Oppenheimer says Day One paying up to $285M for Mersana ‘is interesting’

Oppenheimer analyst Matthew Biegler notes Day One (DAWN) announced it was acquiring Mersana Therapeutics (MRSN) for its B7-H4 ADC being tested in adenoid cystic carcinoma type 1. This takeout wasn’t on the firm’s short list, Oppenheimer says. On one hand, there’s an argument that Emi-Le fits alongside PTK7 as another ADC in the quiver. On the other hand, the firm believes that management was talking down PTK7, “so perhaps Emi-Le is its replacement?” It doesn’t come cheap – and they probably could have sourced something similar from China for cheaper, it argues. This suggests to Oppenheimer that management is seeing something in Emi-Le to warrant the 280% premium to Mersana shares. Given that ACC affects children and adults, the indication fits into Day One’s “Right from Day One” mantra. The firm welcomes the pipeline diversification away from reliance on OJEMDA, and reiterates a Perform rating on Day One.