Mersana Therapeutics(MRSN) - 2021 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Net cash used in operating activities in Q4 was $42 million, with a year-end cash balance of $178 million [38] - The company raised $40 million from Janssen and $46 million through strategic use of its ATM in early 2022, enhancing its financial position [38] - The total available capital, including cash and credit facilities, is approximately $300 million, expected to fund operations into the second half of 2023 [40] Business Line Data and Key Metrics Changes - The UPLIFT trial is on track for full enrollment in Q3 2022, with data readout expected in early 2023 [11][31] - UP-NEXT, a Phase 3 trial, is set to initiate enrollment in Q2 2022, targeting NaPi2b high, recurrent, platinum-sensitive ovarian cancer [13] - UPGRADE, a Phase 1/2 trial, anticipates interim data disclosure in the second half of 2022 [14] Market Data and Key Metrics Changes - The company is focusing on building UpRi as a foundational therapy in ovarian cancer, with ongoing trials expected to generate significant data [10][27] - The collaboration with Janssen includes a $40 million upfront payment and potential total milestones exceeding $1 billion, indicating strong market interest in ADCs [26] Company Strategy and Development Direction - The company aims to establish itself as a leading ADC company through four strategic pillars: building UpRi, expanding its pipeline, fostering innovation, and maintaining a strong financial position [9][10] - Strategic partnerships are seen as essential for expanding the external pipeline and generating financial contributions [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust efficacy and tolerability profile of UpRi, which is expected to improve patient outcomes [16] - The company is well-positioned to transform into a commercial stage entity with a deep pipeline of innovative molecules [46] Other Important Information - The company has completed IND-enabling studies for XMT-1660 and XMT-2056, both set to enter the clinic in mid-2022 [18] - The company is exploring dose for XMT-1592, with a data-driven decision expected in the second half of 2022 [19] Q&A Session Summary Question: Discussion on business development and cash position - Management highlighted a strong capital position and outlined three pillars of business development strategy, including cytotoxic platforms and Immunosynthen platform [50][52] Question: Expectations for SGO presentation - Management confirmed that multiple posters will be presented, including data supporting the decision to move towards a lower dose of UpRi [60] Question: Exposure in Eastern Europe for ongoing studies - Management clarified that there is no exposure in Eastern Europe, with enrollment primarily in the US and Western Europe [63] Question: Changes in enrollment criteria for UPLIFT study - Management reported positive engagement from investigators and maintained guidance for Q3 completion of enrollment [71] Question: Insights on PFS from placebo arm in UP-NEXT study - Management indicated that the placebo arms in similar studies showed progression-free survival in the four to five month range, highlighting the unmet need [80] Question: Strategy for patient selection in UP-NEXT and UPLIFT studies - Management stated that UPLIFT could serve as a confirmatory study for high NaPi2b patients, while UP-NEXT is designed to include all patients regardless of NaPi2b status [84] Question: Confirmation of data cut for SGO update - Management confirmed that the SGO update will reflect a June 10 data cut, emphasizing the robustness of the data [87] Question: Benchmarks for UPGRADE interim data - Management indicated that the control arm of GOG-0213 is the most appropriate comparator, with response rates around 50% in earlier studies [93]