LifeSci Capital analyst Charles Zhu has maintained their neutral stance on MRSN stock, giving a Hold rating yesterday.
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Charles Zhu has given his Hold rating due to a combination of factors surrounding the acquisition of Mersana Therapeutics by DAWN. The deal, which includes an upfront payment and contingent value rights (CVRs), presents a favorable opportunity under the current circumstances. However, the focus of the CVRs on adenoid cystic carcinoma (ACC) rather than triple-negative breast cancer (TNBC) introduces some uncertainty.
While there is confidence in the potential of the Emi-Le data in TNBC, there are also significant clinical risks and financial challenges that Mersana Therapeutics faces. The company’s limited cash runway and market cap add to the risks of executing necessary financing. Additionally, DAWN’s emphasis on developing ACC, supported by promising data and a potential registration path, shifts the immediate focus away from TNBC, which may impact the stock’s performance in the near term.
In another report released yesterday, Truist Financial also downgraded the stock to a Hold with a $30.75 price target.