Analyst Charles Zhu of LifeSci Capital maintained a Buy rating on Mersana Therapeutics (MRSN – Research Report), retaining the price target of $3.00.
Charles Zhu has given his Buy rating due to a combination of factors, primarily focusing on Mersana Therapeutics’ strategic restructuring and prioritization plan. The company has decided to concentrate its efforts on the development of emiltatug ledadotin (Emi-Le), particularly targeting triple-negative breast cancer (TNBC), which is a promising area for growth.
By reducing its workforce by approximately 55% and cutting costs, Mersana aims to extend its cash runway into mid-2026, allowing it to focus on generating additional safety, tolerability, and clinical activity data for Emi-Le. This restructuring is expected to enhance the company’s financial stability and operational efficiency. Zhu believes that the potential benefits of Emi-Le, especially for post-topo TNBC patients, make this a sensible move, as the company addresses issues such as proteinuria management to improve treatment outcomes.