• Cash, Cash Equivalents, and Marketable Securities: $134.6 million at the end of 2024.
• Net Cash Used in Operating Activities: $19.3 million for Q4 2024, down from $32 million in Q4 2023.
• Collaboration Revenue: $16.4 million for Q4 2024, up from $10.7 million in Q4 2023.
• Research & Development Expenses: $22.3 million for Q4 2024, compared to $21.5 million in Q4 2023.
• General & Administrative Expenses: $8.9 million for Q4 2024, down from $10.1 million in Q4 2023.
• Net Loss: $14.1 million for Q4 2024, compared to $19.5 million in Q4 2023.

• Warning! GuruFocus has detected 8 Warning Signs with MRSN.

Release Date: March 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mersana Therapeutics Inc (NASDAQ:MRSN) reported positive initial clinical data for its lead dolasynthen ADC, Emi-Le, and started the expansion portion of its Phase 1 trial.
• Emi-Le was granted an additional fast track designation for a growing portion of the breast cancer population.
• The company observed confirmed objective responses in all enrolled tumor types, including triple-negative and hormone-receptor-positive breast cancer.
• Mersana's financial position is strong, with $134.6 million in cash, cash equivalents, and marketable securities, expected to support operations into 2026.
• Collaboration revenue increased to $16.4 million in Q4 2024, up from $10.7 million in the same period in 2023, due to increased collaboration with J&J, Merck KGaA, and GSK.

Negative Points

• Emi-Le's clinical trials faced challenges with AST elevation and proteinuria, although mitigation strategies are being implemented.
• The company is not exploring doses higher than 95 milligrams per meter square for Emi-Le due to observed adverse effects at higher doses.
• Mersana's net loss for Q4 2024 was $14.1 million, although this is an improvement from the previous year's loss.
• Research and development expenses increased to $22.3 million in Q4 2024, primarily due to costs associated with Emi-Le and XMT-2056.
• The competitive landscape remains challenging, with other companies also developing B7H4 ADCs, although Mersana sees opportunities due to recent competitor withdrawals.

Q & A Highlights

Q: Could you share the latest progress on how you are mitigating the AST elevation and proteinuria issue related to Emi-Le? How might this increase your confidence in maintaining the dose intensity at a higher dose level? A: AST does not result in meaningful dose delays, typically only about a week if it occurs. Proteinuria primarily causes dose delays at the highest dose range. We've amended the protocol to include prophylactic measures like ACE inhibitors and ARBs to minimize proteinuria. If proteinuria occurs but is asymptomatic, we can maintain dosing by reducing the dose instead of delaying it. We're testing this approach in the clinic to maintain dose intensity.

Q: Regarding your dose expansion criteria of having patients with one to four prior lines of therapy, what's your sense of the distribution of patients that you might be getting? A: It's too early to determine the distribution of patients with fewer versus more prior lines of therapy. However, our inclusion criteria ensure that patients with more than four prior lines are excluded from expansion.

Q: How are you currently thinking about establishing the final biomarker cutoff for B7H4 high? A: We expect the final biomarker cutoff to capture roughly 40% to 50% of the TNBC population. It would be surprising if it falls outside this range.

Q: Could you give us clarity on when we could expect some of the expansion cohort data up to 67 milligrams? Are you exploring other dosing intervals? A: We are not providing specific timing for the expansion cohort data release. We are continuing to explore different dosing schedules, but they are limited to the three we've previously shared.

Q: With the Pfizer program now discontinued, have you spoken to any KOLs who have been on both the Pfizer study and yours? How do they compare the two agents? A: Investigators have not shared confidential data from Pfizer. However, we were informed that Pfizer was not pursuing their B7H4 in TNBC post-topo, which led several sites to join our study as it was seen as a promising opportunity and the only option for their patients.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.