Mersana Therapeutics (MRSN) 7 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to the Mersana Therapeutics Third 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. Please go ahead.

Thank you, operator, and good morning, everyone.

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

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

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

Jason, everyone. you, as good morning, X CEO. into my pleasure you with It's about and to Mersana's tenure speaking weeks Thank be a

these months, Over of have the role. X I course many analysts investors asked the why and chose

was knew Having start was Board worked and of real product difference because So our by of this high-functioning patients. It's our mission a driven several that member for with a prior as our platforms, I financial a a people, there. let's since role, really XXXX having to position. served make Mersana candidates and in team a executives high-caliber

and conviction has and that, Immunosynthen. had our platforms, view to standpoint, provided about with making in a time my role made uplift, the in role from part my that in and excitement providing opportunity an first-generation CEO that advanced also these but potential. as an Dolasynthen balance meaningful wake about were were beyond we next-generation my progress of the difficult well decisions only addition, our we accomplish only clear we our objectives. Dolaflexin, Not thanks have director ADC platform Mersana's that a In innovation the strengthened sheet to factors My a

on areas core let's of Now focus. our move to

The was which Dolasynthen, ADC XMT-XXXX, first our developed platform. cytotoxic next-generation is utilizing

has some Dolaflexin, ADC has was Like advantages platforms developing work many Published shown efficacy. species both no having our sub-populations within to tolerability potential a ADC platforms, impact a years of numerous that and while can first-generation to heterogeneous safety Dolaflexin. develop over We utilized data platform that DAR heterogeneous other that ADCs. limited spent preclinical technology improved Dolasynthen first-generation high of from terms that in Dolaflexin produced specifically have and shown mixtures, population platforms upon hydrophobic negatively Our [indiscernible]. contribution first-gen

ability completely We the that this improved further efficacy and result fashion. reductions and in to in properties, drug-like an then would identify in homogeneous wanted toxicity. we produce ADC Specifically, a potential outperformer outperformer the believe enhanced off-target for

and an effort. MAE, we demonstrate to the tumor X near-term a is targeting we initial Additionally, a these this others provide approaches. of XMT-XXXX target. are advantages intriguing validate first-gen these both breast, endometrial ovarian space. from At field, clinical shown when terms markers were have tissue ADCs to and toxicity. XMT-XXXX we of platforms Dolaflexin healthy expression BX those need, types to is conjugation we lead last month, including clear DAR delivery, a unmet ADC, now our with in in pharmacokinetics, BX-HX, family and benefits to XMT-XXXX, opportunity of data in member multiple see overexpression clinically. data, Dolasynthen light the efficacy to early wanted ability preclinical in the drug-to-antibody BC differentiate opportunities site-specific by models, Dolasynthen shared helping ratios others that there as of that's result immune of cancers. high compare medical been and from limited like the believe ESMO and optimize checkpoint in Across to and In Dolasynthen BX-HX ADC tumor

dose XXXX our We portion Phase in continue I trial. escalation the of to advance

X focuses that good publicly it has begun clinically shared also we making with discovering that for offering have of relevant at collaboration expansion up ADC enroll for been have of Janssen to Dolasynthen comprehensive to end as escalation a with on in worth patients escalation Dolasynthen, that backfill progress landscape. By chose to this dose XXXX. we year, our our of Additionally, dose cohorts part in targets. ADCs complete we novel review design. the expect the noting planned doses It dose is Janssen

on move and to let's Immunosynthen. XMT-XXXX Now

adverse findings preclinical earlier indicated on patients Grade that that initial more this patients be that X you many the this the of with potent stimulator ADC we event immune almost truly platform our an of less mechanisms, predictable. cytotoxic the X from and payloads antigen clinical began unique been Several one a from than attacking translation trial payload exclusively candidate might ADC this able into to our XMT-XXXX, Phase in of how trial. is tumors This trial is the has an clinical Immunosynthen years seen XMT-XXXX that ADC signaling past the I we've clinical focused result year. other placed sometimes humans can immune ago, on response in reminder of tumor-resident As This hold to dosed go explore immune for developing cytokine, unfortunate of dosed a STING is in and an pharmacokinetic Immunosynthen selectively we know, cells tumor of initiated cells. was microenvironment. leverage We and to in decades. benefits innate with I initial clearly as novel served field We tumor effort. in Phase deeply the when following activate in to the patients The leverages the be the activating a goal both expressing much preclinically. have a first STING-agonist Immunosynthen in dosed. from data entirely a clinical approach

escalation dose the a last our Phase on hold As clinical in that to I I the we were week result, the news FDA. starting the has that a XMT-XXXX pleased lifted been a trial dose design. by share developed very Phase FDA We to response of lower included

a attention We molecules, progress for we promise. clinical XXXX our a and excitement deliver has a ahead of on about been cancer to the by company that to With uplift cancers. now its build. milestones key are things a in patients also working the lies January. ovarian turned the and you results sites Our team made With would In XXXX. from healthy hard you, half upcoming finally, turn We to to range And to our Mersana clinical has of reinitiate let's to outlook that, enrollment. to forward sheet, make look and reengaging summary, strong for present differentiated proud great Mersana And this with sharing and that meeting team about with the a mealing more what highly with am in to to my is the data at completion. plan Brian. collaborations, over I mention to continues all difference an balance platforms stage like recent has first medical during of of I the analysis opportunity

Marty. you, Thank

be on in cash this into me and assume already cash, to which with we to of of with guidance actions funds the payments [indiscernible] million potential will note a year. workforce brief efforts, vast the down majority complete for of announced completed reprioritization and These cash activities. is reduction We and substantially third current end of report structure our we cost runway and This securities, expect our future we've as commitments part that collaborations. the efforts not does workforce realize and the actions reduction of up support update reprioritization pleased our call XXXX. with July. available will $XXX from [indiscernible] related operating the of included approximately a restructuring and portion set Please development restructuring begin that XX% $XXX down wind Let approximately proceeds XXXX a restructuring a any or of quarter us simplified by million I'm meaningfully that remainder of the our a the that from in XXXX. plan in collaborations our XXXX. may our the to milestone our approximately equivalents of end compares balance marketable Thanks of ended in bind

million million stock-based to related Immunosynthen cash third in period decline quarter million. $X.X was was operating on for decline next-generation [indiscernible] [indiscernible] and for approximately XXXX for for XXXX. professional XXXX. manufacturing XXXX greater $XX.X period the like expenses greater and million. same a of administrative was to related compared year-over-year a that expense to our XXXX G&A-related platforms, from third quarter compensation collaborations. to same for XMT-XXXX income $X.X and to on third Turning quarter related $XX.X and $X.X the clinical business to from million the primarily reduced $XX.X XXXX time a primarily focuses XMT-XXXX, third collaboration for million that compensation quarter [Audio to reminder $XX.X and The increase XXXX related compared development R&D-related in was that to to of increase the our fees statement. reduced the transition in Noncash a with to same for for period year-over-year of the Research This primarily compensation. our begin of quarter and for Merck employee Net expenses third revenue activities compared XXXX. consulting million was stock-based reduced KGaA. gap] XXXX. in current of during were was XXXX. million same million the expense $XX.X related to Collaboration third were strategy $X.X third heavily the year-over-year of the the quarter of compensation. employee the $X.X Noncash strategy was costs service our The and period and The focused million used the of previous quarter I primarily was XMT-XXXX to reduced was contribution our General with compared would

$XX.X loss the from and During expenses. net to please severance-related you business the loss to the net questions the related call quarter XXXX. was of update. That compared for $XX.X open of third in of XXXX to quarter, we incurred Mersana's a million same the our contract Operator, restructuring $X.X concludes million costs termination period charges audience. third million will for primarily

our [Operator first from Chang And Instructions] question of Jonathan Leerink Partners. come will

are And give for color enrolling escalating? initial you give Can patients still some the enrollment First is XMT-XXXX in a you us that? XXXX. us clinical sense we comment cohorts of And the data? progressing second How on can when study? you question, might question, dose about see backfill around

getting Thank of point I'd you, phase in and dose or you is a into progress group Jonathan. of the a cohorts. Phase enroll with of X begun We're understanding II details, the like in good consistent these out this, standard trial the the to other kind have to your of expand recommended designs the for design dose. patients now, at where dose in patients better escalation What making is we're doses, while not to order get backfill Phase

our Importantly, the restricted other landscape. a hormone the of 'XX help same tumor We plan cancer BX-HX TNBC, we What set the is that in breast goals to robust on specific subset differentiate enrolling to data study, population share as patients that share these for and milestones and in broader January. receptor patients will are positive types. within XMT-XXXX plan which to specific with is we're a the

Colleen of comes The Baird. from Kusy next question

you've in level expression progress. be whenever done next you And the would some know types. different to report work in you the on biomarker XMT-XXXX patients in tumor initial of on data the In BX-HX that expression Are year? enrolled Congrats study, the measuring BX-HX study? available I

We are BX-HX expression. on data collecting

in though data, to time, Importantly, be we we that on it's our we're details level will regards what all a were are disclosure. this patients reporting at further giving selecting expression. expression, with considering, exactly no certainly not but BX-HX regardless on of With patients point factor in of the so of

the can And death. the on about little you've can and you steps a then the gather, recent the little of bit to of patient work a more and bit what XMT-XXXX, been the next latest all just understanding data between done hold enrollment? the your just of And you the talk after caused restarting talk about you've lift able clinical

preclinical data across Sure. as and in more humans what well the was essentially Well, realized immune what we comparison is stimulator we deeply the we the did we pharmacokinetics on the our one to our preclinical cytokine thought to of potent the we looked looked much at into based data. for than had we XMT-XXXX in things And as a that board clinical data. data, have

the look at So And while going an lower importantly, we're not shifts our granular dose to it way going we into was appropriate a the details, whole therapeutic index. strategy.

think going regards details still positive we of an forward. -- to to been protocol. patients achieve importantly, we're the So is able the be a to in to amendment therapeutic is, index kind have it With going

process. in technical a like that things protocol addition as amid details update there to kits you reengaging for enrolling, have the So lab to to some start city when part mind sites like you that and are of that,

the us. at enrollment last then from one the you just When study, STING restart changing all? criteria you And are

dose. really, minimal There about some starting the The starting primary are it's dose. lowering was the but effect changes, on

come [Operator next of Citi. Instructions] our Ashiq And question from Mubarack will

I guess you first, alluding the landscape. program to alluded in to idea -- you BX-HX for comments some differentiation of made maybe your the

might I there of helpful on development it you're color helpful. a Any from be differentiated how be would think profile be perspective, also to a clinical but to expect differentiated review you clinical how profile? kind

I Sure. can take that. Maybe

the think BX-HX that there's X in are I companies Hansoh. Seagen GSK there and out space,

you to our and our just you particular, payload sort in HERX be we've Hansoh And ADCs consideration. ADCs When and AZ, to classical more to breast that payloads. with that compared MMAE avoid to patients evidence this when focusing pretreated believe dose-limiting [TOPOX] versus of And in can that conferences And the that we've the in [TOPO] this look also a care, TRODELVY tend shown clinical programs. frankly, for market payload in past faster think Seagen first-generation And landscape that evidenced [TOPOX] tumor severe platforms, and to peripheral this are I commentary largest So all resistance at some when ADC presentation the Dolasynthen can MMAE platform the on payloads. this using you cancer from opportunities on ADC. There's by increasing and we year develop neuropathy about be the deliver gynecologic a standard appears tumors shown becoming have believe our extensively, and neutropenia could does addition, we VC is and of efficiently across frankly, GSK think those much move effectively. preclinically preclinically. about

consideration another that the think toxicities for are is dose-limiting I see you just that hematologic TOPOXs in similar ways.

on more Maybe one XMT-XXXX.

you'll helpful the color safety obviously confidence window a reducing be dose. on strike be but to on sort pathway, of You're between gives guess I thoughts course, STING balance some some overstimulating therapeutic issues. might, the able which might what of cause immunologic not coverage here. the guess you your HERX I

more We're what's it's amount much into at when not think systems, effects sensitive. go going downstream here, the in but we look to detail of I agonists and the important staying human is

discussion. you'll essentially, level available. should range. also at it part -- we're of just we shouldn't data shifting it. that to -- that to have a this time, shift as will It January believe will activation shift therapeutic the move the going At in data, fundamentally we're well be basically, that our we the lower how index So But that point so scale idea evidence is of some of need That discuss dose to change. so not be should that

question comes BTIG. Kaveri next of from The Pohlman

trials include on expansion for Does and Can additional XXXX? XXXX it your for runway any I dose you XXXX what any cash additional provide beyond Phase color include?

So thank Kaveri. you,

XXXX of on the early guidance operating both our commitments, runway current plan include XXXX. is which based development clinical and cash Our

is? well And for HERX tell is us can known epitope. doesn't PERJETA it it it, How the patients with about XXXX, you for And retreated validated XXXX work if are epitope? that's something

Yes. take targeted I'll Herceptin. The either on distinct that it's maybe from is or So HERX. epitode that. HERX by obviously pertuzumab But

those with not sites. It does react cross

Is Correct. is patients progress, -- you really can Herceptin? they why But you patients if if it, as retreat biology even epitope giving in something still had about whereas it is respond. PERJETA your known it doesn't -- similar if they And Herceptin, that? work keep it

different able principle, undergone be we We Sure. a treatment should who HERX to with targeted HERX a have intentionally target paradigm. because previously in patients epitope

a part intentionally thinking So to part of of it was the go different to the was antigen.

next The Boris comes from question Peaker Cowen. of

the to My to what first antibody question ideal can drug understand target? you the know target XXXX, you on of I just do concept want discuss a drug ratio? specific ratio antibody is for optimized how

target, of and molecule at then a look of if given What DARX we've X, target. you a range we as optimal is, is at XX create data, public is part what DAR species. DAR this with versus a we preclinical for versus program, And look done can for for our is DAR DAR X example, a given

So this our is of basically each one for experimentally targets. derived

tumor And I possible curious, the is nature, let's is the X so tell guess in stimulator understand goal or payload environment. is to working XXXX, is just that micro to deliver actually it activity immune starting the you're in somehow to the if local is off systemically, microenvironment? say, for coming systemic I'm seeing the the it or I

on on conclusion cannot that. draw we date, the a to data Based have we limited

[Operator from Instructions] next Asthika of comes question Truist. Our Goonewardene

had on share this Does inclined that This the Can is at BX-HX was only Endometrial, make X% CR. a a but had Karina indications? presented Rabayeva. that, pursue please? certain I example, just that more competitor color on you was to ORR, question a data ESMO. for you

Sure.

were numbers the be conclusions the limited little types to specific fairly tumor in the about because prematurely of want drawing we think board. breast careful I outside a across

BX-HX example, as is, quite in types, other know may expression also as in triple-negative those it not of the for tumor breast. be of some levels We common

in this triple-negative of the other types, be one while at get to tumor where we clear it's of easiest think data, understanding the places cancer, breast interesting. still a it's we, little they're point So do premature. is the especially We to going bit say, time, probably a would

beyond tumor there's So still for in think types triple-negative we XXXX an opportunity breast.

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

of dialing thanks, everyone to That see later to concludes in. Thank biopharma the truest you and for symposium, looking in you, hope everyone, week some apprised forward I'm progress. and this operator, We New call, our York at our operator. of keeping

has disconnect. and today's you now now Thank presentation, you conference for concluded. may attending The