Emi-Le is a B7-H4-directed Dolasynthen ADC with a precise, target-optimized drug-to-antibody ratio (DAR 6) and a proprietary auristatin payload with controlled bystander effect. This candidate is being investigated in a Phase 1 dose escalation and expansion trial in patients with solid tumors, including breast, endometrial and ovarian cancers as well as adenoid cystic carcinoma type 1. In the initial clinical data that were reported as of a December 13, 2024 data cutoff, Emi-Le was observed to be generally ...

Mersana Therapeutics, Inc. Q4 2024 Earnings Conference Call March 3, 2025 8:00 AM ET Company Participants Jason Fredette - SVP, IR Martin Huber - President & CEO Brian DeSchuytner - CFO & COO Conference Call Participants Yen-Der Li - Leerink Partners Charles Zhu - LifeSci Capital Paul Jeng - Guggenheim Andy Hsieh - William Blair Asthika Goonewardene - Truist Operator Good morning, and welcome to Mersana Therapeutics Fourth Quarter and Year End 2024 Conference Call. Currently all participants are in a listen ...

Company Performance - Mersana Therapeutics reported a quarterly loss of $0.11 per share, better than the Zacks Consensus Estimate of a loss of $0.16, representing an earnings surprise of 31.25% [1] - The company posted revenues of $16.36 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 154.92%, compared to revenues of $10.7 million a year ago [2] - Over the last four quarters, Mersana has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] Stock Movement and Outlook - Mersana Therapeutics shares have declined approximately 63.4% since the beginning of the year, while the S&P 500 has gained 1.2% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.19 on revenues of $5.32 million, and for the current fiscal year, it is -$0.67 on revenues of $29.99 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Mersana belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Mersana's stock performance [5][6]

Mersana Therapeutics (MRSN) Q4 2024 Earnings Call March 03, 2025 08:00 AM ET Company Participants Jason Fredette - Senior Vice President of Investor Relations & Corporate CommunicationsMartin Huber - President & CEOBrian DeSchuytner - Senior VP, CFO & COOPaul Jeng - Vice President Conference Call Participants Yen-Der Li - Biotech Equity Research AnalystCharles Zhu - Managing Director, Senior Biotechnology Research AnalystAndy Hsieh - Research AnalystAsthika Goonewardene - AnalystNick Quartapella - Equity Re ...

Financial Performance - The company reported net losses of $204.2 million, $171.7 million, and $69.2 million for the years ended December 31, 2022, 2023, and 2024, respectively, with an accumulated deficit of $895.6 million as of December 31, 2024[587]. - Net loss improved to $69,192,000 in 2024 from $171,670,000 in 2023, a reduction of 60%[607]. - The company reported a net loss per share of $0.56 for 2024, compared to $1.48 in 2023, indicating a 62% improvement[672]. - The company expects to continue incurring operating losses for at least the next several years, raising substantial doubt about its ability to continue as a going concern[685]. - The company has suffered recurring losses from operations, raising substantial doubt about its ability to continue as a going concern[659]. Cash and Liquidity - Cash, cash equivalents, and marketable securities totaled $134.6 million as of December 31, 2024, which are expected to fund operations into 2026[587]. - Cash used in operating activities for 2024 was $82.340 million, a decrease from $168.882 million in 2023[678]. - The company has borrowed $25,000,000 under the New Credit Facility as of December 31, 2024[620]. - The company anticipates increased cash expenditures related to ongoing research, development, and clinical trials, necessitating additional funding through equity offerings, debt financing, or collaborations[626][631]. - As of December 31, 2024, the company had cash, cash equivalents, and restricted cash of $108.228 million, down from $175.039 million at the end of 2023[678]. Revenue and Collaborations - Revenue from collaboration agreements with Merck KGaA, GSK, and Johnson & Johnson amounted to $14.3 million, $3.2 million, and $22.9 million for the year ended December 31, 2024, respectively[590][591][592]. - Collaboration revenue for 2024 reached $40.497 million, a 10% increase from $36.855 million in 2023 and a 52% increase from $26.581 million in 2022[672]. - The Company recorded collaboration revenue of $3.2 million, $3.4 million, and $2.0 million for the years ended December 31, 2024, 2023, and 2022, respectively, under the GSK Agreement[747]. - The Company received a non-refundable upfront payment of $40.0 million from Johnson & Johnson as part of the research collaboration and license agreement[750]. - The Company is eligible to receive future milestone payments up to approximately $1.3 billion from GSK, along with tiered royalties based on global sales of Licensed Products[738]. Research and Development - The company has two clinical-stage product candidates: Emi-Le, currently in a Phase 1 trial, and XMT-2056, which resumed its Phase 1 trial in early 2024 after a FDA hold[582]. - Research and development expenses are expected to increase as the company progresses its clinical development programs[597]. - Significant research and development expenses are expected for Emi-Le and XMT-2056 as clinical development continues[603]. - The company has two additional preclinical candidates, XMT-2068 and XMT-2175, leveraging its Immunosynthen platform, indicating ongoing innovation in product development[681]. - Emi-Le external costs increased to $17,642,000 in 2024 from $14,098,000 in 2023, reflecting an 18% rise[600]. Expenses and Liabilities - Total research and development costs decreased significantly to $73,020,000 in 2024 from $148,269,000 in 2023, a reduction of 51%[607]. - General and administrative expenses decreased to $40,813,000 in 2024 from $59,543,000 in 2023, a decline of 31%[612]. - Total operating expenses decreased to $113.833 million in 2024 from $216.525 million in 2023, reflecting a 47% reduction[672]. - The total liabilities decreased to $154.17 million in 2024 from $189.16 million in 2023, a reduction of about 18.5%[669]. - The company's accrued expenses totaled $18.96 million as of December 31, 2024, compared to $21.90 million in 2023, reflecting a decrease of approximately 13.4%[669]. Strategic Decisions and Future Outlook - The company discontinued the development of upifitimab rilsodotin (XMT-1536) and reduced its employee base by approximately 50% as part of restructuring efforts[584]. - The company has obligations to pay up to $48 million per target for development, regulatory, and commercial milestones for each of the four licensed targets under the Synaffix License, totaling up to $197 million[637]. - The company may need to relinquish valuable rights to technologies or future revenue streams if additional funding is raised through strategic collaborations or licensing arrangements[631]. - The company has not recognized any royalty revenue from its collaboration arrangements to date[701]. - The Company expects to continue incurring operating losses for at least the next several years, raising substantial doubt about its ability to continue as a going concern[685].

Financial Performance - Net loss for Q4 2024 was $14.1 million, or $0.11 per share, an improvement from a net loss of $19.5 million, or $0.16 per share, in Q4 2023[10] - Full year 2024 collaboration revenue was $40.5 million, up from $36.9 million in 2023, driven by milestone payments from the Johnson & Johnson collaboration[14] - Net loss for the full year 2024 was $69.2 million, or $0.56 per share, compared to a net loss of $171.7 million, or $1.48 per share, in 2023[14] Revenue and Expenses - Collaboration revenue for Q4 2024 was $16.4 million, a 53% increase from $10.7 million in Q4 2023, primarily due to increased revenue from collaborations with Johnson & Johnson, Merck KGaA, and GSK[10] - R&D expenses for Q4 2024 were $22.3 million, compared to $21.5 million in Q4 2023, with the increase attributed to costs for Emi-Le and XMT-2056[10] - R&D expenses for the full year 2024 were $73.0 million, significantly down from $148.3 million in 2023, due to reduced costs for discontinued programs and restructuring[14] - G&A expenses for the full year 2024 were $40.8 million, down from $59.5 million in 2023, reflecting reduced consulting fees and employee compensation[14] Cash Position - Cash, cash equivalents, and marketable securities as of December 31, 2024, were $134.6 million, with expectations to support operations into 2026[10] Clinical Development - Mersana plans to present additional Phase 1 clinical data for Emi-Le and XMT-2056 in 2025, with ongoing patient enrollment in clinical trials[6][8] - The company received a second Fast Track designation for Emi-Le from the FDA, indicating progress in its clinical development efforts[4]

Core Insights - Mersana Therapeutics has made significant advancements in the clinical development of its lead candidate Emi-Le, including positive initial Phase 1 clinical data and a Fast Track designation for HER2-negative breast cancer patients [2][3] - The company reported a net loss of $14.1 million for Q4 2024, an improvement from a net loss of $19.5 million in Q4 2023, and a full-year net loss of $69.2 million compared to $171.7 million in 2023 [16][22] - Collaboration revenue for Q4 2024 was $16.4 million, up from $10.7 million in Q4 2023, driven by increased collaboration agreements with major partners [10][16] Clinical Development - The expansion of the Phase 1 clinical trial for Emi-Le is ongoing, targeting patients with triple-negative breast cancer (TNBC) who have received prior treatments [4][5] - Mersana plans to present additional clinical data from the ongoing trials in 2025, which may provide further insights into the efficacy and safety of Emi-Le [5][9] - The company is also advancing its second candidate, XMT-2056, with plans to present initial clinical pharmacodynamic data in 2025 [6] Financial Performance - As of December 31, 2024, Mersana had cash, cash equivalents, and marketable securities totaling $134.6 million, which is expected to support operations into 2026 [10][19] - Research and development expenses for Q4 2024 were $22.3 million, slightly higher than $21.5 million in Q4 2023, primarily due to increased costs for Emi-Le and XMT-2056 [10][11] - General and administrative expenses decreased to $8.9 million in Q4 2024 from $10.1 million in Q4 2023, reflecting cost-cutting measures following a restructuring [16] Collaborations - Mersana continues to strengthen its collaborations with Johnson & Johnson and Merck KGaA, which are crucial for the development of its ADC candidates [7]

Core Viewpoint - Mersana Therapeutics, Inc. is set to provide business updates and report its financial results for Q4 and the full year of 2024 on March 3, 2025, indicating ongoing developments in its clinical-stage biopharmaceutical operations focused on antibody-drug conjugates (ADCs) targeting cancers [1]. Company Overview - Mersana Therapeutics is a clinical-stage biopharmaceutical company dedicated to developing novel antibody-drug conjugates (ADCs) to address high unmet medical needs in cancer treatment [3]. - The company has developed proprietary ADC platforms, including Dolasynthen and Immunosynthen, which are generating a pipeline of product candidates aimed at treating various cancers [3]. - The pipeline includes Emi-Le (emiltatug ledadotin; XMT-1660), a Dolasynthen ADC targeting B7-H4, and XMT-2056, an Immunosynthen ADC targeting a novel epitope of human epidermal growth factor receptor 2 (HER2) [3].

Company Overview - Mersana Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing antibody-drug conjugates (ADCs) targeting cancers with high unmet medical needs [3] - The company has proprietary platforms for cytotoxic (Dolasynthen) and immunostimulatory (Immunosynthen) ADCs, generating a pipeline of product candidates [3] - Current pipeline includes Emi-Le (emiltatug ledadotin; XMT-1660), a Dolasynthen ADC targeting B7-H4, and XMT-2056, an Immunosynthen ADC targeting a novel epitope of HER2 [3] Recent Developments - On February 3, 2025, Mersana granted an inducement award consisting of a restricted stock unit (RSU) award to acquire 20,610 shares of common stock to a new employee [1] - The RSU award will vest in equal annual installments over four years starting from February 15, 2025, contingent on the employee's continued service [2] - The award is in accordance with Nasdaq Listing Rule 5635(c)(4) and is subject to Mersana's 2022 Inducement Stock Incentive Plan [1][2]

Core Insights - Mersana Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing antibody-drug conjugates (ADCs) for cancer treatment in areas of high unmet medical need [1][2] - The company will participate in a fireside chat at the Guggenheim SMID Cap Biotech Conference on February 6, 2025, at 1:30 p.m. ET, with a live webcast available on its website [1] - Mersana has developed proprietary ADC platforms, including Dolasynthen and Immunosynthen, which are generating a pipeline of product candidates targeting various cancers [2] Company Overview - Mersana Therapeutics specializes in novel ADCs and aims to provide new treatment options for patients [2] - The company's pipeline includes Emi-Le (emiltatug ledadotin; XMT-1660), a Dolasynthen ADC targeting B7-H4, and XMT-2056, an Immunosynthen ADC targeting a novel epitope of HER2 [2] - Mersana regularly updates investors with relevant information on its website [2]