MRSN - Earnings call transcript Q2 2022 | Mersana Therapeutics, Inc.

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Operator

Good afternoon, and welcome to Mersana Therapeutics Second Quarter 2022 Conference Call and webcast. Currently, all participants are in a listen-only mode. There will be a question answer session at the end of this call. I would now like to turn the call over to Jason Fredette, Senior Vice President, Investor Relations and Corporate Communications. Please proceed.

Jason Fredette

everyone. afternoon, Good

is those please execution statements projected begin, potential laws. and runway. subject could and this cash of will and trial opportunities, Exchange statements. limited call the Each statements strategy, commercial company's Before report Form on potential, in uncertainties to forward-looking statements company's objectives, data platform X, the note These discussed payments, risks and subsequent releases, that meaning associated forward-looking clinical and to, on to not are within include, Commission May preclinical expenses securities and XX-Q to of cause differ contain in operating these and the filings. materially in may risks results SEC with business study we actual filed are or Securities but that related XXXX and the collaborations These quarterly from uncertainties plans federal regulatory those such the

filings update let Our law, over obligation future. available that, sec.gov no the website, the our turn our even assume we required Officer. on to Except in and as to Executive statements new mersana.com. Anna information by publicly With if and becomes available call Protopapas, President me forward-looking are at Chief

Anna Protopapas

Hello, our call. conference welcome everyone, to and

we will in advances Officer, months, in questions. who be the Joining Financial management, to I'm DeSchuytner. Brian space. several the have At me today and patient. towards with made members this Mersana, ADC And prepared joined of remarks are also to our aspire Yang our available Chief Medical Chief leader significant answer recent we other Officer, by be Arvin your

screening another Cleared just into granted for also us trial, and exciting our in potential IND significant registration provides has in allowing as XMT-XXXX. extend for confirmatory with and we for non cleared the gastric orphan to enrollment strategic candidate UPLIFT, to term trial their announced, the dilutive drug while finally, yet that approached longer in that FDA cancer. initiated completion runway, we IND And capital strategic their UP-NEXT, entered potential. retain XMT-XXXX, we announced As this FDA potential our patient partnership cash upside designation financial our

with accomplishment. begin most this me Let recent

are HERX, after excited to a that we immune with in Immunosynthen of deal today is share and that are epitope and co-develop We STING exclusive the the both through signaling and global tumor novel cells. first activate several news commercialize is entered system which option market There in cells providing and into to XMT-XXXX, have particularly ADC. financial to an strategic GSK our targets XXXX, a innate tumor-resident immune noteworthy. aspects this designed make collaboration,

financial a believe asset stage magnitude. perspective, from We foremost, an very deal [ph]. this meaningful for ADC early is and First a it's

Immunosynthen our it XMT-XXXX. So of strength the potential platform, transformational data, of recognition of is our the preclinical differentiated and

Secondly, XXXX, option runway $XXX the million beyond of first well the extends important points. upfront purchase into of inflection half fee are

coupled that financials given development of their program, be an the they our other of milestones and share our would is strong agreement finally, of by from partner is additional and we longer a XMT-XXXX. Immunosynthen GSK capabilities, and development, cash this our potential development their Brian while potential for pathway. and global the of XXXX, commercial platform deal option, perspective, minutes. leveraging this view exciting of the deep experience assuming year, collaboration some the wealth potential endorsement this momentous we information Thirdly, STING a a When Dolasynthen in space and so that fund XMT-XXXX, broader during a of ADC, IO the the this term recent the choice platform, this strategic for Mersana of is program. period shared will space. value few in a GSK believe vision Janssen earlier the as will being on just believe We the formed partner participation ideal increasingly offset with majority structured, in that for all viewed also the will in we be reaffirms retaining it contribution generally ADC a with features, And costs and

Now, which progress in position our as have remains made medicine cancer, let's our the against touch on ovarian top recently in to UpRi we executing foundational a priority. plan

our indication around pace are third the the of and arm the ovarian continue be announce quarter. for in maintenance potential trial monotherapy enrollment to and ovarian readout a track of We would our NaPiXb This platinum-sensitive is UPLIFT, UP-NEXT position recurrent top in end completion and Phase trial line high registration single enrollment the of to UpRi pleased this cancer by us XXXX. clinical in BLA in on cancer. platinum-resistant to X

that recently to And We report this initiated patient then, we are pleased screening there's UPGRADE. in trial.

our clinical top for very substantial progress cleared with which UPLIFT on information In We line demonstrate arm underway been generating these moment. early filing pipeline first data has recently the escalation for next broad more position line And the patients. the clinical UpRi INDs. range ovarian umbrella at is the thoughtful will platinum-sensitive readout cancer of just period UpRi's productive safety across and confirm and and looking potential Our XMT-XXXX, is settings. And a data trials its actively combination share manner strategic efficacy X/X in XMT-XXXX BLA trial, of both and Phase carboplatin. tolerability, make Mersana. UpRi, our the a potential to Arvin and Dose clinical in trials summary, three efforts diversifying in beyond ongoing a this have These of we're trials while also in year. which of another combination in with our

Medical we we with sheet We look to molecules XMT-XXXX partnership Yang deeply our be plans. are are the delve what advancing to to and momentum and to ask I exciting We anticipate substantially we and this a Officer, transformative approach our Arvin that, highly With more clinical year, as progress into half the strengthening of XXXX. in the second with our balance continuing Chief will and through GSK. XMT-XXXX, forward differentiated

Arvin Yang

and Anna, good Thanks and both to a the strong in you, support part ENGOT. from Thank GOG everyone. afternoon,

We progress the development advancing ovarian in treatment. across UpRi's make continue meaningful cancer to

Let me UPLIFT. with start

registrational has end enrollment Anna and remain complete third been in robust, quarter. the As on the trial this around of we mentioned, track to enrollment

global confirmatory Turning Despite to by to to lines as we're a and X is the platinum trial, UpRi's Bevacizumab, approval earlier today's serve in registrations, U.S. groups unmet of and high to remains care. post of excited of needs maintenance therapy. our in the potential the needs Phase trial therapy. primary UP-NEXT designed support patients address its were recent expand of standard relatively to a UP-NEXT PARP underserved medical the of three inhibitors setting there approval following by

patients The sequence. have in on or are first PARP progressed inhibitors who combination Bevacizumab, in and taken whether

patients are the platinum by from larger stable consequently of UpRi agents, who from as and maintenance establish approximately the served this who are patient option. the the Initial Ultimately, third to best in for are their are are in first inhibitor is underway. UP-NEXT potential poorly PARP UP-NEXT the PARP and disease patients even today's patients watch space. as been therapy Second, excluded treatment in are resorting an maintenance clinical wait and trial. on UPLIFT. excluded provides achieve There's platinum-sensitive labels. and who to And the we in been are enrollment ADC XXX patient have sites targeting evaluated activated population worldwide maintenance that has screening the studies

through bring therapy into UPGRADE. In seeking are earlier lines addition of to to UPLIFT UpRi and UP-NEXT, we

efficacy We're mentioned, UpRi in Anna with combination escalation this this As this is interim the portion the dose in and the portion stage even believe dose carbo early escalation insights at fourth quarter of into look UpRi data at first combination the valuable to initial and with a investigating we plan platinum with in the will the tolerability of dose tolerability and of this carbo platinum. provide trial. trial safety expansion the combination more year. through first of We gain during of potential

move XMT-XXXX on stage Now, our let's to XMT-XXXX. and candidates, earlier

preclinical tolerability including candidate cancer. was and is second is payload report expression. a compelling is Dolasynthen to has with XXXX happy of X has potential Initial directed PD-LX over breast cancer, may cell then, PD-X appears data of as between there's ovarian cancer, efficacy investigate range precise this peripheral severe trial this for agent endometrial XMP-XXXX, others. ovarian heavily a cancer molecule gastric unmet endometrial We've ovarian of solid models in its drive and we expression reminder, approved, been And recently clinically DolaLock by impressive see year. pretreated given without As BX-HX will directed it's cancers including half patients of need, expected have our of expressed the its sites a that and where and target, small This In will there course breast, and enter cancer. tissue, an is will BX-HX generated microtubule This FDA. X target its toxicity. overlap cancer, promising apparent Mersana’s clinic target-optimized effect. clinical lack begin cleared inhibitor of even tested a and triple-negative activated a non to we're expression be XXXX. preclinical And in bystander already a with very Phase dosing breast, healthy neutropenia, as established to cancer, in for imminently. extensively our drug the HERX, expression ADC greater And six an be validated expect and with XXXX the which in at limited and breast high DolaLock Phase antibody to we is been efficacy which neuropathy and ocular IND to XXXX and lung in shown well tumors results. among ratio course, BX-HX controlled or

XXXX in and HERX with observed We activity in synergistic also models. as expressing HERX have shown agent single notably, inhibitors, HERX index that HERX and for is a when standard other in has in trastuzumab cancer, been potential such in low preclinical of with used epitope high, models. activity XXXX XXXX demonstrated checkpoint combination both And has agents HERX. It's and care a breast wide distinct from as the targets are possible therapeutic very because This Pertuzumab.

the call programs looking to forward that, all let's generating And have and over Brian? Chief to three With to DeSchuytner. we're Financial platforms. turn motion, ADC data clinical Officer, these our three our of so, Brian in we're from excited

Brian DeSchuytner

Arvin. you, Thank

which upfront sharing a significant additional global exclusive This million. option our collaboration purchase is option fee commercialize Let's for begin GSK XMT-XXXX an with by provides view an Mersana. collaboration and for about with $XXX context some of GSK, co-develop achievement we to

entitled billion $X.X in up approximately For additional development, $XX million we GSK and to exercise to milestone and receive an be option, regulatory its payments. to will choose commercial payment

development the by of if GSK our and for indicated, be costs they will Anna fund majority other generally As in, development would offset contribution XMT-XXXX, opts milestone and a cash features.

We also exciting the the this value from longer ability benefit potential to have term of program.

share, information to research receive and Further our as Janssen filed contained this deal product to to agreement we outside sales arsenal. XMT-XXXX U.S. we the we platforms and how sales. up again opt structure ranging demonstrates royalties our would leverage options of instance, If This we and retain allows within in, can tiered collaboration mid tools the For for follows do digit our just royalties that the If net the double in year, financing into net us in co the with candidates X-K XX not once global the SEC. on the with share, opt profit earlier profit we on promote would we receive U.S. is

about cash, talk quarter operating our million fund plan. cash equivalents the ended $XXX financial in to let's and So with approximately security. marketable resources our We

in to The agreement in Oxford million from believe the quarter headcount. capital clinical and of we the with required period operating stock second collaboration year-over-year Collaboration in brief into with for based UpRi platform, The XXXX. $XX.X clinical million, the commitments SVB and million, to our costs an half by the the compared was opportunity the now upfront $X.X with in increase quarter. and was Research was fund Non-cash the primarily XXXX costs XXXX. revenue us expense financing we increase million. the XMT-XXXX R&D the the of manufacturing for low for compensation payment of XXXX. and million credit and year-over-year related R&D XXXX second at compared $XX of period development our related When XXXX expenses line were of our $XXX revenue to same recap combined down amount same quarter for for was to our quarter have Dolasynthen Janssen. additional of second a immaterial for second cost plan manufacturing $XX an to option. an $X.X driven provides for in draw recognized Additionally, million of increase and And first with P&L higher GSK, our under

Janssen Mersana’s we in headcount. expect Dolasynthen a to $XX.X period consulting we used costs potential As million, million. of net and our per long year-over-year $X.XX for share antibody of $X.X million conjugation professional components same quarter increase in for described, was efforts near $X.XX G&A compensation in XXXX expense for XXXX or and non-recurring UpRi the term was the runs General related cash $XX.X and of increase for same second to term loss to manufacturing to anticipation quarter to in second $XX.X to and per million, of stock-based was net activities previously of ensure administrative primarily quarter BLA share, incur the loss for million XXXX.Finally, in fees XMT-XXXX net for and collaboration. G&A the operating supply XXXX a XXXX. related the in or filing, the related $X.X quarter increased an second of and for and our compared both were $XX.X second cash period The in expenses million, of was XXXX. compared Non the

Anna? take will our Anna Now remarks close your before formal we questions.

Anna Protopapas

on with partnerships and you Thanks, a would meaningful open provide and that, thus put, we're plans. in in working UPLIFT, of strategic about our excited the UpRi, to Brian. let's all Operator, UPGRADE, cancer, with progress with Simply foundational We're made UP-NEXT build in Janssen and the prospects questions. execute With instructions. believe we please our call medicine XXXX. new incredibly the position and From have and GSK. ovarian we're XXXX the progress our to strong your the far to XXXX proud

Operator

line Please [Operator Instructions] Chang Jonathan First question Securities. of with SVB the ahead. is from go

Jonathan Chang

on Hi, questions. my thanks the taking And guys, partnership. for congrats

First question on XMT-XXXX.

how Just the And for guys data you still are running clarity. decisions study? made? on Are X Phase disclosure

Arvin Yang

Brian that. will take

Brian DeSchuytner

absolutely. Yes,

to XMT-XXXX, fairly an X be X Mersana. Phase with inhuman continue study, Phase breast remains escalation owned for first the fact, We towards will eye cancer. by typical That in a wholly dose run enriching design

Anna Protopapas

And it’s gut completion to where has obtain, Jonathan. [ph] thus, GSK the of an option

Jonathan Chang

it. Got

timelines exercise? just option color any exercise on I guess option is, -- the So sorry, the additional the for

Anna Protopapas

of But It's take too early to for you given far -- I we us to really how think we need the we've provide sense a timelines. will program.

Jonathan Chang

Got it. And on the Immunosynthen platform more broadly.

strategy efforts opportunities have the How thinking and HERX. beyond development You guys specifically? here should we XXXX business about beyond potential here

Anna Protopapas

Yes. Well, by platforms, have know, position, data. of all we're you in are three a supported to very as substantial which fortunate

additional clinic. harness. be take And a in platforms us one any potential in advantage in position all will Soon, and the can we three for here leverage bring forward. more to could company that frankly, And these to products than there's exciting take that puts

like asset strategy, whether like of important part So deals GSK. with did are they partnerships done the one whether our Janssen, be we with we've or a they very one remain the platform deals

we is So, really this interest high in discussions great in leverage position and to the we engage in find quite space to are ourselves at that the point. interest. And continue ADC a

Jonathan Chang

Understood. Congrats again.

Anna Protopapas

Jonathan. Thanks,

Operator

Your is question Colleen Please go Kusy with the of next line ahead. Baird. from

Colleen Kusy

XXXX, with data in thanks questions. know GSK on I Congrats process? and Hi, cancer. as diligence partnership good shared Starting with was breast you taking for your for was that mentioned new any And well, afternoon. enriching the there the

will the in So lung well? that study it a gastric has other you indication? fair prioritized enroll as that GSK still interpretation And is that and

Anna Protopapas

we been the can not review only very, have of FDA. involved, comprehensive, the the platform, of have with recently publicly, very we Immunosynthen lot and you very cleared shared that support we comprehensive a to IND a imagine, diligence So, data other data generated but have the of was the the as XXXX including potential

has our include indications. tumors, also that HERX includes other very include gastric breast As vision but GSK for shares think lung, program, other the XXXX potential in include -- broad I which and development indications, expressing

So the breast to indication. be largest happens

number dose are sure make includes our patients, our broad. to want that breast we cancer interests escalation So very but sufficient of

Colleen Kusy

helpful. Thank And a That's follow-up. just you. Great.

this the see? many UPGRADE expectations you we of follow on For data in quarter and much the help fourth patients that could year. set maybe how we'll how see up us Can

Anna Protopapas

you to? Arvin, do want

Arvin Yang

Yes, sure.

So, thanks, Colleen, for the question.

And so, this our be will initial interim data.

that's relationship in that way Just combinations to prevented be other to in the a following UPGRADE really relationship of overlapping toxicities compounds standpoint in from developed. hypothesis non from there's effectively being that these

characterized knowing be have And an safety we data. toward the would when the to be intended that that so, this further and is efficacy tolerability eye expansion

Colleen Kusy

you. Thank great. Okay,

Operator

Instructions] [Operator closing CEO, Anna the for further no this call questions. time, back appear to be I return And will there at Protopapas to remarks.

Anna Protopapas

operator. you you, calls at in seeing tomorrow of look for Biotech Thank hope who and your our on and PacGrow We their everyone conference to the BTIG this updated turn continued you Wedbush enjoys rest summer, you look to We Healthcare of all thanks And Conference. the support. to keeping Conference we the of progress. and forward many forward

Operator

all for today's joining conference call. you Thank

You may now disconnect.

Mersana Therapeutics (MRSN) 9 Aug 222022 Q2 Earnings call transcript