MRSN - Earnings call transcript Q3 2024 | Mersana Therapeutics, Inc.

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Operator

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

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 to candidates, data, projected development statements. include, to those execution such risks may these in differ business platforms, of materially could our business efforts results and statements uncertainties are are cause to, not related and forward-looking that These statements runway. Each actual subject to cash strategy, those clinical from Exchange with Commission our in August These risks the report Form in Securities XX-Q are and and and XXXX, quarterly filed filings. on on XX, discussed SEC uncertainties subsequent

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

Martin Huber

both Phase and clinical you, to pleased Mersana that dose report we in everyone. in quarter significant morning, progress escalate our Thank to made the of continued XMT-XXXX. I'm trials third good XMT-XXXX Jason, and as I

squared a opportunity ongoing of We tolerated milligrams dose to dose. We multiple escalated X. XXX of our squared believe profile per both up ratio prepare ADC to ways. portion in established I limited our the event and to Dolasynthen for milestones prepare kilogram to multiple was developed Dolasynthens every any the We to reach we speaks is are The level prior weeks. the refine ability escalation disclose balance X meter the our end dose biomarker recently differentiated continuing maximum have strength initial healthy stages and BX-HX bioconjugation sheet. This ADC mentioned our the that the well collaborations, clinical its about last this schedules in differentiate has of by achieved tolerability candidate clinical also Phase we later to landscape is platform and doses Mersana's call, per and XMT-XXXX broader frequent highest We or on at X.X our with meter well of our milligrams of more us still work, and of not we from with parallel site-specific investigated for drug-to-antibody ADCs. it BX-HX in These of research to our to we we investigate expression is XMT-XXXX, per a strategy dosing within beyond using we development. escalation milligrams company XX a as targeting expansion dose with maintained dosing to we're and trial the our this accomplishments year. XMT-XXXX working tissue. In data position believe and conference

turn trial enrollment Mohan share over of more the on. are we and me to our Officer, indications our one Development Chief Let on color call little Bala, in the focusing a this to

Mohan Bala

Marty. Thanks,

of address ADCs the recurrent, U.S., portion of BX-HX. being express important cancer. Today patients endometrial most trial is include exclusively quarters X topoisomerase-X That of said, with We in of unmet cancer. these it HR-positive conducted being types. escalation needs has enrolled patients for tumor each pretreated ovarian U.S., the very and These frequently are our dose believe breast the used cancer, have XMT-XXXX in the Phase heavily that commonly in cancers, to negative, potential cancer. our breast about patients reminder, enrolling a As patients cancers the is with breast and I with and XMT-XXXX triple

one prior have fact, cancer negative and or our patients half whether at about be ADC, breast been HR-positive triple patients with TOPOX of least it approximately of XX% In Enhertu. treated our Trodelvy enrolled with

I We have exhibiting The a has prospective concern to Phase This a urgent none competitor breast reinforce a helped X that cancer demonstrating had an XMT-XXXX ADC. for treated payloads TOPOX fits that's previously in with to TOPOX discussed were included phenomenon need for develop this BX-HX significant profile. set developing resistance data response the objective data inhibitor. with previously TOPOX These same And by body patients payloads. presentations first a retrospective September, been become data competitor's the notably, patients presented of physicians. At who growing the non-TOPO ADCs to achieved and ESMO the the in ADC.

ADC TOPOX San treatment. at the preclinical antitumor Annual new presented data, week, we XXth demonstrating in XMT-XXXX's last just Diego, fact, following World In activity

what the arm a received by breast patients for late-stage And generally care it's have cancer exceedingly who the for today of TOPOX already control in poor standard prognosis is these evidenced TNBC. chemotherapy. So the in patients data Well, for is ASCENT single-agent Trodelvy as for trial ADC? with the

best potential the enrolled trial patients to as who with ADCs. case naive were Importantly, TOPOX treatment ASCENT be this a may

to Marty. back Now,

Martin Huber

Mohan. Dolasynthen generate that potential have tumor year, ADCs. clinical of to previously Thanks, demonstrating the potential its TOPOX have other believe limited antitumor multiple ADC who the our course shed will light including on for ADCs shared the presentations and data of activity In past data patients types, toxicities in received across initial have XMT-XXXX the platforms. over many We we avoid

our at safety, this of dose present from and year. efficacy, event initial the tolerability, company data to a expect end biomarker backfill We and by escalation clinical cohorts

and differentiated well antitumor would and ADCs. safety is activity dose hope relationships BX-HX the the to show side, antitumor on other that to expression. And On a profile we efficacy as between expect side, as the we from activity characterize

also this to expected XMT-XXXX of of portion the Phase we clinical on I of our trial track expansion remain our data the addition to by end disclosure, In initiate year.

focus that TOPOX have previously be In at for already received first of with expansion who ADC. fact, we cancer breast least will patients area determined triple-negative our have one

we would may not other be profile for believe in amenable Beyond XMT-XXXX's a to with combination pursue. that that we competitors potential able including would as demonstrate hope our combinations be a monotherapy, use to agents,

ocular severe As with a of risk adverse neuropathy many standards proprietary with are neutropenia, peripheral are payload certain Dolasynthen from reminder, the of dose-limiting today's auristatin to of been ADCs a and combining toxicity. due to events toxicities. care overlapping shown has These preventing of that types avoid equipped ADCs clinically

ability let's which leverages to targets opportunity agonist turn HERX immune XMT-XXXX XMT-XXXX. proprietary This Now, for innate STING Immunosynthen, is candidate novel lead developed development believe our utilizing that was and novel offer payload. ADC a epitope, we our platform with that stimulating our signaling growth and took we demonstrating week, at low place monotherapy doses. activate inhibit combination both XXXX, as which other HERX. At presented a to very SITC STING therapies, tumor those last preclinical and data XMT-XXXX's target in that including new

Eligible portion with include remains to Johnson range those core and tumors, continue dose strategic We a the business including and our breast, cancer. And further a both KGaA. focus colorectal progress gastric, escalation with we're finally, Merck this of candidate. & advance lung our Johnson for making development trial of Mersana, HERX-positive I and cell Phase patients collaborations non-small of in

in collaborations this area were most exemplified in efforts under we quarter. Our recently these third milestones by the the achieved

things our financials, more For over Brian. to turn on color a let's little

Brian DeSchuytner

Marty. you, Thank

equivalents our and with with million cash, quarter marketable We $XXX.X balance begin third Let's cash ended the in sheet. securities.

lower future collaborations. Net commitments XXXX. Please current will operating earn continue a milestone used than including payment ago quarter or million, that, reductions our implemented second operating included guidance quarter. the milestone The for that restructuring our cash for collaborations from activities half of We that plan of proceeds the and current used benefit our $X.X we expect may used $XX.X from as XXXX note may realize primarily our part cash in the from in which activities decrease manufacturing future as was the the an J&J. to $X net the was million cash our our from million activities XXXX, in third $X.X reprioritization the support operating reflects payments into portfolio of capital as well assume QX million J&J. Net runway we does cash significantly payments OpEx resources during payment we in any not year of efforts,

Merck was related million, Collaboration third our $XX.X for quarter to Turning the million The the of in and same income to declined revenue million million was $XX.X for KGaA in period for of to period to recognized significantly the development the compared $X.X compared for XXXX XXXX. year-over-year the change $XX.X to statement. and primarily XXXX same agreements. Research increases our third under quarter expenses collaboration revenue in J&J XXXX.

same related to update. Operator, quarter in stock-based following For and with employee compensation period loss to reduced That year-over-year recent was to our questions ADC year-over-year in our expenses $XX.X UpRi finally, for administrative during expense the spending reduced fees activities the million compensation. compared quarter. in from for please The would compensation of and to most reduced most completed loss to net noncash the for declined XXXX. $X.X professional XXXX. primarily substantially associated reduced and this a quarter was decline audience? expenses period R&D business expenses G&A for million restructuring. And restructuring recent net of $X.X of we related employee quarter, discontinued consulting $XX.X of million million Approximately stock-based XXXX to following $X.X costs the primarily third was approximately concludes clinical was same call the the compared decline $XX.X you in and our expenses related development in XXXX. General and Mersana's included were the manufacturing services G&A for million the million in in the open non-cash third compensation XXXX to The

Operator

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

Tara Bancroft

really see. of nature It's disclosing thanks So, for patients the to bit helpful a little more. the

what effective benchmark what do from we are you've any are guess here how I ADCs, I'm most post-TOPO versus I is besides there? should since mean, Astra, thoughts which -- BX-HX have seen not, how updated this on that which, course, enrolled, not was So curious of other about you we've patients

Martin Huber

to data benchmarks ORR. any patients doses the recognize doses, that, has specific recall, are doses their still with as out Pfizer at understand data. their take I are providing not those the there. China forward. HNO of rate We're they'll was which mean, We've there data, the XX% shared which, which guidance other exactly We response on a trying do you we're seen

those patients most a had So prior -- of actually did in patients. And recent they a we patients TOPO. breast XX seen AZ while of cancer, out doubt in data, they there pre-TOPO X show was none treatment those the in heavily

So I between nontrivial that those the benchmarks think we it's are think populations. the but out -- there, there's differences are

is for is So exactly into to the at difficult predicting time. to one for us in point get benchmark this right try little which us a

Operator

comes with Chang Leerink question Jonathan from next The Partners.

Yen-Der Li

This Jonathan for is Yen-Der Chang. on Li

XMT-XXXX. question So my first on

expecting dose So for as to And them efficacy biomarker update? patients see you what is the how data percentage evaluable many consider initial are at of you the positive? would

Martin Huber

that provided later haven't Well, But questions just Yes. on to year. will this good there. date. along with That shared data information the we actually, be

So today haven't we gave but expression. patients the we've gotten prior or numbers specifics specifics types patient of into we enrolled BX-HX on on treatment, some the

think retrospectively. you we're I to and all As And batches. get at in that know, data the information tend we do BX-HX enrolling looking comers

share when do be data, don't So have the expression may what but share we have. data even BX-HX on, where we patients there complete we'll some we

Yen-Der Li

mentioned Got previously you're more than you've And X question weeks. follow-up that it. frequently is schedule the another every evaluating I dose is that have that,

more relatively are into dose this every escalating to as So cohort? frequent well? performing more to insight provide frequent cohort how And continuing X-week could you the is more dosing you the

Martin Huber

schedule. core what we're is schedule dosing Jonathan. the you, -- think every shared not on do kind X have into we of of is the We're now weeks. Thank that the What of I there getting we details

on performance on more that at we're dosing one squared meter to So split -- in that's of X. What milligrams this those XXX frequent at we're -- doing now. relative we're today, any different not we're data sharing doses intervals between. we We're where looking we're per the up dose the

the have will that et data be but we during the will share describe sharing -- set. as be correlation We activity, not, we what going noted cetera, we on dose of when part but we or data some with are is to script, a there

Operator

comes Charles LifeSci from The next Zhu question Capital. with

Yue-Wen Zhu

TOPO ranging progress. provide lines of I additional patients treatment some ESMO beyond for Phase XXXX question, at the X like Astra. commentary the almost from BX-HX read see patients? looking naive similar what have with at Phase clinical X your recent out are a as TOPO it versus to Can readouts between median prior ADC breast on number any you'd cancer your to on color Congrats what inverse ADCs, experience? And AstraZeneca recent the seeing conference. in we've what for question make handful therapy first you also to up a looks expect as like I you an high-level patients for of you're My the Can history any respect experienced TOPO to well, regarding Pfizer of seen prior the who naive, lines you

Martin Huber

start Well, We're is this not the and outlined, the Mohan with that. pretreated lines I'll therapy. population, as providing we will detailed describe of a But information. heavily

to I specifically TOPO think important, prior data one be call did kudos that give actually their some AZ, the things out set. of exposure and will we'll in they

The even shown others haven't that.

So it's number are that treatments I not very what only a think lines, important. it's of those becomes

in was is out of got to line. now them and positive late started hormonal a patient you're receptor a relevant if a that X hormone example, how lines using that cytotoxic For therapy,

patients of as these seen the So I it really is have understand think ADCs. nature to of the specifically, well, treatment important kind

lot. we is we've part investigators, heard say, And what is TOPO. of the ESMO as the had think they naive? TOPO a data more patient with TOPO they heard feet. patient and I had around interesting second experience, seeing retrospective essentially, voting already halls aren't from prior that based we on want from have And of in is TOPO Why seem with that we AZ And the nobody TOPO payload were decided to have breast? -- wandering how guys The anecdotal things the own observation. a one KOLs an their after you they're it and their has seen and don't They a

hear and in population. others non-TOPO investigators looking from for or this they they that we So payloads our is novel the continuously things of are could one payloads try

investigators So something need up than that us the I think we're with population. accident it's not TOPO we an payload. ending different telling It's this a patient

Yue-Wen Zhu

about be for where XXX push is Got specifically free up circulation to talk beyond squared, also maybe you there continue it. you potential versus reasons as per so may you the potentially meter even can why as retention payload to scenario dose you high, dose push Great. like And dose in you'd things And expansions? dose escalating able the and payload continue to also around ADCs? intact mg a initiate while

Martin Huber

ocular I do second one we designed Well, back. to seen core and our tox. And going by I when the neuropathy, avoid you've with UpRi I'm from limited mean, molecule to first, toxicities. neutropenia, this as previous we I'll our weren't was mean, hypothesis avoid XXXX, come those avoid data and

right some in to reason so able it's escalate the of he ways, our then you molecule avoid validates -- And Tim, to continue Chief the doing Technical kind DLTs, we're if is is was to those our hypothesis and that that. Officer, designed

that time. initiating the we'll anything, point the we be be mean expansion? prevent with data beyond the of will doesn't at thing. us will XXX what this we that is data share that Does that No. there's that we of driven part in -- could Now not regards, the have, and nature upcoming by do With safety and go from

designed we into least probably in Optimus in era get we're important take the can you at take expansion. X going to of the fact, current have is doses substantial of that -- That's -- kind We protocol Project is data. way the

same would be a for the second very and to with dose it in us on one So later then with come study. start easy dose

would we a expansion escalate, if to initiate continue decision. So we to yes, the if data-dependent we And can us escalate. but -- allows the escalate, is direct do data answer that's even

Operator

next Ashiq with from Citi. [Operator question Instructions] The Mubarack comes

Ashiq Mubarack

prior tumors? lines? I still fair are at to have target the plan? any the the of differences kind it plan patients Enhertu used ask, on Trodelvy. then and between any in XMT-XXXX whether prior effect question all line? appreciate you to thinking But to in breast on triple-negative wanted me. development assume if to of got long-term the Is here. TOPOX the that is you depending leave I thoughts How gynecological in should for Or last we is of prior that know TOPOX not competitors ADC that in a updates I Enhertu was focused moving which majority of of in use about to just least the as part line? And you are expect versus

Martin Huber

an give TOPO and to it Mohan types patients to is over to are receiving quick talk different I'm going a I'm turn development. of ADCs antigen about the to our answer then going gynecological the kind answer of the and this not the short But hypothesis difference. is

ultimately, resistance. even topoisomerase-X. are targeting more Trodelvy, they're And probably there they though different, X inhibit of mechanisms, versus known Enhertu there's So

to for them. from One of TOPOX of switch those, TOPOX, but they both that's

imagine not a would we difference. So

of mechanism the get resistance basically would of Pgp other potential is payload. The pumps efflux

our not a As is reminder, payload Pgp. substrate a for

which kind rest be occur, able to no turn to those mechanisms the of the of we both are of question and gyna which I'm your the most So Mohan overcome those. of to development. both the matter to on molecules of And population over expected address to should commonly resistance, going it

Mohan Bala

Yes.

with not think in triple So, well. right? talking of of in kind is the have earnings I happening negative. landscape. the of of Gilead breast market maybe treatment standard our So patients call can but Trodelvy start pretreated care kind you They specifically about what's kind bigger trial, the in cancer chemo this I as see share. probably the from

In the are and bit physicians patients increasing the split of And then Enhertu, hormone more and preference pattern treatment it's of positive, kind little some subsequently payloads of also about seek is. what alternate right? But targets. -- kind with for I'm talking is general as those a to treated said, Marty alternate between

-- of sorry, kind And what the was

Martin Huber

Opportunity in gyna cancer.

Mohan Bala

Yes.

kind is both if And in right? and shifting I checkpoint because in, there's endometrial, inhibitor care The the that. in endometrial And of treatment population, MSS say, is inhibitor frontline. chemotherapy But once get treatments, of checkpoint treatment no patients most get will second open think with line. -- frontline. get with to a of in kind you second/third-line start they really kind subsequent don't an both option space frontline those future, the now standard to clearly get it right So you completely good I'll of

an that hear that opportunity beyond platinum need a is treatments in continued platinum So cancer, of we So can But there and need of of the cancer kind right? is the in are of high, quite that increasing for therapy, with The ovarian though, of treatment novel is the platinum-resistant platinum-resistant, right? there's clearly are in therapies lot kind treatments actually and kind development combine clearly, there big. competing space, of lot that unmet endometrial many completion in unmet platinum-sensitive a then in where are platinum-sensitive space. the developed either in even there's treatments being not this. In

Operator

Schmidt comes Securities. question Michael with next The from Guggenheim

Yige Guo

This questions is on from Yige for Michael. us. X

the The positive. cohort will I expansion Or any focus you first Wondering, like of part as on to one looks a based also consideration? have is in on the preclinical And rationale was observations relative triple-negative it follow-up. first such expression? then HR clinical BX-HX

Martin Huber

perfectly again, the mean, the or going It's with Trodelvy. be to rate reason quite payload and which into is Trodelvy, is agency patients is ADC, to, be that's getting once just once is that where low, Okay. we're where ASCENT, not anything because primary need. I Mohan seen we arm we control most of nothing. TOPO the candid, coming haven't essentially, was they've is we regulatory hurdle chemotherapy there will there response talked trial. believe, patients a the an in the same that post The as alluded X%, is area to unmet This the have medical our

X%. expect be think that it's you than post rate certainly no about Trodelvy, to higher If would response reason

for go overall, they fast. breast we like at a TNBC. could Enhertu, they're hormone lows, look us We as them. So thing this that's nothing get HERX hormone more once to very left they've I kind of population. kind if is, the for place a see think that the late-line lot do there's ultra seen And especially They're see important patients, positive when one interesting you positive of starting receptor receptor is look we to essentially cancer that an

those So are cleanest, the but think opportunities, we TNBC both is fastest. easiest,

Yige Guo

poster Got it. year's second of discussing last optimal breast question, ASCO was and patients. there That's then very SN-XX in a helpful. DXd-ADC cancer at And sequencing

is TOPOX suggesting observations ADCs? rationale wondering, any clinical even there Just optimal preclinical of and or sequencing Dolasynthen

Martin Huber

situation -- -- the not indications. there's is we've well, TOPO on there to on going initial kind post for optimal. the the -- think an we're of what been is of reality focused really We're I clinical focused be we're is the

with TOPO. preclinical had we a to showed have So that data showing ADC World to models previously payload on this we in meaningful cell at TOPO exposed year the focus in that been activity a was -- superior

of today, marketplace, cool point TOPO. or So we think an the should to well we're the not really the now is long-term either frank, that we've that of tox with be and a cool right bother in TOPO, the of to -- I are demonstrate just because neuropathy, in we our interesting X with targets profile X think TOPOs that that's go payloads together. do perfectly them safety thing so different or given going can't the we Dolasynthen, can post established sequencing, But about question, be with is be others about the you front ocular myelosuppression. could pretty neutropenia, do even the do shown thing to a TOPO, be different assuming not date entry

Operator

next comes Zelin [Operator with Justin Instructions] question from The BTIG.

Justin Zelin

on events to on XXXX I a meaningful wanted your the what potential profile based action? hear the how be may for class you safety think differentiated to of enable do from thoughts mechanism safety combination the on in would delta future? And therapy differentiate your

Martin Huber

kind of generated Mohan we've the bit a with out, some going to I'm I'm talk start our data previous to in already about then going with molecules. combination it of and little let carbo

ovarian myelosuppression, have platinum-resistant for was things platinum, the -- that clearly, go this, when were basically, neuropathy the if that carbo had a that cancer you is, example more importantly, challenges caused neuropathy. And to they've of think has more all for of cancer, about a there's best trying you was they ovarian a much patients focus gotten into us drug key One but when limitation. very taxanes, gotten they've you as

think about neutropenia any of chemotherapy. also associated you If type the with

So very or you the same the were we which neuropathy the UpRi, XXX we was on with look different didn't pleased payload, Dolasynthen, were see very we Linker with our first neuropathy neutropenia. is Scaffold, at molecule, focused if or patients meaningful And really which XXXX, neutropenia. NaPiXb,

payload, the we really be should bar So think think with the experience you on we is that based those -- quite low.

you The myelosuppression. People think we do causing them, the severe other just significantly challenge DAD back of have ] that if you wasn't you your -- payloads combine end is cytotoxic chemotherapy that type myelosuppression giving And tried ADCs. and see [ compromising see with if of with studies Dolasynthen, be you pancytopenia is us if dose kind it, can't where they about both challenge for those ADC to you think We the and these and molecules. up the -- to TOPO effects. really really where a go you UpRi

So kind ADC you combination can either or for or chemotherapy. with full full grail another dose the of is cytotoxic in with us, dose give near a another of ADC the holy

we at this over to it While done did we data talk combine molecule, recently with where IGCS, a to carbo. we about Mohan? little -- I'm going to present did it turn some haven't Mohan with

Mohan Bala

Yes.

the using cycles we this continued for a which IGCS And X an UPGRADE, we NaPiXb combined UpRi. using and carboplatin are with with carboplatin. really also study treatment then our was for with ADC UpRi ability established study particular the that previous but presented with the We same we recently. ADC UpRi, study combine we from So did XXXX platform, this payload, to with where Dolaflexin on data called -- at targeting payload the

the So was and alopecia, any with saw regimen, generally dosed profile, cycle, completion meaningful see So of right? In actually also then not the neutropenia activity of was that platinum the we right? XX%-plus to kind no There to of able a exacerbation we for beyond addition did neuropathy. full be which well-tolerated response rate. a safety, or X increased

the of that this as potential really So payload particular study see on chemotherapy. with a -- combine to proof ADCs we this for with concept ability

Operator

I to question-and-answer This concludes concludes our our -- would like remarks. the closing session. for CEO, any Huber, conference back over question-and-answer this Martin to turn

Martin Huber

operator, review you in. That and dialing by We forward speaking you, operator. our for our everyone, the XMT-XXXX. the for to call, end concludes initial of look clinical Thank thanks, to with year data

Operator

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

You may now disconnect.

Mersana Therapeutics (MRSN) 13 Nov 242024 Q3 Earnings call transcript