Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to Mersana Therapeutics Fourth Quarter and Year End 2022 Conference Call and Webcast. Currently, all participants are in a listen-only mode. There will be a question-and-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

related forward-looking please platforms, statements releases, begin, These this payments, will statements commercial the to, call opportunities, Each may our potential potential Before candidates strategy, product the note associated operating clinical designs, meaning and and could objectives, of subject uncertainties initiation, forward-looking and from statements. collaborations those cause limited to are and projected not within these execution but of laws. to the risks of contain therapeutic actual regulatory include, of our plans we in such potential and differ runway. are expenses data that those cash that to business and federal statements securities materially trial results

company's filings. uncertainties on Exchange Commission These are report filed the and the XXXX SEC X, in discussed in Securities quarterly with and subsequent on and XX-Q Form risks November

and filings Except sec.gov Our publicly website, by available forward-looking new update obligation even available required in we statements if mersana.com. information as are assume future. to becomes no at on the our law,

Now the let me to over Protopapas, President that, and Executive Officer. call our Chief with Anna turn

Anna Protopapas

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

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

leader in partner execution we multiple solidify XXXX. within We ADC of a advances are our to team's XXXX the helped made business development by both role in space. as as The pipeline choice to we pleased milestones and program, has a Mersana's further development and very progress the of the UpRi on seek clinical task

notable Let's briefly recap of year. most accomplishments over past our the some

executing comprehensive in non-registrational in we ovarian ovarian medicine platinum is the our cancer. and to we our Early as UpRi single foundational trial cancer. UPLIFT, progress quarter, completed on plan enrollment in establish a made in in First foremost the fourth resistant

advanced in of X on in clinical maintenance monotherapy treatment platinum-sensitive enrollment recurrent cancer. UP-NEXT trial We Phase ovarian UpRi as

data As S., trial the of of of if UP-NEXT believe support approvals could earlier U. UpRi the the post this in a we into U.S., reminder, expansion therapy. is serve support outside approval and the as potential confirmatory UpRi positive lines

completed with Phase More recently, carboplatin we portion and in the dose UpRi initiated escalation ovarian combination platinum-sensitive UPGRADE-A, trial expansion in of of X our cancer.

X we in Immunosynthen believe features we our of UpRi, address areas product strongly Phase in and XXXX XMT-XXXX, action our and HERX of have medical candidate. could XMT-XXXX the our initiated patients that of Beyond BX-HX mechanism product into August. need. XMT-XXXX we we as seek began X pharmacological them Both unmet trial dosing differentiate clinic. Phase XXXX trials to XXXX, month, high and last brought just We Dolasynthen candidate of our And distinct

potential progress, As data. a attracted of result Dolasynthen our from product with we interest Dolaflexin, clinical of parallel generating product clinic In numerous and efforts, and three all the our collaborators. in these the now Immunosynthen our have candidates of candidates have platforms platforms.

GSK alone, three recently XXXX then Janssen, into December In in collaborations, entered Merck with and we with first KGaA. new with more

and a business ADCs of overall We in level fundamental to to collaborations remain our high continue interest strategy. see

about already tremendous accomplishments are initial successes summary, XXXX. we in lies of [BP] XXXX and In our fact, what was year In excited a leading to ahead milestones. are

Arvin that, our Officer, let's Chief have into Arvind? into more our Yang, getting Medical deeply progress. Before clinical delve

Arvin Yang

you, Anna, and good Thank morning, everyone.

individuals point platinum-resistant prognosis. pretreated are ovarian thought a most cancer. be we today UPLIFT top have heavily line disease, at the might of the patients poor faced to the by everyone approach it remind are very helpful unmet advanced medical we of and These significant readout, As need their with

Past approximately shown single trials patients patients. four We've Single XX% enrolled at rate for setting. chemo with ORR objective included agent agent response an for includes that patients broad therapy. this lines chemotherapy is to have earlier XXX up or approximately of in the UPLIFT consistently in most option population of a have only and

in and endpoint primary the The is trial the positive NaPiXb ORR the population.

For context, sets ovarian data of shown NaPiXb that have a multiple majority positive cancer expression. have patients

In cancer fact, tissue suggest overall includes dataset presented population that to XXX NaPiXb are the the approximately date largest NaPiXb unique of ovarian roughly that and been XX% positive. has samples

today's XX% the objective of confidence study designed the is The for and care standard response to interval. exclude rate XX%

along overall evaluated we to be safety, the of ORR, addition the the tolerability, UPLIFT or FDA with in to the DOR by context In would expect response duration of data.

expansion our of patients in UpRi an approximately positive of a dose with DOR a valuable across For context, levels NaPiXb months. generated XX% ORR in five trial, dose

both for in without expansion dose tolerability we Additionally, peripheral saw a escalation neuropathy UpRi differentiated and toxicity, ocular severe or neutropenia. profile

UP-NEXT, further that is need ongoing to recurrent maintenance is turn Phase X as ovarian platinum-sensitive There new even cancer this given treatment our tumors. inhibitors. positive with patients is a options the restrictions let's recent enrolling label PARP UpRi need Now NaPiXb to treatment and maintenance a trial substantial expanding for of monotherapy and related

HRD today patients with the frontline. BRCA or patients getting Clinical towards and with inhibitors trending HRD bevacizumab the without getting in PARP is bevacizumab frontline positive practice tumors and in

UpRi. we have the opportunity disease, which exhausted most time believe As our treatment their by patients maintenance they have options with increases recurrent a result,

UP-NEXT response patients maintenance the placebo. standard setting, in chemotherapy. to who of recognition stable the care of is disease to in in it achieved And UpRi better randomizing X:X their is recurrent or of lack induction enrolling have them prior receive or

survival trial the review. Our central blinded free progression by primary for endpoint or independent is PFS

and combination cancer. in cancer. of has Historically, carboplatin platinum to UPGRADE-A in combination for paclitaxel the of trial as of Phase X in UpRi Now the carboplatin with platinum-sensitive earlier let's therapy standard sensitive served of our ovarian ovarian lines move care

distinct However, and this can that has neuropathy probability neutropenia, limited include been combination peripheral challenges severe by alopecia.

monotherapy. UpRi we quarter, paclitaxel to were this of in of portion the UpRi then induction designed of the replacing as to this with potential pleased investigate dose phase and expansion begin treatment We UPGRADE-A Earlier maintenance the trial. benefits continuing

its of X our healthy in BX-HX. of equipped trials compelling XMT-XXXX our a and Dolasynthen expression payload controlled as see And we to now tissue. given XXXX variety its clinical of the We with target high BX-HX effect. targeting expression Phase X ratio tumors a is XMT-XXXX both finally, in drug excited on candidate product target is and antibody limited XXXX have and precise with front, a underway. optimized to are DolaLock bystander

investigating with XMT-XXXX candidate or Immunosynthen investigate cancers. our the breast, first high trial to solid STING our agonist, with initiate Immunosynthen directed also multicenter trial patients patients cell And treated trial levels X In excited The and advanced we Phase is X Notably, our enter HERX ADC. low and is non-small of January, to candidate Phase were this is cancers. and designed of ovarian in this in endometrial expressing colorectal such lung tumors, previously recurrent HERX as the gastric, to clinic. breast, XXXX multicenter

recall, in tumor targets that cells XXXX those and As from residents and HERX novel distinct targeted in trastuzumab STING to pertuzumab you and is immune epitope tumor it signaling cells. both by a locally designed may activate is

our as efficacy preclinical the a firmly models, our care as and in and three of high HERX both has candidate so is In enrollment tumors, agents on of expressing focus compelling products ADC generation. standard data shown platforms combination clinic, such from patient and monotherapy in with now with this or in all low

With call on Brian Financial to DeSchuytner that, over our for let's update financials. turn the Chief an Brian? Officer, our

Brian DeSchuytner

you, Thank Arvin.

majority approximately form in XXXX generate we $XXX in million past milestone $X royalties. These As over theme capital, payments of central were our able of the upfront needs on, plus business year. to the helped significant cash provide in potential the for touched vast Anna for as deals development also which operating has was potential offset a in future the to billion

discovery As form milestone collaborations also the seeing Anna the mentioned, we're benefits in of our revenue. already of

fourth most ADCs XXXX targets. as success of Our against research a to with directed up came agreement the into novel Merck commercial discover to we entered Immunosynthen collaboration in and KGaA license two recent quarter

to of million and the net Under the double-digit milestones, well receive the in we upfront payment as commercial regulatory up $XXX percentage to on development, million up as royalties sales. $XX to terms a tiered and are received eligible low agreement,

see a and expect and within development an innate business to important modulators moving remain ADCs both in immune of tool to in amount continue We interest, forward. our significant financing arsenal

our equivalents highlights to quarter from XXXX. year XXXX. at million ended year from the our end with marketable and approximately fourth cash financial turning of up cash, Now We million in $XXX securities $XXX

of available early line in received us Merck's credit to We have upfront million and payment. a $XX XXXX also we

are milestones past half result, position we a required plan of of commitment in funds support operating well As the to financially potential with several strong into significance. the second our XXXX, a

we or guidance does runway our noted, It future potential realize may our payments collaborations. from collaborations assume should cash that from current milestone be that not any proceeds

for the our in of agreement was quarter fourth initial Collaboration of $XX.X collaboration with used immaterial the Janssen The operating related including million approximately cash our period for an and same under compared XXXX. Net quarter year-over-year to was milestone in activities primarily increase XXXX. recognition GSK, $XX.X revenue Janssen discovery XXXX an the to fourth for amount the million was of agreement.

for stock-based XXXX related period the was increase UpRi, related $XX.X primarily increase to quarter expenses for of $XX.X higher year-over-year headcount. X compensation the to XXXX. start-up related million and for fourth for clinical XXXX expenses $X.X costs development Non-cash Phase expense and same of in compared activity XMT-XXXX million. R&D million XMT-XXXX The quarter Research to in trial clinical R&D an the in fourth were and and manufacturing was

The XXXX and same stock-based during consulting General fourth was of related XXXX. million. compared to primarily were increase XXXX to period an $X.X of in in year-over-year increase the fourth in expense headcount. and fees million and related million G&A Non-cash for quarter the professional was expenses expense quarter $XX.X compensation administrative for G&A $XX.X the

XXXX. of $XX.X for quarter a loss XXXX the $XX for net of million, million, the same net in to fourth compared loss Mersana's period was

turn now, for remarks. And I'll to few call Anna a closing back the over

Anna Protopapas

Arvin. and Brian Thanks,

are line incredibly to following oncology conferences milestones. the include June. our seen mid-XXXX XXXX These data major UPLIFT top from plan and approaching now in fast in multiple significant We've productive report

Assuming the positive outcome, our file around end would year. a a to BLA be this plan of then

plan second We of this half from the and report UPGRADE-A advance significantly year. data in enrollment to interim UP-NEXT

X of we trial opportunities We X year. proactively of non-dilutive could maximize advance XMT-XXXX the dose of reach trial will evaluating to generate to of while candidates this our the existing that the capital. our And expand collaborations, of Phase product XXXX execute platforms, new intend and escalation Phase help our against complete portion and collaboration our development

to With look and Mersana our differentiated forward our strong we're recognition progress. candidates, increasing on a aiming industry keeping make year XXXX to position, financial highly updated for transformative product platforms and ADC and a you

please provide you instructions? With that, let's would to your the the open call Operator, questions.

Operator

comes ahead. Instructions] question Please [Operator SVB go Securities. Chang Our first from from Jonathan

line open. is Your

Jonathan Chang

Good taking morning. Thanks questions. for my

the With the that can near and a strategy thoughts of your Phase the result? be X your how positive impact or event folate data how you about study also thinking could receptor investors share alpha? of expected not term, of And negative UpRi MIRASOL the Thank with or in on should NaPiXb results latest overlap you.

Anna Protopapas

you, Jonathan. other I any cover your little can the and bit a Thank overlap talk about question. can aspects Maybe of Arvin then

NaPiXb as we've NaPiXb samples of partner, multiple have and ovarian the majority demonstrated looked from our we unique XXX disclosed were with disclosures, So are cancer XX% the you represents In patients that aware, diagnostic high as them and published tissue largest together of at we study high. data patients. in

that's We Merck, consistent understand is with banks our about smaller from published XX%. results cohort tissue And expansion concurrent falling FDA other studies. the of materials the that high the and with approval from

into two these a consideration is the take correlated. fact not there particularly antigens that small So, as overlap are you

unmet overlap So a fairly small. need for but very two there's patients, this antigens these obviously, between the high in is the

MIRASOL? of of do you in any terms have Arvin, comments the outcome

Arvin Yang

thank Anna, Jonathan. and you Yes,

population study particular, alluded in prevalence. So study the follow-up to confirmatory that also in and a just it study question MIRASOL UP-NEXT does receptor of conducted to study the the is relationship our relative the fails successful, the [mirvetuximab], to UPLIFT is psoriasis not earlier to on alpha our MIRASOL folate very and population. actually the And similar is a identical development has recognizing in to to pathway original NaPiXb not the in population in just if if in in relationship smaller UpRi impact prevalence line as whereby [indiscernible] it's UPLIFT Anna or for

Jonathan Chang

it, Got thank you.

Operator

[Operator Ashiq Citi. comes Instructions] go from Please question Our ahead. next from Mubarack

open. line Your is

Ashiq Mubarack

Hi, We team. Thank duration much my you of very UPGRADE. for questions lot get taking of response questions. for on a

the to relatively at that comment all can were responders duration X? five Phase months Phase for you a X expectations of NaPiXb from UPLIFT, based on was on for small number maybe your course, number We So relative of the know the high.

the how the to the you're or wondering just thinking number potential of variability to So duration Thanks. upside maybe about downside?

Anna Protopapas

could you Arvin, this? take

Arvin Yang

Sure, absolutely.

thank question. no So, for the you

that five data. And believe we as months expansion is seen is response what quite duration with is from on discussions So, clinically based This clinical actually we this of investigators. had you of our described, meaningful. our

further to in mind off chemotherapy. variability, that XX% the regulatory rate, the Just which efficacy benchmark is reviews, comment for we've already indicated on is keep endpoint agent based that objective primary of single response

the Now, will other incorporated be recognizing taken into asset. such driven endpoint, the time also the of event that amongst variables it's duration of and considerations it response But certainly, will as a tolerability consideration. safety be into

Ashiq Mubarack

indicated meets I X you be the FDA the an on sort "substantially UP-NEXT I'm the FDA criteria signed confirmatory confident accelerated And helpful. has make this just decision very approval can are largely on that you've to enrolled"? or will wondering further necessary? Thanks. that's that it, enrollment any to the commentary completed strategy of that be the you give more, has could by ask mean, Phase regulatory one confirmatory off usual if this how if time trial Got UpRi. I discussions for are on plan if

Anna Protopapas

at And where means. underway UP-NEXT. know, as half on the trial fully the decision therefore, no underway you be will of further indicates approval. And recent expect we by confirmatory There's question. you good [indiscernible] we the time indicated time second that's last can the that a there be started as in to But expect what it's we aware, year FDA accelerated obviously, in in Ashiq, UP-NEXT the you're December the that is the definition a of well underway

Ashiq Mubarack

much. very Thanks Perfect.

Operator

Asthika Goonewardene ahead. comes Truist Our next Please from Securities. go question from

Your line is open.

Asthika Goonewardene

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

a on be maintenance get to Ashiq's your wanted do you at and to UP-NEXT, be the spectrum take How with look Immunosynthen MIRASOL broader to beat they to related for some And patients UP-NEXT question, bar wanted line the Just fourth then your of the of while want also that of about to psoriasis. ImmunoGen think be you'll sort we you could given UP-NEXT? line Immunosynthen. thoughts or do recruiting kind second saw the the to the you on for? is FDA study a experience were Thanks. How do think of at deciding looking going data FDA they'll see data the what think for

Anna Protopapas

this take you can question? Arvin,

Arvin Yang

absolutely. yes, Yes,

in bar So first to let just to in arm what be me start control the UP-NEXT. potential would question, for with relationship relationship the

best PFS in the is comparison I in trial the study. PFS this months. recurrent arm from or niraparib placebo setting. maintenance of a And the in really actually historic think a would And example the platinum-sensitive that demonstrated X.X NOVA study approximately with a come

treatment that in to stable NOVA, described. disease earlier line. were then include mind PARP in the keep study, not also couple be than of more or since so with PFS just But an expect in the - There conduct are heavily the now of might inhibitors that, our included patients that patients variables reasonably addition are additional has a pre-treated eligibility landscape in bevacizumab that criteria, And to is one time of that we evolved, lower in the X.X I which

about second question, briefly the me second as far remind As of UP-NEXT? could just the question you

Asthika Goonewardene

Arvin. Yes

study. at what the FDA when So experience MIRASOL on the that we ImmunoGen their to the decision were want they making did saw with the data look psoriasis

at looking want I in for at - think the take FDA your the UP-NEXT do to they And be look you ask, expect look when they'll what data? you to UPLIFT? So do as

Arvin Yang

great that's question. Yes, a

we in a FDA, so, on can't comment obviously And UPLIFT. but mind to line that keep UP-NEXT is relative the different setting

was in were an the setting where very studying but of populations. so And MIRASOL identical similar, this psoriasis, and they instance essentially

information. ask can they And so for would one, that could which by rationale that be speculate that the

in UP-NEXT data. different would population, that recognizing And it's UP-NEXT would a So or study then double-blinded relationship line at any question to there one that. utility in whether looking placebo the in be also not is a

Asthika Goonewardene

Got it. taking guys. Thanks my questions for

Operator

[Operator next question Boris Please Instructions] Peaker ahead. Cowen. go from from comes Our

Your line is open.

Boris Peaker

taking for questions. my Thanks Great.

on we confirmed The what will first, efficacy specifically get get we'll you the at point, comment metrics? will in anticipate year. on responders UPLIFT response we the I middle just that Can what want of to any get to the data be assume rates other for also responders clarify that this data durability of all when we -

Anna Protopapas

we you, - for So expect thank the question. Boris,

top be data rate set We will that at would occur June include that expect medical time we data with will we we that locked line will disclosures as At major response well in the is the to clarified duration disclosed midyear have have safety point, have as some that response conferences frame. data that database, to top subsequent that overall of include line the the point. seen a other typical of that and

Boris Peaker

clarify, to June, the applies me to going be in just I let is so meeting said subsequent you conference data think ASCO. So medical which

So ASCO? the after should come data

Anna Protopapas

that wanted to after midyear, was it sure we that Yes, ASCO. clear, will make come but

Boris Peaker

the on Got doing BX-HX pursuing on been my last additional get this And data on some question, it, And okay. we when What target? some that the just will work companies that. target? are are just you've

Anna Protopapas

want you Yes, describe here yes the Arvind, to and companies what do other know? we

Arvin Yang

you, thank No, Boris. you, Anna. thank Sure

to drug antibody platform that we our a ratio to is to you differentiate and target of X and start aware antibody other same just BX-HX. And using give Dolasynthen X.X. working ratio - we're so, with of companies least we're Seattle the are have that do context, their to to relative I'll drug Genetics fact two relative where at on the we this of

the within utilized We profile and that able been instance, same actually with differentiated we've payload a demonstrated safety the that payload clinically UpRi, characterize we've is also significantly DolaLock And where in utilize as a to different. whereby as if with neutropenia toxicity limitations associated it's have does the [dystrophinia]. Seattle is Genetics platform, all it as and patented understanding neuro-peripheral peripheral - lack neuropathy that of as ocular well peripheral neuropathy, well neutropenia my

of breast may prior The knowing the evaluated about of in this BX-HX these has for understand payload yet development patients AstraZeneca. other And except that new cancer in already a scenario. company platform, topoisomerase earlier we patients they're topoisomerase's have on with I'll been that an this not pathway focus thinking be clinically breast line of which is And developing therapy. would many received not ideal the sort cancer

So, completing completing the of thought, or BX-HX for this dose guided escalation toward end our XXXX year. we've molecule by our the

Boris Peaker

for my Fantastic, thank much questions. taking you very

Operator

We queue. Protopapas, to remarks. back for company's have questions I'd Anna CEO, the no the like to call further in turn over closing

Anna Protopapas

you, to who support. and your for thanks of tuned Thank all operator, you in continued

forward will there. to participating We And ahead. in and many be Enjoy hosted by seeing the in of look the conference your day. of Cowen rest Oppenheimer weeks you

Operator

conference for This concludes you today's Thank call. your participation.

disconnect. now may You

Mersana Therapeutics (MRSN) 28 Feb 232022 Q4 Earnings call transcript