Mersana Therapeutics(MRSN) - 2025 Q1 - Quarterly Report

Financial Performance - The company reported net losses of $24.1 million for Q1 2025, compared to$19.3 million for Q1 2024, with an accumulated deficit of $919.7 million as of March 31, 2025[151]. - Collaboration revenue decreased by$6.5 million, from $9.2 million for the three months ended March 31, 2024 to$2.8 million for the three months ended March 31, 2025[172]. - Net loss increased by $4.8 million, from$19.3 million for the three months ended March 31, 2024 to $24.1 million for the same period in 2025[171]. - Net cash used in operating activities was$29.3 million for the three months ended March 31, 2025, compared to $32.7 million for the same period in 2024[181]. - Total operating expenses decreased by$2.98 million, from $30.2 million for the three months ended March 31, 2024 to$27.3 million for the same period in 2025[171]. - Research and development expenses totaled $18.3 million for the three months ended March 31, 2025, a decrease of$0.3 million from $18.7 million in the same period of 2024[173]. - General and administrative expenses decreased by$2.6 million, from $11.6 million for the three months ended March 31, 2024 to$8.9 million for the same period in 2025[175]. Cash Position - As of March 31, 2025, the company had cash and cash equivalents of $102.3 million, which is expected to fund operations into mid-2026[151]. - Net cash provided by investing activities was$27.0 million in Q1 2025, a significant improvement from net cash used of $72.5 million in Q1 2024, primarily due to maturities of marketable securities[183]. - Net cash used in financing activities was$3.1 million in Q1 2025, down from net cash provided of $5.8 million in Q1 2024, mainly due to debt principal payments[184]. - The company anticipates increased cash expenditures related to ongoing development, clinical trials, and potential commercialization of product candidates[185]. - As of March 31, 2025, the company has borrowed$25.0 million under the New Credit Facility, with $5.2 million of principal repaid[180]. - The company may need to raise additional funds through equity offerings, debt financings, or strategic collaborations, with no assurance of success in obtaining sufficient funding[186][189]. Clinical Development - The ongoing Phase 1 clinical trial of Emi-Le has shown a confirmed objective response rate (ORR) of 31$4-5 million[146][147]. - The company has discontinued the development of upifitimab rilsodotin (XMT-1536) and completed the related restructuring by December 31, 2023[148]. - Significant external costs for manufacturing and clinical trials are incurred, with total research and development costs at $18.3 million for the three months ended March 31, 2025[162]. - The company expects to incur significant research and development expenses over the next several years as it continues clinical development and manufacturing efforts[166]. Market and Risk Factors - The interest rate on the New Credit Facility is sensitive to changes, with a principal balance of$19.8 million outstanding as of March 31, 2025[195]. - The company is exposed to market risk related to interest rates, but believes that a 100 basis points change would not materially affect the fair market value of its investment portfolio[194]. - There were no material changes to contractual obligations during the three months ended March 31, 2025[192].