- Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to Mersana Therapeutics Third 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

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

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

Anna Protopapas

everyone. And to conference our hello, Jason. Welcome Thank you, call.

Officer, also our available Arvin be of Joining me joined our who members and Medical other DeSchuytner. remarks answer questions. today certain management, Yang Chief to prepared Financial our by Officer, with Chief are Brian I'm will

in a forward Mersana recent to at months. continued with have number of We here significant accomplishments momentum

fully a address registration out the have trial within enrolled ovarian the progress we made UPGRADE. were single the plan our comprehensive cancer. executing attribute We year. to point major landscape with need ovarian across We to to milestone in factors. Let's able that think last achieved with unmet just completion development of this month in recap it's one primary of beginning enrollment areas a noteworthy in cancer we with platinum-resistant this UPLIFT, arm three We trial to

the significant with patients by is unmet need foremost platinum-resistant and First faced disease.

high is line end With and potential investigators engagement are mid-XXXX. fully data third positioned enrolled, in is of among strong And globally. submission a that of team’s positive about UpRi the next our and readout Second a UPLIFT expect be we are data by for enthusiasm top robust level execution. the And assuming we to BLA year. what

patient monotherapy there our commenced and platinum-sensitive trial enrolling could Phase NaPiXb-positive In we treatment outside of believe States. is A, combination United approvals trial Phase UP-NEXT, ovarian of UPGRADE an And recurrent X/X cancer, then clinical addition clinical have our UPLIFT, dosing in for with which to support X the UpRi enrollment a UpRi we carboplatin. patients maintenance of in platinum-sensitive and

We escalation early XX that report still to treatment. the whom of nearing have the are we patients now of been a are are their To date, portion few in pleased enrolled, of trial. completion dose

data sharing at to time, that are data of mature second in enter in present dose portion and quarter limited XXXX. the the of this the first expansion we and against A more XXXX expect data opted the set, of we Given robust have to half UPGRADE

breast by candidate that and trial excited our triple designation symptom XXXX, the we're for FDA with negative patients for our adult X Phase metastatic candidate, have cancer. Track we received advanced begun or treatment of the Fast UpRi, Beyond [Inaudible] to product

new generate differentiated continued we have platforms our in highly the get dosing quarter. molecules sites clinical unmet research, three first on clinical is screening our opened later have innovation leveraging activities X Phase for to recently expected this address our engines parallel candidate, to and we focus began underway to progress, also with as product that Immunosynthen needs. trial medical important our of to In a patient pipeline Additionally, XMT-XXXX, potential product

submission Our partnerships. in Medical highly for differentiated quarter, of BLA first am in platforms either agreements provide substantial a and strides far into and into, Officer, our thus and opportunities deeply more through The ADC a demonstrate we've assets, expanding GSK Janssen I as the the to is with entered quarter, two we and strengthened potential we entities expect And owned clinic, entering summary, our the progress given Arvin and innovator, an with pipeline, wholly collaborations third UP-NEXT delve UPGRADE horizon, top choice. number been balance a core position we in head strategy. very data across partner has motion, ADC or in to XXXX. in assets, with line collaborations. key plans. sheet what the areas a of have of new of And achieved Chief be of made Our foundation on the Yang our we focus, in our ask Mersana forward XXXX. an the interest of proud UPLIFT through breadth and strong team see go near-term In space, what and place part a towards the With our readout has the remaining great that, significant exciting will we and clinical I transformative a

Arvin Yang

Thank And everyone. you, morning, good Anna.

UpRi and ovarian our the ongoing three with our within begin development trials Let's landscape. cancer plan

approximately First, our we per target. in dose that XXXX, be in in announced there's ovarian trial a one this would In trial. XXX UPLIFT, utilizing of square exceeding of mg within we patients initial platinum-resistant XX we trial our operate And of meter registrational the year September enrolled cancer. just

provides shots with reminder, a us two UPLIFT on of design goal. the As

ORR second which in specifically primary the overall response NaPiXb-positive And The in ORR or population. endpoint, rate, first is overall is the the the the the population. is

targeted analysis the NaPiXb-positive of exceeded. patient patients minimum of is the has our confirmed have we endpoint that been biopsies primary While already for ongoing, number

and designed accomplish and important several platinum-sensitive trial Phase our Now goals. maintenance X that with tumors patients ongoing enrolling recurrent let's to turn is is to NaPiXb-positive UP-NEXT,

intended it serve the is the trial confirmatory as of post in approval operating to US. First,

remission earlier Additionally, trial looking registrations to mg dose a support therapy treatment setting, patients per on keep of We're meter for UP-NEXT utilizing UpRi plan of Since disease to as long limited was UpRi. XX to patients are worldwide bringing enroll lines These UP-NEXT. squared maintenance therapy. into control in also as we have patients in where We maintain the of three options. or possible. is XXX this types to who currently designed global while approximately includes

in those sequence. in progress The on inhibitors combination who are and or whether taken Bevacizumab, first PARP

patients options. the exhausted lines dose the As that already to these it move agents of earlier increases of therapy, number

best are who from maintenance tolerability And biomarker are studies consequently either resorting poorly issues, today's by PARP are wait patients who because our served and are patients Second, the of inhibitor. achieve there were as and disease maintenance PARP their and agents, watch finally, excluded on excluded stable who status option. to from platinum or

let's see this tumor candidate breast healthy will XXXX of the clinically initiated August, candidate expression endometrial Now effect. tissue, the and optimized X and XXXX will in limited and cancers, BX-HX and trial of the escalation product that compelling be the tolerability agonist, precise the single drug response payload Immunosynthen a safety dose in initial high next other BX-HX duration STING expression we rate, these a equipped expansion validated as dose on agent, as we'll move a six to to be XMT-XXXX, with we'll portion is target directed followed investigating its trial clinic ADC. is by DolaLock with of antibody Phase controlled assess given evaluate a in with which a targets target candidate and indication and multicenter XXXX, we measures. is and a patients portion In ovarian in and bystander And are XMT-XXXX objective entering the of Dolasynthen ratio response HERX

HERX Phase activate signaling we impact agents potential significant in such trial epitope or you recommended to ORR, to and as as dose a trial disease recall, colorectal HERX, tolerability control with will and tolerated dose extension our duration the in X maximum standard patient safety to is low will advanced or treated begin non-small portion escalation HERX residents, as previously in cell gastric, solid dose its cancer. both this and utilize preclinical XXXX combination this tolerability initial with shown in XXXX cells. data patients dosing safety continue of investigate monotherapy the dose. and XXXX lung and the label tumors, a and the as Xopen recurrent Phase targets well have rate. The trial of trial data and a breast, to or quarter, designed As both have expect the on multicenter of tumors will portion HERX, later care investigate cells to and and response and locally assess sting of a will may high immune determine tumor The such and the tumor novel enrollment as expressing of

there across enrollment in we've And platforms so, the our focus significant clinic. three molecules And pipeline, be entire our will made soon patient of ADC generation. and will on on progress from all our and have from data

Financial let's Brian? Officer, that, our to with turn call DeSchuytner. So over Brian Chief the

Brian DeSchuytner

ended marketable and We quarter million securities. the you, Thank $XXX Arvin. equivalents cash, with cash in

to we capital support and line We Oxford an our at currently down us draw further. low-cost additional our SVB into with $XX in or with first may the should extend our proceeds the to commitments option. Additionally, funds noted we opportunity that collaboration future that have from current runway of provides could believe required the credit million be even plan operating milestones collaborations, from It XXXX. potential of half this realize our

GSK raising business within we arsenal. play upfront to are with and strong important continue our We differentiated and platforms Janssen The an meaningful it the capital. tool recently prime we and candidates leverage can into development, enter examples financing collaborations as their while reach emphasis view how expand and our of on

past ongoing surge in the business further ADC see interests of Given come. initiatives quarters to and for seeing the we space, potential development in our are we the successes the

manufacturing the for Collaboration on increase of the an conference year-over-year period antibody period compared These in amount which a our for in same potential or clinical and expense higher on quarter included compensation fees was XMT-XXXX, related to period the XMT-XXXX and was XXXX in and million $XX.X non-recurring compared net the increase in per of The to $X.X to for period of manufacturing increased third by was $X.XX of quarter approximately collaboration loss quarter $XX.X compared Janssen $XX.X the largely million, net related to quarter expenses same Non million, the R&D to of us. of qualification Administrative primarily finally, call. a $X.X costs increased Non-cash by QX of quarter in and million. per preparation same Other million. guided related costs G&A UpRi was of for drivers greater costs related the GSK. revenue process we and revenue was R&D $XX.X $XX.X share for compared for $XX.X same million quarter behind year-over-year the expenses operating had XXXX Mersana’s XXXX. for lab million, $XX.X for third Development million, headcount. agreement increase activities third an XXXX our were for were third cash XXXX was increase with related And BLA under stock-based in -cash of now was provided headcount. the quarter. are of for for or the in for and Most third million XXXX. Now for to for in submission, was the P&L the third XXXX professional net G&A third XXXX costs XXXX. $X.XX to UpRi expense third million, General let's $X.X to loss related year-over-year to and stock-based XXXX. immaterial R&D the consulting compensation share, quarter move for the our the Research XXXX. The driven increase recognized

license this payment. option $XXX upfront reminder, a includes million As GSK’s

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

Anna Protopapas

to a very clinical expect line trials, entered new XMT-XXXX potential XXXX enrollment been submission. we our we Thanks what UP-NEXT year. a and by readout highlighted in into top two Arvin. the into We've completed BLA This and bringing partnerships. our initiated UPLIFT XXXX positions transformative Brian first clinic, and we significant productive This and us for data has from we're already UPLIFT, be

the you families. as commend to extending our we like a turn working to we of Before option. the treatment I open aim hearty UP-NEXT to employees you to their investigators cancer to support much-needed over And new to their thank patients call would that, Operator, to the the With would their clinical let's Q&A, provide like extend would relentless our work, our stellar and thanks are I for advocacy in we please while with, all UPGRADE trials and ovarian provide for a patient call UPLIFT, in questions. the instructions? and also

Operator

Chang Jonathan with Instructions] SVB [Operator Securities.

Jonathan Chang

my Good morning, taking questions. and thanks for

strong question how in on it many understand Thank you. and considering? at already UPLIFT number been First be enrollment overall, trying the that what The biopsies release this evaluable function a factors have patients press target should us are of had able study means. other I'm or the And of point? has patients to we NaPiXb-positive to tell the study. patients’ indicates this Is exceeded. And minimum

Anna Protopapas

yet. the are of XXX we confirm patients overall evaluations So, have And high the Jonathan, we have the wanted full minimum already we've question. of do still therefore, were we ongoing. number you and thanks for we achieved exceeded high NaPiXb date. seen would as not prevalence But to from to targeting expect NaPiXb that scores of The NaPiXb

Jonathan Chang

you. go ahead. Thank sorry, I'm Understood. Anna,

Anna Protopapas

Was question, there Jonathan? part a to second your

Jonathan Chang

color the question provide Yes, study, you to the in limited safety any has on number of looked are how UPGRADE today? around so the patients second able

Anna Protopapas

ability do encouraged But are And on mentioned seen a very potential the cohorts we next the planning still QX combine value are we're with not XX the we've handful As to based them to this the above. expansion combination. benefit enrolled and of call, we yet date, we've in of what on patients, initiate we year. or of

more we a However, point, and that mature robust get to and at be able to do data the disclose more, need externally. set we'll data

Operator

Colleen Kusy with Baird.

Colleen Kusy

will and thanks completing looking success taking And based you on Good you're Hi, will trial. do for to impact or remind that get in of potential your bar the what enrollment us And be have UPLIFT you duration in the congrats ORR for on questions. that great. response for morning, think Can do your PSS trial? think or solely on is Thanks. the you UPLIFT approval? the accelerated any

Arvin Yang

this morning, Colleen, is Good Arvin.

discussed success, a really response is with need agent patients as significant this So rate on space. single unmet know, And of for bar the in maximum have XX%. with chemotherapy FDA you as these

number the broader certainly benefit, But again, risk of so And the that the would context the regulatory risk safety as do and be upon and by will comparison need in based the ORR occur. you to rate review as order the response understand the would have both well or the benefit the parameters profile and to additional merit which benefit the duration analysis. to of the

Colleen Kusy

plan to and That's And to? you UPGRADE starting before helpful. what great. Okay, dose more expansion? you for can escalated dose the you've study, speak many you explore how Thank levels to levels

Anna Protopapas

evaluated Yes, we've levels. Colleen, multiple dose

we, robust in data And will be and I've as as hold off the explored cohort until levels. think done more have QX. set, we but we expansion I multiple initiating to we're going have mature for dose we details data said,

Colleen Kusy

for be And you. can XXXX your thank speak study. ongoing last if one, for biomarkers what that there? one strategy to Great, you the Can will I

Arvin Yang

databases. give the the have Colleen, upon but you in to disease all in we obviously what's BX-HX in context, higher Sure, study the per public are enrolling are comers we BX-HX that relationship just se, and evaluating types to based expression from

that we'll upon obviously, can that if so to enrichment And index. trying serve be there therapeutic pursuing enhance understand are and biomarkers to

Anna Protopapas

X, very did much best enrichment through early for strategy select where but what was. not the playbook the following followed the We're UpRi upfront, we learned Phase we

Operator

Kaveri BTIG. Pohlman with

Kaveri Pohlman

can per for squared? about m update, of UPLIFT pivotal from rationale your based the Is study? the something selecting data the for the on UP-NEXT mg doses Thanks talk morning. XX it you lower trial, for Good

Arvin Yang

call, Yes, thanks for the Kaveri.

where the to milligram the resistance a goal in a a And so the shrink control UP-NEXT mg is relevant or in we most platinum- and study maintenance, that chose which for particular to recurrent XX really opposed platinum-sensitive meter in intent identify is to setting. space the effect squared to the with tumor. could continue the disease, dose treatment as is This order that XX

that to regimen the so, space. And believe the disease the then we ability optimize dose relationship in to we have

Kaveri Pohlman

sorry, Thank That's And you. ahead. second, helpful. go very then my

Anna Protopapas

also the asked answer think is of we based the what have treated you on data and on based think I dose course patients the holistic I well. what on escalation, dose of data all and today, UPLIFT as expansion,

Kaveri Pohlman

do NaPiXb That’s patients what drove helpful. to include to high if And targeting the be interest the for also those second mean, activity protocol the in patients? question UPLIFT amend able in us NaPiXb I patients. low UP-NEXT trial, And to? you specifically can you study, from you will get tell you is plan your

Arvin Yang

me is highly expressed from cancer. the start within let standpoint with, So ovarian that NaPiXb

And the in expressed in so line datasets from the the appears described, it be consistently earlier to line we've late and that setting.

about the ensure maintenance an the And in serve marker want we've that seen. for that so date; risk when could think enrichment datasets optimized that that upon as that. based profile profile to for that relationship that And optimizing the indicates have we we to seen most relationship efficacy target really in just setting, product to we NaPiXb it to

for would time. what rationale leave patients just regards the we relationship that's in occur study, the really or that NaPiXb cannot so changes us, comment in to to occur to would UP-NEXT and in relationship if this they these And selecting in upon

Operator

David Wedbush.’ Nierengarten with

David Nierengarten

PARP And timing question. any any uptick of given enrollment taking just enrollment that next? Thanks to wondering situation there's for seen UP-NEXT, the study upside I the you'd full in space? with if for was in the for if the

Arvin Yang

the excited the in space. enrollment, to continue just to additional first investigators start extremely So let relationship relationship be within me just with so and options off in to

a is significant recurrent patients. those our the proportion in patient of the different And a space, is And the about available that population. But detail be standpoint can furthered obviously by only of really need. of that, One to David, unmet this two go so a couple there into from platinum-sensitive slightly I'll is things. continues serve therapies then

potentially we that's received to received and jab are benefit differential So we is Bevacizumab require PARP obviously on that two, but of enroll progressed do that [Inaudible] actually actually a unless because inhibitors. And inhibitors, there's agents those have they patients already is not prior that from patients seen have in available PARP including again, the could achieved to nothing And that that response to best stable maximally molecular as only chemotherapy subtypes seem induction. for diseases though that third population identify then that PARP benefit approved actually that patients. there, and

And so space. to end, an that need potentially fulfill unmet that able we're within to

all do excitement investigators in an given this, in extreme so in of And the see to we interest participating the relationship and study.

Operator

Boris Cowen. with Peaker

Boris Peaker

first an is on study. My UPLIFT question

be You enrollment. there's an mentioned obviously met Can the there's significant and by difference numbers, than high is higher discuss one FDA, around. may the trial the NaPiXb how you you primary the which other two of and And between minimum mentioned, endpoints, ORR way other there there's ORR those comers. viewed all and ORR or the target then two are completed if patients,

Arvin Yang

thank I you, Boris. Yes, respond. to start can

keeping any don't of leave patients to support the one benefit is so to that order the goals there comers, in Right. population. will that high behind. well But really as have the would in a in all NaPiXb benefit low versus be that in NaPiXb to both the be ensure sufficient mind again, And you as it obviously, risk identified positive

the to then comers, And within the supported that benefit could could broad by all a have identify so, those benefits. there a those indication greater still of potentially that diagnostic if potential further complimentary is again, for populations patients sufficient support

Boris Peaker

comers. targeted in can many be all it you comment how high say commercially, And only if patients supports NaPiXb would it. broadly Got versus

Anna Protopapas

So really high. data NaPiXb sets, we the we have have talks that disclosed about two of prevalence

be first the expansion XX% where were cohort, The one is determined to high. of patients NaPiXb

the tissue where a they The partner, unique our is XX%. found disclosed looked one tissue be prevalence by at samples, set patients XXX second diagnostic samples Lyka and from to data

whether substantial NaPiXb a So we we ovarian is prevalence high of high course could win or population. benefit total we NaPiXb on the of And the believe portion on of platinum-resistant the just the cancer substantial. population

Operator

now I Protopapas for the closing over turn will CEO, call Anna comments. back to

Anna Protopapas

upcoming of forward our thanks and tuned to We in all hope operator progress. the enjoys you, our to you keeping who support. Thank look and on holidays, everyone continued you we for updated

Operator

concludes today's for thank call. participation. We your This you

now disconnect. You may

Mersana Therapeutics (MRSN) 7 Nov 222022 Q3 Earnings call transcript