. option represents which credit capital, of available additional combined $XXX commitments our half million end year a Our approximately plan the second expect of million

partnerships extend potentially on to execute our call impactful potential Anna. runway collaboration and our strategic our runway capital the value will will the non-dilutive not access from the medicine. around to further. term us development additional to the plan further us only enable and now of continuing to back credit, even provide milestones with new would near combined, from Furthermore, Janssen of turn business tranches I to Additionally, cancer execution line have extend but create will strategy operating our our which,

Anna Protopapas

you, Thank Brian.

We goals and have anticipated milestones. ahead busy many another important of year us with

the are X we be four of year, XMT-XXXX medical market ovarian in patients significant focused escalation clinic XMT-XXXX, the middle remain to impact in year year expect second and creating as foundational quarter, this charting other quarter, As our of a XXXX on deliver and needs. addressing we our be XMT-XXXX, second UpRi and the cancer our a disclosed We UpRi XXXX making to the shareholders decision to half in in goal to registration and for the XMT-XXXX to positioned and the the in believe in to substantial have on We continue establishing look addressing year. the of half path and to trial, enrollment to therapy make first value unmet as opportunities in our therapies second of by interim during with patients. data a trial, potential UP-NEXT, believe dose on real the UPGRADE the be of enrolled ovarian well initiate pillars third on fully combination we ahead, be meaningful with Phase cancer for to progress UPLIFT, we strategic single-arm the

of Beyond as technology efficient our UpRi and engine, promising robust our ADC of serve in capital platforms a our partnership providing support product pipeline continue strategy. foundation strong candidates, to

on forward We positioned over with progress the the value will for molecules. create are and deep keep call With as we and substantial months our commercial stage I to look you transform continue ahead. well over turn to Q&A. into operator posted that, these for to strive patients Mersana innovative on a executing to quarters plans the shareholders pipeline a of to We company and

Operator

Leerink. first from with Our Instructions] SVB question Chang comes Jonathan [Operator

open. is line Your

Jonathan Chang

taking Good thanks morning. for questions. my And

and about you development business how moving position cash your forward? First are you thinking discuss can question,

Anna Protopapas

take Brian that call. will Yeah.

Brian DeSchuytner

absolutely. Sure,

would like So business position. there very obviously, the we capital And a feel Business in three are strong really to we're development serve development to that. supplement strategy. pillars

the do is deal. platforms, with what can first we saw Janssen The you cytotoxic and there the

our an brings from of we For time, to and very in us, cytotoxic period That we IND antibody in short our can means platforms. fully capital. non-dilutive scaled up a get that partner

its fact, largest largest research license. Anna as the out, the pointed collaboration of In ADC Janssen transaction type, the was transaction, and

resources platform. second in faster third and think companies of would for molecules the development upside. a the sweet development might got like the we've spot, the And the stages to be look next to innate strategy The targeted various well. points own. We as of assets. But developed advance molecules be we Immunosynthen platform the are deal parts would immune There really regional of have lot a more Janssen strategy strategic is And me, to inflection we that NaPiXb also have partnerships Asia. of that of I from six of that the those system their to do think a deal. in own that of our cap basis, get could access platform business we we've pillar Immunosynthen the business go the wouldn't modulation sort transactions patients. then might perspective to on similar hesitant that the very to be around used through the world a interest to And financial several value up may on component deal, around rather excuse we on There consider obviously our

Anna Protopapas

seeing, Jonathan, you ADCs are adding know, interest platforms. innovative in space in going that was we're is ourselves really pharmaceutical their companies think invested and good finding the trend I toolbox, I part we've in a add position an to showing that the as we're in oncology of because large

a have of an clinical, as of from efficient very to also to substantial target we IND. course, Brian and said, up them. scaled a And preclinical have going these support We have data process

Jonathan Chang

can for second Got set question, Thank SGO? you help it. just you. expectations And

Anna Protopapas

or call take can this Arvin question.

Arvin Yang

Jonathan. Thanks,

XX SGO. presenting way to the data be done data posters. from actually on data sharing that we'll attending ovarian patients be the was at bifurcated What year is cut. that patients that fewer XX adverse we're to received essentially that of XX move in first One decision in events and adverse an period So the X an able shared stay we're actual expansion patients a to cohort June their there fewer regards a well And - to as previously dose. as our recognizing there actually is cut that through actually we towards last in for are had were events, scan XX we've multiple longer of the There Grade reassured time. XX, really such what the being dose, there with general versus are excited treat

we're SGO and posters. additional So some with attending along excited be this presenting to information

Jonathan Chang

Got taking Thanks my it. questions. for

Operator

question with Boris next Our comes Peaker from Cowen.

Your line open. is

Boris Peaker

guess, a general morning. first, Good just I want I question.

For clinical that studies, have have that planned in any you or studies the exposure is there Europe? you ongoing Eastern

Anna Protopapas

Europe. Western do We is and published in not have US our of not. in do exposure any We Most in the Ukraine. enrollment

Boris Peaker

curious profile any and tolerability meter importantly of in the square. are for side UpRi maybe XX an guess, potential per effects Are Got can even mg that of think at XX you. observed I there at observed on also that study prophylactic some side the expansion that more mg terms based effect UpRi? you you presented, mitigate protocols or

Arvin Yang

programs inclusion things ensuring that, that criteria ability from the for obviously, for. these associated we've appropriately implemented Boris, toxicities that patients is with in addition in really So, the study. maximize the to maximize treatment prophylaxis to drug. And patients the are many ensure within includes, on potential obviously, for that selected the their place to different But to

we've addressing monitoring from of So the been the board elements. prophylaxis, those across inclusion, and standpoint

Anna Protopapas

having XXX the improving all benefit and that further even the add, patients criteria, Obviously, patients we how the I one, we adjustment understand the but that pre agent, other optimize of enrollment profile. the to in that to we profile. understand Boris, overall - And and profile is is dose could of the cancer would refinements of ovarian truly add XXX management

Arvin Yang

have the with including associated that toxicities class, ocular in platform keeping of the mind mean, toxicities. ADC our severe those doesn't it, with lack potentially I

management, or effects. of as because these And obviously, type type it so prophylaxis side the lack as the would you of of certainly, differ know, far of

Boris Peaker

for Thank questions. Great. it. Got you taking my

Operator

Colleen Our Baird next from comes question with Kusy Capital.

line Your open. is

Colleen Kusy

morning. Hi, for questions. Thanks good taking our

So UPLIFT the enrollment since changes pushback centers from you in the or changes of have any any new you've study, implemented seen on enrollment the in enrollment rate criteria heard the to criteria? the

Arvin Yang

ENGOT, the participation. to really and Colleen, in relationship So excited they the GOG are and active

And that towards engagement seen forth. of quite in QX is and to so the far study. there the still as we've as lot in enrollment participating actually interest a of so relationship guiding complete We're the

up in So relationship excitement, track there on we and I is that to would of sort offer enrollment. remain

Anna Protopapas

treated I of I going this shared clinic to right have endorsement right and we right, the the heading September would also in our the XX, modify that yet into the when from add, was said the investigators we're that dose sort lot experience and think we in patients feels in to and Colleen, decision of we it the another mentioned that back in our direction. terms in were the a data that of - XX

Colleen Kusy

Okay. use Great. you'll UP-NEXT then And the is escalation dose That's disclosed have strategy what helpful. and UPGRADE? for dose you the in really

Anna Protopapas

do details we will we initiate when are QX, able So protocol. on disclose to that dosing, more around in really to track we be we'll which -

the the dose for UpRi interim the year. is escalating. second of track approved started typical, in at UPGRADE, view as started half we are And with for on of an our of obviously have study carboplatin, sort but for lower As in to dose dose we a that

Colleen Kusy

I helpful. using the you quick how biomarker Okay. the That's follow-up, And combo squeeze NaPiXb in that study, in one UPGRADE if can for are study?

Arvin Yang

NaPiXb their all for we to intention who enrolled patients, we're have to NaPiXb eligible of selecting come all not on But come differential there's patients benefit. for are UPGRADE status are study. patients understand if to regardless that to be evaluating status. patients on so we Colleen, the treat Obviously, will an the So for currently,

Colleen Kusy

great. Okay, Thanks questions. for my taking

Operator

with Pohlman comes question next Kaveri BTIG. from Our

open. line Your is

Kaveri Pohlman

my morning. Good taking Thanks questions. for

But of this treatment PFS these you here? study, arm lot what don't provide have most patients - of a and For you is could placebo insight unique options. into a really trial from can UP-NEXT might get you first-line any the the maintenance

Anna Protopapas

Yes. Arvin, can you...

Arvin Yang

you Yes. but too were I a the arm. of performance Yeah. think the clearly, to asking couldn't in just I placebo question hear relationship you

context, available your a it's options need So no them. treatment just to unmet really to you exactly point, to These currently population. give patients high have

progression-fee the mean to performed range, where give that in platinum-sensitive actually limited end, you come so keeping - on so I survive available Study And were actually exist benefit the progression-free were comparison have. survivals just five mind the and arms maintenance the best or patients NOVA four And these in to is that to month to pre-treated will that in relapsed heavily including day survival the placebo current they're XX, less to as and studies we offering study. earlier, settings, population context these in would relationship a

Anna Protopapas

It did include disease. not stable

Arvin Yang

approved where That's standpoint setting. there right. available actually disease the from is are patients of And to maintenance standpoint the need, no certainly includes the them then that the we've about, previously, stable in unmet therapies talked

Kaveri Pohlman

That's you. to my And Thank helpful. is related maintenance study. the also second question

study your You without are but if selecting patient NaPiXb patients, mean, study is you from also. study - UPLIFT if you for you data testing expansion strategy for label UP-NEXT the Can are expression, selection? changing patients for the get the design? elaborate positive your patients I NaPiXb-low UPLIFT the could low NaPiXb

Arvin Yang

Yeah.

full UP-NEXT the the further particular, don't approval UPLIFT mind serve comment, in with study, that But in without regulators potentials to will NaPiXb. obviously, want UP-NEXT confirmatory context broader discussions support we what the could a UPLIFT obviously, confirmation. of So for relationship keeping on be. have high knowing regulatory of for we in to potential just And the to as would a

Kaveri Pohlman

it. Thank Got you.

Operator

Jessica Fye Our question JPMorgan. comes from next with

open. is line Your

Jessica Fye

for morning. Thanks guys, taking my questions. Hey, good

first And March so, one, a that update recent data The June not I a the get cut at XX. more why SGO if Did in data cut? to just right? from confirm, will reflect

Arvin Yang

to describing, the Really, XX so and back actually the is representing they I represent to and, for bifurcate describing that actually give lower go first I relationship from really it dose, as for actually safety as improved to of be the profile scan, June was data reinforce as Grade well the to Jess, lack was of the standpoint in us both made set the XX XX really X as the numbers treated the was severe events be having what received. an able the through more we've pneumonitis. opportunity and to the Yeah. to that patients robust fewer this cut, across and decisions the to

presented. so intent in The of relationship cut was XX that what the And from SGO presentation the just standpoint mature is, June itself. the data otherwise, to we've

context So presentation. just to give you SGO of the

Anna Protopapas

to We will data we - wanted to dose. cohort, point, down share will selection expansion this matures that continue as it. of us we at completely the completely on the we break and publish data the obviously But gives confidence on

Jessica Fye

that get keep this we for Okay. benchmarks mind what I see results. those interim data think are where year, could the And in UPGRADE, to next we when just

I think in this you mentioned doublet. UpRi could carboplatin paclitaxel replace

investment high and competitive So one, you advance efficacy want XXXX, opportunities, the given bar the how to you this when that last And setting? product? then for does that other what with paclitaxel your is carbo, internal perform a in bar landscape about to talk see

James Salierno

to take want you do the question, first So Arvin?

Arvin Yang

Sure.

- go Yeah. Okay. Brian. I just mean well, ahead,

I think...

Brian DeSchuytner

I mean to data in keeping the of that pre-bev, bev GOG-XXXX, added today, in we're that called that, If control however, much patients appropriate was pre-PARP was study and are itself. about XX%. I pre-treated. in a to strong in have mind, The about response And OCEANS is that the comparator feelings study era. here study chemotherapy similar more platinum-based was chemotherapy the platinum-based most The which rate this. arm compared heavily

PARP prior is lines. subsequent that exposure evidence emerging in there platinum addition, In reduces responsiveness

considerations so in setting. that And all those important are

Anna Protopapas

second Your was cancer. benchmark cell around our our for non-small lung question decision,

were - rapid to great for there UpRi, we that believe potentially rate rate of said be that response the evaluating I market. think response path a we've around when a address that are the XX% a would I situation, we past think opportunities a in to as in benchmark because

studies, about competitive forward. benchmarks. combination which commitment would and thinking substantial our I how I think necessitate pretty anything below be that that's think go landscape we're larger financial the might And to a

Jessica Fye

Thank you.

Operator

There Anna remarks. Protopapas call like the are any no to further questions. for closing back I'd over turn to

Anna Protopapas

like more execute And to for this be I'd and of - listening on rest first the call. busy over exciting had the you thank two you. continue we to able to year. next a to bring Thank substantially into you our of plan We've our and the year. months expect news very

Operator

This the program. concludes

Everyone, disconnect. have great day. a now may You

Mersana Therapeutics (MRSN) 28 Feb 222021 Q4 Earnings call transcript