Mersana Therapeutics (MRSN) AI Stock Analysis

• Market Cap: $40.72M
• Dividend Yield: N/A
• Average Volume (3M): 61.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.71
• Revenue Growth: 16.14%
• EPS Growth: 31.01%
• Country: US
• Employees: 102
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.51
• Shares Outstanding: 4,990,692
• 10 Day Avg. Volume: 95,463
• 30 Day Avg. Volume: 61,865
• PEG Ratio: 0.04
• Price to Book (P/B): -18.43
• Price to Sales (P/S): 4.33
• P/FCF Ratio: -2.12
• Enterprise Value/Market Cap: -0.49
• Enterprise Value/Revenue: -0.60
• Enterprise Value/Gross Profit: -0.91
• Enterprise Value/Ebitda: 0.34
• 1Y Price Target: $30.75
• Price Target Upside: 10.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $28.00 ▲(0.29% Upside)

Mersana Therapeutics' overall stock score is driven by significant financial challenges, despite strong technical momentum and clinical progress. The financial instability and valuation concerns weigh heavily, though positive technical indicators and promising clinical trial results provide some optimism.

Positive Factors

Clinical Progress

The strong clinical progress of Emi-Le, especially in rare cancers, enhances Mersana's competitive edge in oncology, potentially leading to future revenue streams from successful drug approvals.

Strategic Partnerships

Milestone achievements with partners like GSK validate Mersana's technology and provide financial support, enhancing its ability to sustain R&D efforts and expand its pipeline.

Cash Runway

A solid cash position ensures operational stability and allows Mersana to continue its development programs without immediate financial distress, supporting long-term strategic goals.

Negative Factors

Financial Challenges

Persistent financial struggles, including high leverage and ongoing losses, threaten Mersana's financial health, potentially limiting its ability to invest in growth and innovation.

Cash Flow Issues

Negative cash flows indicate poor cash management, which can constrain Mersana's ability to fund operations and invest in new opportunities, impacting long-term sustainability.

Limited Revenue Growth

Modest revenue growth from collaborations highlights challenges in scaling revenue, which could impede Mersana's ability to achieve financial independence and fund future R&D.

Mersana Therapeutics Business Overview & Revenue Model

Company Description

Mersana Therapeutics (MRSN) is a biopharmaceutical company focused on developing innovative antibody-drug conjugates (ADCs) for the treatment of cancer. The company leverages its proprietary Fleximer technology platform to create differentiated therapies aimed at improving patient outcomes in oncology. Mersana's pipeline includes candidates designed to target specific tumor types, with an emphasis on addressing unmet medical needs in various malignancies.

How the Company Makes Money

Mersana Therapeutics generates revenue primarily through strategic partnerships and collaborations with larger pharmaceutical companies, who provide funding for research and development in exchange for rights to co-develop or commercialize specific drug candidates. The company also aims to monetize its proprietary technologies by licensing them to other firms. Additionally, Mersana may receive milestone payments and royalties based on the commercial success of partnered products. As the company advances its clinical trials and potentially achieves regulatory approvals for its drug candidates, it could also generate revenue through direct sales of its therapies.

Mersana Therapeutics Financial Statement Overview

Summary

Mersana Therapeutics faces significant financial challenges, including ongoing losses, high leverage, and negative cash flows. Despite minor improvements in revenue and free cash flow growth, the overall financial health remains concerning.

Income Statement

Mersana Therapeutics shows a challenging financial trajectory with consistent negative net profit margins and EBIT margins over the years, indicating ongoing losses. Despite a slight revenue growth in the TTM period, the company struggles with profitability, as evidenced by negative EBIT and EBITDA margins. The gross profit margin is positive in the TTM, but overall profitability remains a concern.

Balance Sheet

The balance sheet reveals a precarious financial position with negative stockholders' equity in the TTM, indicating potential solvency issues. The debt-to-equity ratio is negative, reflecting high leverage and financial instability. Return on equity is positive in the TTM, but this is due to negative equity, which is not a sustainable position.

Cash Flow

Cash flow analysis highlights significant challenges, with negative operating and free cash flows throughout the periods. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. Free cash flow growth is positive in the TTM, but overall cash flow management remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.18M	40.50M	36.85M	26.58M	43.00K	828.00K
Gross Profit	21.88M	38.87M	-111.41M	25.65M	-131.97M	-66.21M
EBITDA	-59.18M	-63.27M	-166.08M	-199.96M	-167.94M	-86.68M
Net Income	-70.08M	-69.19M	-171.67M	-207.54M	-169.21M	-88.40M
Balance Sheet
Total Assets	62.69M	144.66M	226.06M	334.34M	206.11M	273.40M
Cash, Cash Equivalents and Short-Term Investments	56.39M	134.62M	209.08M	280.71M	177.95M	255.09M
Total Debt	2.29M	28.60M	33.83M	36.54M	38.18M	16.66M
Total Liabilities	122.22M	154.17M	189.16M	242.28M	84.37M	45.31M
Stockholders Equity	-59.54M	-9.51M	36.90M	92.06M	121.74M	228.09M
Cash Flow
Free Cash Flow	-74.37M	-82.47M	-171.05M	-51.56M	-140.64M	-75.17M
Operating Cash Flow	-74.37M	-82.34M	-168.88M	-49.36M	-139.99M	-74.70M
Investing Cash Flow	77.77M	11.44M	119.88M	-152.72M	-648.00K	37.03M
Financing Cash Flow	-25.87M	4.09M	94.67M	153.02M	63.65M	230.41M

Mersana Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRSN, the sentiment is Positive. The current price of 27.92 is above the 20-day moving average (MA) of 11.14, above the 50-day MA of 9.34, and above the 200-day MA of 9.54, indicating a bullish trend. The MACD of 2.60 indicates Negative momentum. The RSI at 89.63 is Negative, neither overbought nor oversold. The STOCH value of 84.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRSN.

Mersana Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRSN	56 Neutral	$40.72M	-0.55	―	―	16.14%	31.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNTI	47 Neutral	$42.33M	-0.48	-394.62%	―	-100.00%	29.21%
GRCE	46 Neutral	$42.73M	-3.75	-13.15%	―	―	32.31%
LVTX	44 Neutral	$42.75M	-1.54	-101.50%	―	-32.06%	16.38%
ADAP	41 Neutral	―	―	-1341.37%	―	-53.61%	-93.14%
BCAB	35 Underperform	$46.39M	-0.69	―	―	―	49.48%

Mersana Therapeutics Corporate Events

Mersana Therapeutics Announces Merger with Day One

On November 12, 2025, Mersana Therapeutics entered into a merger agreement with Day One Biopharmaceuticals, under which Day One will acquire Mersana through a tender offer followed by a merger. The deal offers $25.00 per share in cash, plus contingent value rights (CVRs) potentially worth up to $30.25 per share, totaling a deal value of approximately $285 million. The merger, unanimously approved by Mersana’s board, is expected to close by January 2026, subject to customary conditions. This acquisition highlights the potential value of Mersana’s ADCs, particularly the B7-H4-directed Dolasynthen ADC, Emi-Le, and aims to support its development for treating adenoid cystic carcinoma.

The most recent analyst rating on (MRSN) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Mersana Therapeutics stock, see the MRSN Stock Forecast page.

Mersana Therapeutics Faces Nasdaq Non-Compliance Notice

On September 5, 2025, Mersana Therapeutics received a notice from Nasdaq indicating non-compliance with the Nasdaq Listing Rule 5450(b)(2)(A), which requires a minimum Market Value of Listed Securities of $50 million. Although this notice does not immediately affect the company’s stock listing, Mersana has until March 4, 2026, to regain compliance by achieving the required market value for at least ten consecutive business days. Failure to comply could lead to delisting, although the company can appeal the decision. Mersana plans to monitor its market value and explore options to meet the compliance requirements.

The most recent analyst rating on (MRSN) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Mersana Therapeutics stock, see the MRSN Stock Forecast page.

Mersana Therapeutics’ Earnings Call Highlights Progress and Challenges

Mersana Therapeutics’ recent earnings call conveyed a cautiously optimistic sentiment, underscoring significant advancements in their clinical trials, notably within the Emi-Le and XMT-2056 programs. Despite these achievements, the company acknowledged ongoing challenges, particularly in managing proteinuria and achieving substantial revenue growth. Nevertheless, Mersana maintains a stable financial outlook, which provides a balanced perspective on their current position.

Mersana Therapeutics Faces Financial Strain Amid U.S. Tariff Uncertainties

Mersana Therapeutics faces significant business risks due to the uncertainty surrounding U.S. trade policy, particularly the tariffs imposed by the Trump Administration. The 10% baseline reciprocal tariff on all U.S. trading partners, along with higher tariffs on China, Canada, and Mexico, could adversely affect the company’s supply chain and increase production costs. Additionally, the ongoing Section 232 investigation into pharmaceutical imports may lead to further tariffs, exacerbating potential disruptions. These factors could delay the development and approval of Mersana’s product candidates, posing a material threat to its financial condition and operational results.

Mersana Therapeutics Reports Q2 2025 Financial Results

Mersana Therapeutics, a clinical-stage biopharmaceutical company, is focused on developing novel antibody-drug conjugates (ADCs) for cancer treatment, leveraging its proprietary Dolasynthen and Immunosynthen platforms.