Mersana Therapeutics(MRSN) - 2020 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company ended Q3 2020 with approximately $271 million in cash and cash equivalents, compared to approximately $100 million at the end of 2019 [38] - Net cash used in operating activities in Q3 2020 was $20.2 million [38] - Net loss for Q3 2020 was $22.5 million or $0.33 per share, compared to a net loss of $16.8 million or $0.35 per share for the same period in 2019 [42] Business Line Data and Key Metrics Changes - Collaboration revenue in Q3 2020 was immaterial, down from $0.8 million in Q3 2019, primarily due to the completion of research services associated with a previous agreement [40] - Research and development expenses increased to approximately $16.5 million in Q3 2020 from $13.7 million in Q3 2019, driven by increased manufacturing activities and clinical expenses for XMT-1536 and XMT-1592 [41] - General and administrative expenses rose to approximately $5.9 million in Q3 2020 from $4.4 million in Q3 2019, mainly due to increased consulting fees and facility-related costs [42] Market Data and Key Metrics Changes - The company reported encouraging data from the XMT-1536 Phase 1 study, with an overall response rate of 34% and a disease control rate of 79% among late-stage ovarian cancer patients [14][15] - The FDA granted Fast Track Designation for XMT-1536, highlighting the high unmet medical need for treatments in platinum-resistant ovarian cancer [21] Company Strategy and Development Direction - The company plans to hold an Analyst and Investor Day around year-end to provide updates on XMT-1536 and its development candidates [25][44] - There is a focus on exploring combination therapies for XMT-1536 in earlier lines of ovarian cancer treatment [49] - The company is also advancing its B7-H4 DolaLock ADC development candidate, which targets both tumor cells and immunosuppressive tumor-associated macrophages [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing development of XMT-1536 and its potential to address significant unmet medical needs in ovarian cancer [46] - The company acknowledged the challenges posed by the COVID-19 pandemic but emphasized its commitment to advancing its clinical programs [6][46] Other Important Information - The company is preparing to meet with the FDA to discuss the path to registration for XMT-1536 [23] - The company has initiated new international sites for the lung adenocarcinoma cohort in the expansion portion of the Phase 1 study [27] Q&A Session Summary Question: Can you talk about your thoughts and strategy for 1536 in earlier lines of ovarian cancer and in combination settings? - The company is working on a plan for 1536 and will share it at the analyst and investor meeting around year-end, highlighting opportunities for combination therapies [49] Question: Can you talk about how you're thinking about the lung cancer opportunity for 1536 and 1592? - The company has characterized NaPi2b expression in lung adenocarcinoma and is encouraged by early data, continuing to recruit patients for further insights [50][51] Question: What do you think is the minimum meaningful durability of response for 1536? - The company is gathering data to determine overall durability of response and will assess it based on FDA interactions and totality of data [56] Question: How important is the delta in terms of response rate between NaPi2b high and NaPi2b low? - The company is encouraged by the overall response rate and is focused on understanding how patient selection impacts outcomes [60] Question: Are there newer or preclinical models where you think you can differentiate yourself from some of the other approaches in the STING program? - The company is excited about the data from its Immunosynthen platform and will provide more details at the upcoming webinar [66][68] Question: What is going to change over the next two months that prevents you from outlining data disclosure plans today for 1592? - The company prefers to wait for more information from ongoing dose escalation before outlining data disclosure plans [72] Question: Have the U.S. sites picked up in terms of enrollment for 1536? - The company has seen a pickup in enrollment across all sites, with international sites contributing positively [74] Question: How should we think about expenses rounding out the year and into 2021? - The company reiterated that its current cash position provides more than two years of runway on its operating plan [75]