Mersana Therapeutics(US:MRSN)2023-05-09 12:55Financial Performance - For the three months ended March 31, 2023, the net loss was $56.2 million, compared to $47.3 million for the same period in 2022, with an accumulated deficit of $710.9 million as of March 31, 2023[157]. - Collaboration revenue increased by $5.8 million, from $2.0 million in Q1 2022 to $7.8 million in Q1 2023, driven by $3.1 million from the Merck KGaA Agreement and $2.5 million from a milestone with Asana Biosciences[178]. - Net cash used in operating activities was $29.0 million in Q1 2023, compared to $8.0 million in Q1 2022, reflecting a net loss of $56.2 million[192]. - Total other income (expense), net improved by $2.3 million to $1.6 million in Q1 2023, primarily due to increased interest income from marketable securities[183]. Research and Development - The company expects to continue incurring significant expenses and operating losses over the next several years, particularly related to ongoing clinical development and manufacturing activities for UpRi and XMT-1660[158]. - Research and development expenses are expected to increase significantly as the company progresses its clinical development programs[167]. - Research and development expenses included $22.1 million in internal costs and $25.2 million in external costs for various product candidates in Q1 2023[171]. - The company expects an increase in research and development expenses as it continues clinical development for UpRi and XMT-1660[173]. - UpRi is currently being evaluated in a registrational trial (UPLIFT) with approximately 270 patients enrolled, and top-line data is expected in mid-2023[150]. - XMT-1660 has received Fast Track designation from the FDA for the treatment of advanced or metastatic triple-negative breast cancer, with patient dosing initiated in August 2022[151]. - XMT-2056's Phase 1 trial was placed on clinical hold by the FDA due to a Grade 5 serious adverse event, which is currently under investigation[153]. Financial Resources and Funding - Cash, cash equivalents, and marketable securities totaled $273.9 million as of March 31, 2023[189]. - The company has drawn $25 million from its New Credit Facility as of March 31, 2023, which provides up to $100 million in credit[188]. - The company has the option to borrow an additional $15 million under the New Credit Facility until June 30, 2023[196]. - The company plans to finance cash needs through strategic collaborations, licensing arrangements, equity offerings, and debt financings[198]. - The company may need to rely on additional financing to achieve business objectives, as substantial product revenues are not expected for many years[197]. - The company anticipates that its financial resources will be adequate to support operations into the second half of 2024, although this is subject to risks and uncertainties[196]. Operational Expenses - Total research and development costs rose to $47.3 million in Q1 2023, up $11.5 million from $35.8 million in Q1 2022[180]. - General and administrative expenses increased by $5.5 million, from $12.8 million in Q1 2022 to $18.3 million in Q1 2023, primarily due to higher consulting and professional services costs[182]. - The company expects its cash expenditures to increase due to ongoing research, development, and commercialization efforts for its product candidates[195]. Legal and Contractual Obligations - There were no material changes to the company's contractual obligations as reported in the Annual Report for the year ended December 31, 2022[200]. - The company is not currently party to any material legal proceedings that could adversely affect its business[209].