Mersana Therapeutics Provides Statement About SVB

Rhea-AI Summary

Mersana Therapeutics (NASDAQ: MRSN) provided an update on its capital resources on March 10, 2023. A minimal amount of the company’s resources is held in a checking account at Silicon Valley Bank (SVB), while most is secured in a custodial account and money market funds with other institutions. The company has borrowed $25 million from a loan agreement with Oxford Finance LLC and SVB, with an additional $15 million available. The recent closure of SVB does not trigger repayment under the loan agreement. Mersana is focused on developing antibody-drug conjugates (ADCs) to treat cancers with significant unmet needs.

Positive

• Mersana has secured $25 million in loans with an option for an additional $15 million.
• The closure of Silicon Valley Bank does not trigger repayment, ensuring capital stability.

Negative

• A de minimis amount of capital is held at Silicon Valley Bank, indicating potential liquidity risks.

CAMBRIDGE, Mass., March 10, 2023 (GLOBE NEWSWIRE) -- Mersana Therapeutics, Inc. (NASDAQ: MRSN), a clinical-stage biopharmaceutical company focused on discovering and developing a pipeline of antibody-drug conjugates (ADCs) targeting cancers in areas of high unmet medical need, today provided an update about its capital resources. A de minimis amount of Mersana’s capital is currently held in a checking account at Silicon Valley Bank (SVB). The balance of the company’s capital resources is held in a custodial account managed by another institution and in money market funds of institutions other than SVB.

Mersana has a loan and security agreement with Oxford Finance LLC and SVB. As previously disclosed, to date the company has borrowed $25 million under the loan agreement, and $15 million is available to be borrowed at the company’s option under the terms of the loan agreement. The recent closure of SVB and the appointment of the Federal Deposit Insurance Corporation as receiver is not a repayment trigger pursuant to the terms of the loan agreement.

About Mersana Therapeutics
Mersana Therapeutics is a clinical-stage biopharmaceutical company using its differentiated and proprietary ADC platforms to rapidly develop novel ADCs with optimal efficacy, safety and tolerability to meaningfully improve the lives of people fighting cancer. Mersana’s lead product candidate, upifitamab rilsodotin (UpRi), is a Dolaflexin ADC targeting NaPi2b that is being studied in UPLIFT, a single-arm registrational trial in patients with platinum-resistant ovarian cancer; UPGRADE-A, a Phase 1 clinical trial evaluating UpRi in combination with carboplatin; and UP-NEXT, a Phase 3 clinical trial of UpRi as monotherapy maintenance following treatment with platinum doublets in recurrent platinum-sensitive ovarian cancer. Mersana is also advancing XMT-1660, a Dolasynthen ADC targeting B7-H4, and XMT-2056, an Immunosynthen ADC targeting a novel epitope of human epidermal growth factor receptor 2 (HER2), in Phase 1 trials. In addition, multiple partners are using Mersana’s platforms to advance their ADC pipelines. Mersana routinely posts information that may be useful to investors on the “Investors & Media” section of its website at www.mersana.com.

Contact:
Jason Fredette
617-498-0020
jason.fredette@mersana.com

FAQ

What financial update did Mersana Therapeutics announce on March 10, 2023?

Mersana announced that a minimal amount of its capital is held at Silicon Valley Bank, with the majority in other accounts.

How much has Mersana borrowed under its loan agreement?

Mersana has borrowed $25 million and has an additional $15 million available under its loan agreement.

Does the closure of Silicon Valley Bank affect Mersana's loan agreement?

No, the closure of Silicon Valley Bank does not trigger a repayment under Mersana's loan agreement.

What is the focus of Mersana Therapeutics?

Mersana focuses on developing antibody-drug conjugates (ADCs) targeting cancers with high unmet medical needs.