MRSN - Earnings call 4 2023 | Mersana Therapeutics, Inc.

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Operator

Good morning, and welcome to the Mersana Therapeutics Fourth Quarter 2023 Conference Call and Webcast. [Operator Instructions] Please note, this call is being recorded. I would now like to turn the call over to Jason Fredette, Senior Vice President, Investor Relations and Corporate Communications.

Jason Fredette

Thank you, operator, and good morning, everyone.

Before we begin, please note that this call will contain forward-looking statements within the meaning of federal securities laws. and but product limited trial candidates, results, development include, to those execution may business platforms, our business efforts statements are to, not relating and These runway. cash strategy, clinical could such forward-looking these materially to uncertainties to is Each cause projected of results in statements actual those risks subject and that statements. from differ filings. Commission on in with the filed These uncertainties discussed are XX-Q and risks XXXX, in and Form on Exchange and subsequent X, SEC our quarterly report November Securities

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

and let to begin and call today's Executive our Marty Marty Officer, Chief we me over Brian to Dr. discussion. Officer and Financial With DeSchuytner. turn Mersana's On Officer, call, the that, President Chief Huber, our Operating have Chief

Martin Huber

with be you, It's great Thank to morning, everyone. and you again. Jason, speaking good

aim of call today's off start high-level Let's Mersana. brief with description our here a at

Although believe on ADCs platform address that Mersana, full focused established limitations At forefront innovations the forward meaningfully therapeutic payload and are safety at we oncology, potential. position there ADCs. these and preventing from of limitations of realizing significant this we're class the its have to to improve bringing are a firmly efficacy

today's also something goal of with and Our of care first, ADCs, standard us allow can isn't to in that ADCs. this them believe We of combination simply possible maximize used of cytotoxic effectively are, goals monotherapy other achievement to minimize toxicities. to dose-limiting treatment, many the with the potential be platform allow

that hampering extend an that And well mechanisms cytotoxics response the certain therapies class ADCs. elicit to established we're we Second, third, a targeted to immune aim resistance cancer. to new ADC innate and appear combat beyond of field striving entirely to avoid be

this our proprietary backdrop, in cytotoxic these avoid our payload, ADCs as being developed that's other is and or neutropenia attention Dolasynthen. vcMMAE to with used let's reported X When and objectives platform, was to the accomplishing statin platforms. in our core ADC on turn dose-limiting objectives, progress let's and we're that of platform making begin based we payload first-generation peripheral our a next-generation With neuropathy the with ADC that the

Our has is that effect, controlled permeable capable bystander payload of meaning membrane killing. it and bystander initially

in also designed to been has avoid tumor an much be is and the in it converted off-target that of However, resulting active enzomatically its to less membrane metabolite accumulation permeable, toxicity.

using can core we said differentiator While for be a same the Dolasynthen. the and platform that our payload payload, view advantage, as we're to deliver

preclinical and Dolaflexin, We against demonstrating the important have other our ADCs ADCs presented Dolasynthen using advantages vcMMAE. own extensive produced platforms for past, first-generation like data in platform,

clinical XXXX presenting provides opportunity begin to us the data. the with

as the at product of Barcelona discontinued antibody in week and known bystander otherwise Next clinical Gynecological European UpRi these candidates, with controlled of data presented utilized proprietary NaPiXb effect. Oncology, the ESGO, will candidates be payload same same the and Both Society X for XMT-XXXX.

clinical these our and other on UpRi ADCs developed and the and neutropenia, neuropathy with of affirm severe However, are in platforms is XXXX observed that uncommon payloads peripheral using based believe toxicity We help data developed was Dolaflexin frequently was to with trials Dolasynthen. that ocular payload.

We Dolaflexin. with Dolasynthen believe toxicities that also clearly compared they platform reduces further show

targeting our these clinical initial our Following for ADC. we in mid-XXXX, share Dolasynthen BX-HX data presentations XMT-XXXX, plan to

ovarian escalation as as with patients The is in agent tolerability a progress of breast I trial to endometrial be and we're positive portion tumors, estrogen solid receptor XMT-XXXX cancers. in safety well the ongoing. our of continue the pleased including Phase dose the single validating We trial with cancer triple-negative and as of making and

highest the XX established. we milligrams to Dolasynthen been XMT-XXXX which escalated dose that not clinically ADC. has recently A investigated just of for tolerated dose a maximum still meter have dose fact, we In is per with squared,

dose, we to in continuing continuing to the addition, are enroll In also optimize escalating and dose patients backfill schedule. cohorts

we're chemotherapy for a these enrolling is exceedingly heavily-pretreated population. Phase As of is prognosis patients, care single-agent poor. standard Today, patient the typical types their and for I, is of

For is months. instance, with in rate is late-stage duration X% of the response or than a response to triple-negative objective approximately X that be cancer breast estimated less, less

treatment. in for An breast and with most in patients early in ADCs urgent These that an receiving Today, factors are these ] of are shows TOPOX-ADC U.S. their are is resistance developing TRODELVY mechanisms. emerging patients share payloads data not do need unmet new HERX treatment. that presenting increasing here the cancer amount following first [ resistance their alternative

previously at to We midyear, our received looking ADCs have safety and X begin many in are to we're patients profile. characterize efficacy TOPO these sharing trial. clinically of Phase And data least so can I who forward clinical we XMT-XXXX's initial enrolling

Dolasynthen, for the believe frontier may we significant Now be excited and very ADCs. XMT-XXXX IO next while we're about

immunosystem risk to impactful deliver manner punch historic a power the of systemic by a stain the activating in in tumor and platform stain exposure. tumor-resident and cells, injections. cells stain of systemic also ] intratumoral minimizing in target-dependent while targeted X-X overcome dendritic Our of myeloid and the has designed platform [ and and agonists This potential the is free harness limitations to

I and cell to advancing In and XXXX. with a lung enroll in gastric, currently following Phase we this patients in on cancer, to We're range FDA process plan XMT-XXXX tumors, restarting trial escalation by XXXX. of in of HERX-positive trial clinical of targeting list forward dose of ADC. a quarter looking different our Phase colorectal of holds the fourth breast, we're [indiscernible] I, HERX the is lead non-small this the our ADC the including

and over remain Merck independent KGA these platforms ADC with our as maximize entered programs, companies have candidates. potential of to we to we Johnson, agreements also with product collaboration addition GSK. past much X In the Johnson engaged We very the and our seek & years, into

energy summary, and So entered XXXX in Mersana with excitement.

limitations we significant address platforms, We ADCs. differentiated think for could platforms today's that have X ADC

to me clinical-stage and X have the turn also data sheet. a Financial readout We point, to Officer, this on and call and upcoming XMT-XXXX DeSchuytner share Brian Chief differentiated Operating our let detail. latter more strong over balance On assets

Brian DeSchuytner

Marty. Thank you,

a quarter restructuring expect standpoint, of the the cash, Let's our million highlights is from prior fourth begin with approximately equivalents for was to expenditure efforts. from $XXX in we continue cash quarters, these and marketable operating to realizing of cash approximately for in year We XXXX, UpRi fourth down significantly Net the used which the XXXX. quarter activities and $XX From financial XXXX. wind-down ended million with in securities. cash benefits thanks efforts

are milestone operating current sufficient to proceeds support XXXX. our or be commitments from our current collaborations Please not into may guidance collaborations. from our that result, resources runway expected assume capital that a we our potential payments cash to does future any plan As note realize

revenue quarter of primarily compared income XXXX the million the was for & in for the milestone $XX.X Collaboration activities research related Johnson XXXX. timing achievement XXXX. fourth the of $XX.X to of to and in Johnson statement. fourth the early development million change Johnson & to a Johnson period year-over-year the was for same quarter Turning The of collaboration

in compared efforts external were costs expenses the million UpRi fourth in were stock-based million expenses, to to wind-down development XXXX, noncash compensation period quarter for related our approximately the to million same of included and $XX.X $XX.X recent $X.X XXXX related related and increased million for Research of The costs was and by UpRi R&D decline partially employee in to XMT-XXXX. offset line and reduced and manufacturing the quarter. related costs most reduced clinical in year-over-year the clinical in R&D to costs, XMT-XXXX, primarily $X.X compensation

the of were were for the quarter General the $XX.X same in in XXXX recent G&A $X.X in decline million to in XXXX. and in restructuring administrative expenses reduced as compensation and primarily was to a million The compensation professional for stock-based quarter. result $XX.X most fees million noncash year-over-year plan included the announced XXXX. we expenses employee compared G&A fourth expenses July consulting and Approximately reduced related period of during

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

Operator, update. from the please you to questions would open audience. our concludes call That business the

Operator

Instructions] question from first with Tara [Operator The Cowen. TD comes Bancroft

Tara Bancroft

And into that for from data the XXXX use can and to month, new maybe our on confidence takeaways platform what forward specific technology? data you we XXXX update. that the given take next could go coming increase So expectations based in XXXX specifically, are midyear the the

Jason Fredette

Tara. Thanks,

So the Jason. start this midyear data. and is tolerability safety that. I'll data be efficacy will

turn We over it is as haven't for I'll the Marty yet, the specified to but just show noted. question. exactly what second of you Maybe part the midyear we'll guidance,

Martin Huber

answer data so can set understand the I just questions, learn XXXX. on I your sure is ESCO from what And we I make

of from versus Dolaflexin antibody, NaPiXb the that, show would noted we safety the the is effects. our it's of And one, payload, demonstrates with think with I the is observed, we absence show the platform-related what scaffold, is same we had only we in be addition, platform between those other of lower the some the details we that toxicity. observed X the that show XXXX, apparent presentations. absence the toxicities continue ocular show to has absence plan neutropenia, what XXXX was will Dolasynthen. the as Dolasynthen, see UpRi. data peripheral data what or of But of an we neuropathy, the will in risk And to with difference same will And expect were also to the data

Operator

Partners. comes from question with Leerink Chang next The Jonathan

Jonathan Chang

And the are BX-HX remind just provide optimization? question, the the for the us just progressed ongoing behind previous has program? you be on on color with what could BX-HX you second-gen where question, can then decision-making enrollment can process the following study, happened how program? second on in the question, NaPiXb there up dose First then and And what lessons the any you

Brian DeSchuytner

but That Jonathan. sounds we'll like questions, in them you, Thank take X turn.

cancer, cancer in was to cancer. that is So the was the and explorations our much lung in than of prevalence the came as lower biomarker was original for program well. the lung reported in reported that XXXX, course by in over And we premise lung cancer with ovarian respect of literature to the realize

much, for portfolio, in drove capital XXXX. the cost And strategic to so given the that available of our opportunities and reprioritization very around us decisions other our

I'll think pass it the Marty XXXX I to question. respect to with

Martin Huber

NaPiXb are to the pneumonitis that is with we from is that was with of in type XXXX XXXX that presence the X for lung. learnings of pneumocytes regards And there BX-HX, and important both the X associated on believe observations

reasons we've and is of the on no set, any to One learned showed X [indiscernible] they the things the BX-HX. data from target-mediated there from of evidence expression from of of ESMO, at asthma see for not [indiscernible] And we look pleased pneumocytes at data level as that same the last were or the we expression BX-HX, toxicity.

to our we is important us for most we pneumonitis I the is set for and that forward with data So likely NaPiXb an learning target, think with that in look on XXXX. observed

With X. think regards to escalated I essentially enrollment dose we've now question, beyond your level

We are now at XX milligrams squared. liter per

to are backfills. enroll in We continuing the

As in we've levels. dose noted, at are these it's XX up to backfills patients

we the other QX as schedules. think looking alternative thing we've highlighted that are as at well I QX potential

And so schedule we -- to optimize remain continuing for believe dosing we're we XXXX.

Operator

Mubarack comes Citi. with Ashiq next The from question

Ashiq Mubarack

I on for guess me. Congrats the progress. a couple

You will specific moved tumor types second expansion the up be? I said when details the will starting what will phase? that at get XMT-XXXX cohorts expansion you share need and we data go-forward in running, are midyear cohorts update? wait you those being dose quarter. the the which for at those into for will And you're Or also point, guess to share

Jason Fredette

Good Yes. questions.

We're stay so space. operating We the predefined say haven't would tuned in front. a in on BX-HX competitive I that environment that,

So TBD on that.

Ashiq Mubarack

And on happened? misunderstanding what XXXX. [indiscernible] the gating up and but more It then sounds again, like to maybe factor already study just I'm getting you're is getting X running that wondering that's Understood. Okay. and

Brian DeSchuytner

We're reengaging the the soon back This to taking with required our sites. steps possible. underway includes as trial trial get as

made cetera. But that internal the knock-on then when adjustments, was and amendment databases CROs, and a et and effects So it's changed protocol the also we on process that other has dose [indiscernible]. some

So it's restart. stuff we're associated are kind -- Those study underway. of with a logistical the normal

Operator

comes Colleen from with Baird. next [Operator Instructions] question Kusy The

Colleen Hanley

dose it I/II how expect Are at with data escalation? then you the us baseline, BX-HX in midyear the the patients? the would but biomarker preselecting Can And remind you in of you're not biomarker Phase measuring any update? dealing we

Martin Huber

time, in expression. At data this pretreatment on point BX-HX are -- this gathering this is Marty. At we

display. the regardless However, the we outcome are using Patients that are for select data of patients. to regards With of not enrolled test. to

biomarker As data. data, highly a share competitive nor the we neither will a environment. their we judgment presentation [indiscernible] we note, Of Jason call midyear noted, we so in at data to that make or shared are Pfizer will and will not have

Colleen Hanley

and point on of kind how then at GSK And is helpful. That's Great. involved XXXX, restarting this the study?

Brian DeSchuytner

I'll take that. maybe Well,

exercised -- And they GSK, not So you that the an recall. with will have has product is option. option as

that that control And said, so pleased very over we're we partnership. retain been GSK product. in what very do process. has in And the we decision-making the engaged But with

Operator

The next with Kaveri comes BTIG. from question Pohlman

Unknown Analyst

on This Christian. today. for is I'm Kaveri

CDHX. And So Phase overlap much I of for tell question to Is and the be drug? us ADC. other answered trial [indiscernible] treatment is second XXXX what do you parts actually, you expect for into I the it the the ADC XXX, my between But question and previous to see thinking wondering. how current potentially fitting going as mostly of how STING such was combination some targets a for the you're Could landscape? BX-HX about

Martin Huber

any and is do XXXX, on to available overlapping. as specific The fairly in that those any But X BX-HX separate. a but while don't I tends no aware we're regards there be to you With data It's that this on says have not tumor is on far of Venn to be for overlap biology populations not the we overlap diagram X population have -- can't not, not today. point to know whether specific the data With we speculate in or yet, Marty. detailed between receptor PD-LX want I give trend at as data that answer that. to targets, folate alpha, the thing one there's do of time. wouldn't regards And

Unknown Analyst

Okay..

Martin Huber

certainly of the advantages XXXX. combinations do STING would terms combinations of that thinking being agonist a And STING, the of for having X with systemic regards allow think tumor-directed are We that, is other locally you to we to in treatments. with

normally for where too you because be able give not you STING setting combined activation, example, PD-X, really could be toxic For the to anti-PD-X just potentially would a an in with patients. would systemic

on activity to agent. And epitope we actual is X that long-term show different want for HERX HERX. strategies of will is that, but our monotherapy, last X it So is ultimately, think surely point combination a be the than the

combo. could, in a HERX you So theory, do actually

Unknown Analyst

can in it. Okay. And X Got just if I X throw there. last

for I if patients many how the will missed upcoming Sorry this, next in XXXX week? be but data

Jason Fredette

abstract available. For the I think is now XXXX, ESCO

patients. in so And data set, that XX there were

Operator

We Instructions] question from Schmidt the [Operator next Michael Guggenheim. with have

Michael Schmidt

compare tumor a types shown in I.? and have what it study Just how as a soon. term pretty views in we I initiate overlap end to how more been the Phase what just in or in think tox mentioned your And the XXXX. then differential of doing? perhaps general Pfizer longer to perhaps? on couple terms theirs? perhaps? [indiscernible] the expansion positioning to opportunities they I could Is high ADC on level, the think efficacy, on planning And histologies Any think study, decent [indiscernible] development Phase differentiation, of increased the about And just lower do In on you in had breast cohort signal patient versus Is mainly have you or that study you comment your the relative both they their cancer. -- is then sort your

Martin Huber

cancer triple-negative I'm breast Michael, are and take your going turn regards how I'm the to you we talk over With to with enrolling breast we're cancer, current endometrial the of term. to of the question, and patients thinking longer receptor-positive going cancer. to about data, part molecule first to cancer, Brian hormone to it kind then about ovarian

breast be on backfill, have X for more specific. after who is, part given medical is detailed in clearly, essentially of there's into as triple-negative And unmet of enrolling, couple we study. we I So need, we on area while the Trodelvy little points think escalation, is we in progress those nothing any an for eligible dose high not information which, of can patients be X are the cancer made a and/or of Once those a can get HERX, histologies patients.

many the population in of a our of data we So details have you not giving we're mean, will will -- how that is each, while that I set. patient

Brian DeSchuytner

the about we're Marty of see from that the can a validation ESMO you didn't those for just X any as types, expand and remarked data with things is in nice of a I looking your if that, And earlier, BX-Hon-target positioning, the efficacy differentiation indication on question both safety which abstracts. and the

And we've ADCs ACCs compared preclinically. can show that a efficiently preclinically As reminder, Dolasynthen extensively the we vcMMAE effectively. tumor our versus platform much payload to more deliver and

the other candidates appears payload or neuropathy addition, MMAE. to neutropenia product In peripheral avoid severe in we've for presentations dose-limiting that to past our our tend clinical be shown with that

what or means, do create so that and can combinations strong And whether in about what clinic you very lines ADC it's the an about to expanding regimens. when think earlier that's

I you much the of prior the setting to contrast are keep [indiscernible] GSK our very that class. [indiscernible] mind patients in [indiscernible] with [indiscernible], And this think that general, is many payload receiving if ADCs. sort in and in are

And the [indiscernible] commentary you so this believe of of around sort future in see in we that echos data. landscape, the duration and

also considerations program that into And relatively similar lines. combinations profound earlier have to the moves seems raises [indiscernible] myelosuppression and about

that established think by landscape that's data we ESMO been disclosure that leaves the So opportunity.

Operator

The question Truist. Asthika from Goonewardene next comes with

Asthika Goonewardene

to very guys make as of for nicely of features of some like design out actually duration be laid therapy had their your we at difference. different? response duration XXXX and confirm look could things clinical just it, a how the good And that's measures You

with is, X,XXX?" know to you a duration say, in XXXX given kind clinic patients maybe I'll for we of the treated difference about ask the would of in this therapy So what "Aha, of makes duration the response ADCs, of or some guys with actually what you is BX-HX looking be

Martin Huber

data to at sets to of the because number precise with is little It's relatively I duration on even fulsome just point in responders I is response Phase get a always of One, data looking pretty limited. Marty. challenging robust a always estimate sets put caveat would like

So on we development too on to be early want in that getting the program. careful about a little obsessed

from do by if of the way, we question. you a was chemotherapy X% However, very X That's post -- that And of agree that's important importantly, rate. HERX. objective than that's the And the or a current in the in for has control the [indiscernible] arm And it's standard care, months. not control think about duration a less it, even response not post response ADCs. arm

things, usually, of very the these X, [indiscernible], when excited X response X lower, the you'd overall, did were that we things the the X. to was duration a you'll of think from about in respond think I to -- patients over those rate the is is, So was about the UpRi we see data X months. things who One. Of like see UpRi response while that for

So there's increase opportunity DOR. an we to think

challenging just that set. demonstrate think clearly I to it's going in initial be the to data

Asthika Goonewardene

prior from Got when us out show that too it. wondering, resistance price you escalation [indiscernible] to the talked is an parse what much the how just any us and coming resistance days That's try in cancer very of I'm emerging payload exposure lot to and give of that's able that? issue payload XXXX be sort more patients the developing flows like in set does helpful. piece that's emerging about a is who are population. out breast efficacy up? or looks also data Or to of patient

Jason Fredette

Yes.

Jason is this again. So

did to we're for cuts post [indiscernible] transparently, the would to again, specific think into showed nor patients. in stage. this to that pigeonhole treated it responses commit premature not But I least a going at again, us TOPO of at today. neither not We [indiscernible] little any So be ourselves data

Operator

the next Brian We line have with of question from heng the JPMorgan.

Lut Ming Cheng

forward the plan a expense modeling I across larger Maybe think quick move from studies given first have And a indications. potentially perspective, is we into should on follow-up. to how of trajectory number your a about X

Brian DeSchuytner

then based Well, of our XXXX. as both question, cash our development you sort current on That commitment. the Sure. and I double-click But clinical on runway XXXX early our does in wind note your provide reported and in plan operating guidance remarks release our significant know, we is completed if include a down. of but our QX, [indiscernible], reduction OpEx we've you'll substantially forward-looking don't in the guidance, UpRi in that financial press since have and

to this meaningfully enable operating our commitments our think plan available structure we So going simplified into to funds support cost XXXX. is

Lut Ming Cheng

expect And XXXX. peers. provide those window your Great. also compared second you Maybe to targeting on compared you're peers, latest to the some escalation expected mg for to How square work BX-HX? doing does that escalation also your can therapeutic are then to per color who see you is XX on the meter that

Brian DeSchuytner

like of several different. potency not We of DAR like But antibody want is, these be careful it our or in and the Dolasynthen difference and they QX. we ADCs allowing end antibody there're what is the dosing but properties directly of payload, platform, less up different with scaffold, because have have slower about only it's then amounts has QX across having comparison molecule an a do addition, frequent our X with, payload approved like I drug molecules. in you to an differences a [indiscernible]. think the mean, for clearance on the half-lives, we either X, of is the it fundamental And that's associated because

try that comparison conversation. we data gets can full having then start to to it very So get do disclosure until we a and direct complicated detailed the

Operator

closing session. like Instructions] I over to would turn Marty Huber concludes for [Operator Dr. our to any question-and-answer conference This the back remarks.

Martin Huber

Cowen thanks, everyone, and at some as operator, hope at for next ESCO the you, Leerink. weeks you of and dialing to as see well in. in Thank of We couple

the concludes operator. that So you. Thank call,

Operator

The for concluded. attending Thank today's conference you. Thank has now you presentation.

disconnect. You now may

Mersana Therapeutics (MRSN) 28 Feb 242023 Q4 Earnings call transcript