MRSN - Earnings call transcript Q1 2024 | Mersana Therapeutics, Inc.

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Operator

Good morning, and welcome to Mersana Therapeutics' First Quarter 2024 Conference Call and Webcast. [Operator Instructions] I would like now to turn the call over to Jason Fredette, Senior Vice President, Investor Relations and Corporate Communications. Please note, this call is being recorded.

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, data, development include, to those execution may business platforms, our business efforts statements are to, not related and These runway. cash strategy, clinical could such forward-looking these materially to uncertainties to are 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-K and risks XXXX, in and Form on Exchange and subsequent XX, SEC our annual report February Securities

available Officer and update assume new sec.gov website, let Mersana's publicly future. Except are call, DeSchuytner. Chief we our President and discussion. turn Marty me filings we Our Executive On if Financial and law, Huber Officer, our as call at the no mersana.com. to on With begin information available even required Dr. Marty forward-looking Brian in by over today's becomes Chief to to that, obligation statements have Officer, Chief the Operating and our

Martin Huber

good Jason, you, everyone. and Thank morning,

As know, Mersana proprietary ADC based product an most of advancing on X platforms. you innovator candidates its that's is

our The utilizes cytotoxic payload. of agonist a Dolasynthen, platform second next-generation a is these the STING ADC platform that is Immunosynthen, first and novel

call Dolasynthen at with discussion Let's begin recently insights both about brief today's new that ESGO of and a shared we AACR.

Dolaflexin. know, platforms. those that to At significantly congresses, our that as with As and ability these we Dolasynthen's well events platform, ocular other preclinical peripheral platform-related leading ADC clinical first-generation limitations you neutropenia, demonstrates data believe adverse as ADC own of many toxicity platform-related of key we neuropathy we severe reduce types off-target presumed toxicities saw today's have served for as and presented

in other isn't of greatest both ADC to and the simply order ADCs. monotherapy with ADC today's and approaches of door to possible to platform Ultimately, efficacy something chemotherapy with our That's that approved extent is the reduce open to standards care. goal combination maximize toxicities possible many

cancer targets triple-negative tumors, that that's the of Dolasynthen to solid our checkpoint tumors breast ovarian midst literature expression. markers. clinical on a ER-positive is limited Now let's BX-HX is in expressed healthy BX-HX. XMT-XXXX, of a of scientific including We're immune Phase family suggests tissue and lead ADC cancer, cancers. the that selectively with and move with trial patients BX I in BX-HX endometrial The enrolling member

signs our Additionally, we any believe competitors. have us We dose by Dolasynthen's toxicities platform the helped have selective the and not off-target presented ongoing expression seen clinical trial. on-target clear data continue in of to advancing portion of BX-HX reduce toxicity escalation ability our

the or exposure identified preclinical XXXX. clinically levels beyond are for And a either thresholds believe maximum established activity. dose key we Based that investigated to now previously with platform. clinical tolerated are Dolasynthen models, we we on dose have We our still first-generation not have

doses our leveraged schedules the clinical have that to XXXX also We threshold. increase above time identify and for data this exposure

emerging biomarker later Additionally, in on progressing we of preparation BX-HX the stages space, are development. data expansion and strategy based in for also our

to advance position a objective in and the have continuing to escalation to backfill expansion announce parallel this now We half trial, not second Given dose yet maximum to year. dose expect optimize of established our has clinical be that responses we schedule tolerated in been and in our data been and initial in cohorts seen this dose, and biomarker. are a initiate

we to positioning needed the at as XMT-XXXX are asset, time accomplish potential this of All work and our objective. taking a best-in-class is aimed

developed to Now lead XMT's Immunosynthen. we let's candidate the utilizing is shift which XXXX, are

epitope XMT-XXXX that's trastuzumab. pertuzumab targeting one-two activating both designed deliver is of and and a is ADC tumor-resident distinct to target-dependent HERX in STING in cells a platform novel Our punch in both Immunosynthen cells. manner a by tumor myeloid an from

paths to combination advance there the believe So combos to our a of treatments intriguing is XXXX, as with goal of clinical other dose potential with may portion agents. of said, a its pursue near-term HERX-targeted in we XXXX. That for monotherapy, escalation to range our addition trial I including be Phase

and of colorectal now and patients HERX-positive are with actively sites breast, we're lung gastric, range including a open tumors, recruiting non-small cancer. clinical Multiple cell

In these immunosynthen progress KGaA with have with continue discovery efforts. lead we on with discovery & in the addition collaborations to also efforts place programs, and we Johnson ADC focusing Johnson Merck making Dolasynthen for

update. and With Officer, that, to Chief provide a our call to over the DeSchuytner, Financial Operating let's turn Brian financial

Brian DeSchuytner

Marty. you, Thank

securities. the get marketable starting of the balance We for cash $XXX.X XXXX, in equivalents sheet. quarter first cash, the Let's quarter ended into million financial with first highlights and our with

We into support that our our does plan continue from potential not payments current milestone may collaborations cash guidance runway note that to proceeds future our any available to our commitments operating we or from funds collaborations. realize expect XXXX. Please assume

related $XX.X & the Turning the million activities to Research for $X.X change income development in the expenses XXXX research the quarter period to the of $XX.X to the and timing Johnson compared for collaboration revenue for same was Collaboration million compared to for Johnson of period quarter XXXX primarily CMC $X.X to statement. million first for significantly in XXXX. the agreement. year-over-year million of first and The was declined XXXX. same

expenses XXXX. related to clinical R&D manufacturing For costs of reduced decline compensation. stock-based primarily year-over-year of and recent July approximately compensation and the announced reduced to spending quarter, UpRi $X.X noncash the this for million was in restructuring we related employee with following The activities associated in was

substantially Mersana's business loss stock-based of in G&A million That were restructuring. administrative most would from The recent of XXXX the update. declined to year-over-year to first in incurred to expenses finally, the loss million compensation that complete our reduced $X.X And significantly concludes for fees $XX.X open quarter. expenses decline restructuring same compared the quarter to General net reduced in you our in a call the now and compared the professional of in with period XXXX million Operator, for during meaningful consulting please note first $XX.X and XXXX. $XX.X to expenses the in the no Approximately is Please included questions for $XX.X QX. related was audience. primarily compensation for employee this million XXXX. following period G&A and expenses net costs million noncash quarter was same

Operator

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

Tara Bancroft

could to remind hoping changed the especially was from bar now the your you us that for time, you what think I reiterate expectations second And over of data? or has So going half? with XXXX the midyear the data exactly And at all is?

Martin Huber

in tolerability. data specific that safety, be competitive biomarker few environment be data would included these other meaningful that for provide do BX-HX, characterize you that set, efficacy into the anticipate backfill a data like our as We're the this would will Tara. addition, you, not well we set. as to dose thing are well looking said, as are in in providing with we preliminary ADCs development. very That One remind about Thank but totality we'd escalation and clinically details any data well the initial clinical what of in we the so data as And populations. can that as we

Operator

question BTIG. next comes The Instructions] Kaveri Pohlman from of [Operator

Kaveri Pohlman

would release move of making what any decision additional define based selecting second you may And your go will there us the the the safety Are tell PK/PD on data also to you're backfilling defining just PK/PD the dose alone? Also, update. be I doses do dose optimal MTD planning to you dose alone? during to you'll high on and/or be and on optimal appreciate the profile line decision to Is your to you on if it provide how you cohort. time data half? can color based Can

Martin Huber

remind escalation think me I I'll one your to I in is MTD think timing out of got And of have you established I but don't you if guidance many don't capture on for of XXXX. still line, when of know them you're I all how the studies regards going not them. challenges the do we With an order, one questions. to -- dose the set please to try we the doses go. time exactly

a requires schedule is, additional is we're for dose. on thing more more cohorts. as And well apparent each time ADCs other The think I little those of what's spending becoming as optimizing

seen into level. specific as is With to others the that have flexibility Optimus really we the types oncology we on optimize based that and we've think in backfill question, dose backfill our and dose tumor in Project I expansion. enroll to So want -- schedule regards to go we cleared with we've these recently, before once

have an well core to your as not sure the we you like doing based but make feel say, X, on in plus PK/PD, of we're design it confident reasonably have for and opportunity specific is to have to some we have enough evolving would patients kind sure sets I any think tumors escalate to making high going explore, interest So question patients X more comfortable on dose as get really TBD. more we I while of data regards to level Phase that's an an because MTD, about to be the of dose, dose the as given sized whether dose. it's data. MTD establish will we your the any continue the II will to formally to With at but mean I that than not we are with recommended but still based to on established

Operator

comes question Jonathan Chang Partners. from The Leerink of next

Dylan Drakes

This is on Dylan for Jonathan. Drakes

And you have tumor those around you then second a some the initiate can. any expansion indications? one, seen as I outlined view expansion competitors in efficacy previously potential to you plan thoughts types cohorts? you still do Do where BX-HX. So have if Or further

you You profile what look with therapies. on guys enabled where Do guys on mentioned also evaluate the call look any potential like are improved could that or previously that safety that? XXXX may today you again you additional to the seeing combination that thoughts and have

Martin Huber

and hormone are -- highest We're friction on further the What we -- types cancer. initiate goal second not in are are be cancer, At the expansion and be while tumor focusing we're cohorts on us provided -- shifted on expansion guiding they have types will question. those second escalation exactly is half, would for cancer, breast most the the interest tumor tumor to the and of haven't point types. which those backfill, with. any going this receptor the we types. -- one into of tumor in ovarian on of focus negative not breast Those one in start me the to We Let we exactly have detail but positive type that types initiating expansion. least because that remain half. in we at X we're we HX But still details our time, an the going level endometrial the tumor tumor the will the triple

the and your the with and Dolasynthen we're pleased is like the data particular you, this and and I very we the ocular second neurotoxicity to profile, tox, the what regards remind safety point was think neuropathy neuropathy to we'd about With avoid a interest. is

for For well to data that ADC with combine example, if chemotherapy, to given a with that were to our in would, or not evidence NaPiXb's, can't meaningful we've XXXX potentially we're with platinum-based myelosuppression. assuming that wanting as allow date replicates have UpRi causes not We're shown of as an peripheral allow you us seeing -- you us you neuropathy, profound seeing which theory, the do combine XXXX also platinum. if neuropathy,

that combinations about that with think could with a Trodelvy be breast you potential we if not are would something myelosuppressive consider cancer ADC. positive in that So

X on combinations. are of those So thoughts just the couple

Operator

JPMorgan. Instructions] question Cheng of Brian from comes [Operator Our next

Lut Ming Cheng

optimal any Can schedule? factor related there far optimizing extensions? efforts biomarker you you provide comments to How elaborate for behind are identifying XXXX. on those the moving schedule to gating that can and before on today you And specifics are your from prepared

Martin Huber

we What in of MTD. ranges. relevant clear responses, one make we -- want seeing reasons we not to are were it clinically an we did we the dose is still objective established escalation, dose I is think that are We important mentioned that in

we is And is highlighted matter getting a of there's we that previously important. kind is in concept those now focus. understanding have confidence just do over this X do not the together, with as the focus high exposure we're we our come the schedule. that's degree And also right. data And studying dose in out kind have the right. on so other dose And of We it's next so that prepare thing of if it's to our had And than only PK that the but of better you the that the time over cohorts schedule when you evolving understanding get of set, a think a I data. that put how of we really

Operator

next Schmidt comes The from question of Michael Guggenheim.

Michael Schmidt

last you're a not level are just were time is XXXX. Yes, I you guess, that in from on had different there yet follow-up what MTD? I said PK think dose surprised seeing expected? you you X. And you

range curious that I'm be this or on point. far there's But dosing this the just part if regular unique You're just at going has of if is anything Project to workflow active obviously into Optimus the done.

Martin Huber

think there's unique. so I don't anything much

think XX milligrams had gotten I of things was our per at square. dose-limiting the NaPiXb with ILD we have one Dolasynthen, we XXXX, hit meter

we -- that As as we've over stated we're last told now. time,

-- our right is on we're haven't when careful the do dose optimal we our half-life PK, to haven't see is at you on always it's antibody-like we and And ranges want that we And trying you into fine-tuning. we've understand to that you're So XXXX account, be what before schedule ranges but molecules, when provided we've stated take been into always exposure, get been our previous that on as think I new other before, some think data the I the confident for in molecules. to thing always a platform. dose

on Optimus, comfortable you did. historically, have would to your I that go have And change straight dose is we you expansion. with, factor a And dose, into to final just point Project get you're because the very a if comfortable think been

recommended we I to have the higher want that this Phase current of take confidence think degree expansion. a environment, II we in into dose in

this did. for think on historically lack it myself -- personal has energy time a bit optimization and more and appreciating growth is the a for dose I -- So is of we little than just been a

Michael Schmidt

also I as in looked it Yes. is I? what think, are No, weeks, comment different multiple every think have companies makes so that alternatives? I sense. at before Phase Can And you at schedules I other NaPiXb. selecting -- think X you And looking the

Martin Huber

is we What doing. we but which alternatives, look given X currently weeks flexibility weeks, to or us every has every the disclosed the previously X at are protocol

Michael Schmidt

in we that triple-negative when look in presented of at nice recently cancer. breast yes, R&D their was biomarker-positive data very Day, enrichment Pfizer obviously then, activity some And they the at saw patients

it twice think in patients. almost was I response the positive rate

look for development. based just I'm a are other approaches might so there Would expression. like think, And for use you an things curious I could they similar, IHC at assay? that any your consider enrich what biomarker you Or look biomarker to

Brian DeSchuytner

Yes, any our we regardless of at relationship maybe that. not To enrolling I final decisions can on great between about BX-HX it the strategy. response. a question. We're ensure stage. currently the fully we've this and take status. made expression biomarker That's patients probability We're working understand of And biomarker

test think an So in we other establish words, we are But to retrospectively running levels. the BX-HX will be nail that. important of an to program really this IHC part expression development

Operator

comes Asthika Our Goonewardene question Truist. next of from

Asthika Goonewardene

year. level square. previously, meter That asked as or around Michael So was XX X in well just about dose mgs per QX this what here about

in seen ask than Marty, more let And have right confirmed how So then be reached and patients? have me just above many cohort? this responses, that levels direct you seen dose dose you've today you that, in you said now X

Martin Huber

the into data. We're dose of either or getting the levels response details not

it emphasize make an you at But actual with administer start did you're purely we that. at dose not We there's relevant little schedule, less the dial of total the looking number from on that frequency it. think looking is I a you only do -- can but dose becomes which what responses. exact I you because administer, is the when sure dosing And you think the intensity dose regimen. ways focusing both

into and exactly we fairly is understanding is schedule what's dose-intense ADC not the But I a of what details competitive to something dosing part are approaches And So is we're those looking dosing at think important is issue. competitive more that this a of that the space schedule. are. is getting

Asthika Goonewardene

it. Got

Okay.

you should since or one-offs. looking tried it so read thinking QXW should already more the that we And QXW, of creative other some you've I QXW, into specifics? might X, getting like that how about be Is at be without X approaches

Brian DeSchuytner

Asthika, into I'm getting not really specifics, We're Yes. more sorry.

yes, there stage. So at not going just this we're

Operator

from [Operator of comes Mubarack Instructions] next Citi. Ashiq question Our

Ashiq Mubarack

biomarker already one, looking I'm which I that's IHC. a on you're is versus maybe based that BX-HX at to correct first something confirm else. biomarker is addressed think you just assuming my the

correct, Or might you and assay? ground that's an that you do the the mean, been where robust building up in development be? that's is established? from are asset Assuming I something something that of how think that you're Is

Martin Huber

We're getting not into IHC. details our of the specifics It of the is biomarker.

in we further I a to think data biomarker, it and what can cut in optimizing of biomarker does is dose the the a can is et the we've reasons time that. we say little the are confirmed allow in more right to what I point, But to larger -- addition set one what define as think of understand is right generate patients which optimization we dose-escalation us such taking is cetera. the

using So that go are into these understand backfill dose patients expansion we're escalation studies. for that helping us and as pivotal we

Ashiq Mubarack

And one second the sequence Okay. That's the very more of in events of clear. half on year. then the

the the to your half year? of this then data. cohorts initiation is to kind I plan think in share announce the the expansion of at going before be of second all was that thinking? the Or once still the now Is and

Martin Huber

Yes.

We predefined that. haven't

both for the entering it second guidance just shared we've at data, leave sharing going So the expansion half to being. clinical time we're and really, that for

Operator

Kusy Instructions] [Operator of Our question Colleen next Baird. comes from

Colleen Hanley

biomarker Are second to types? one in confirm the half data you're tumor be the the will just you multiple able whether multiple clarify or update? data then you can And in are responses seeing whether

Martin Huber

Yes.

It's be very made that today. in But to at. shared going decision responses. I we're what commit later not a something that looking will date. already not say at would And going of biomarker, to than we're closely Colleen, on the So specifics to that we've we're give terms more

Colleen Hanley

dose expansion? select cohorts, an for to run would would the plan multiple for then Or expansion you levels one? just And Understood. you

Martin Huber

in are At of that more do timing really the think point think be when The to Optimus to the point will something time, in time, exact us of at is TBD. one I option you it. going in some I the flexible, multiple we that's Project than this And you have gives still that is dose, protocol that doses. study will environment, considering and

need -- should can. expansion, feel think do we we do that we we option have but I the to

Operator

question comes of The next Asthika Truist. from Goonewardene

Asthika Goonewardene

Is now? this higher to but alluded Just step one a most just pushing I level quick want the What's already, kind one. think exposure? or right of you to to next important it I optimizing confirm. dose

Martin Huber

an an and it's both, really, of is I think better we it's to understand we're this drugs in that's focus work, but exposure element really getting of further have now dose going expansion, point on modify confident view from we're when that most -- it take our how -- as schedule. the our optimal not we that That's ultimately, important. dosage into what's really it to

Operator

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

Martin Huber

you, for and thanks, Thank dialing operator, everyone, in.

that have Goldman the we'll you. And as taking be some well next the weeks, Oncology call, place Healthcare at Cowen several at Summit Sachs the as that several to there. of see investor Thank operator. events you over are We We includes including hope conference.

Operator

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

disconnect. You may now

Mersana Therapeutics (MRSN) 9 May 242024 Q1 Earnings call transcript