Mersana Therapeutics(MRSN) - 2024 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2024, the company's net loss was $19.3 million, a decrease from$56.2 million for the same period in 2023[141] - As of March 31, 2024, the company had an accumulated deficit of $845.7 million[141] - Net loss improved by$36.9 million, from a loss of $56.2 million in Q1 2023 to a loss of$19.3 million in Q1 2024[160] - Total other income, net was consistent at $1.7 million in Q1 2024 compared to$1.6 million in Q1 2023[167] Research and Development - Total research and development costs for the three months ended March 31, 2024, were $18.7 million, down from$47.3 million in the same period of 2023[151] - External costs for the XMT-1660 program were $2.9 million for the three months ended March 31, 2024, compared to$3.5 million in 2023[151] - The company expects to incur significant research and development expenses over the next several years as it continues clinical development and manufacturing activities[155] - Research and development expenses decreased by $28.6 million, from$47.3 million in Q1 2023 to $18.7 million in Q1 2024[162] Collaboration and Revenue - The company recognized$3.2 million in collaboration revenue related to the Merck KGaA Agreement for the three months ended March 31, 2024, compared to $3.1 million in 2023[142] - Collaboration revenue increased by$1.4 million, from $7.8 million in Q1 2023 to$9.2 million in Q1 2024, primarily due to a 4.6 million increase from the Johnson & Johnson Agreement[161] - The company has entered into a global collaboration with GSK for the co-development and commercialization of XMT-2056[139] Clinical Trials - The Phase 1 clinical trial for XMT-1660 is currently enrolling patients, with initial data expected to be disclosed in the second half of 2024[136] - The FDA clinical hold on the Phase 1 trial of XMT-2056 was resolved in Q4 2023, and the trial is actively recruiting patients[136] Operational Changes - The company has discontinued the development of XMT-1536 and reduced its employee base by approximately 50% as part of a restructuring effort[138] - The company expects to incur significant general and administrative expenses over the next several years to support ongoing research and development activities[157] Cash Flow and Financial Position - Cash, cash equivalents, and marketable securities totaled 183.1 million as of March 31, 2024[173] - Net cash used in operating activities was $32.7 million in Q1 2024, compared to$29.0 million in Q1 2023[176] - Net cash used in investing activities was $72.5 million in Q1 2024, compared to net cash provided of$1.4 million in Q1 2023[177] - Net cash provided by financing activities was $5.8 million in Q1 2024, down from$21.5 million in Q1 2023[178] - As of March 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $183.1 million[186] - The company had$25.0 million outstanding under the New Credit Facility as of March 31, 2024[187] - The interest rate on the New Credit Facility is a floating rate, with a minimum of 8.50% or the prime rate plus 5.25%[187] Compliance and Controls - There were no material changes to the company's contractual obligations during the three months ended March 31, 2024[184] - The company reported no material changes to its critical accounting estimates during the same period[185] - The company is not currently exposed to market risk related to foreign currency exchange rates as of March 31, 2024[188] - The company's disclosure controls and procedures were evaluated as effective at the reasonable assurance level as of March 31, 2024[190] - There were no changes in the internal control over financial reporting that materially affected the company during the quarter ended March 31, 2024[191] - The company is not currently party to any material legal proceedings[193]