Mersana Therapeutics (MRSN) AI Stock Analysis

• Market Cap: $36.13M
• Dividend Yield: N/A
• Average Volume (3M): 126.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.76
• Revenue Growth: 16.14%
• EPS Growth: 31.01%
• Country: US
• Employees: 102
• Sector: Healthcare
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): -4.87
• Shares Outstanding: 4,990,692
• 10 Day Avg. Volume: 113,240
• 30 Day Avg. Volume: 126,809
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.55
• Enterprise Value/Revenue: -0.57
• Enterprise Value/Gross Profit: -0.58
• Enterprise Value/Ebitda: 0.29
• 1Y Price Target: $30.67
• Price Target Upside: 320.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 45 Neutral
• Price Target: $7.00 ▼(-3.98% Downside)

Mersana Therapeutics' overall stock score is primarily impacted by its challenging financial performance, which poses substantial risks. While there are positive developments in clinical trials and corporate events, these are overshadowed by ongoing financial instability and bearish technical indicators.

Positive Factors

Clinical Trials

The data presented from dose escalation and backfill cohorts from the Phase I trial of Emi-Le was viewed as incrementally positive for its path forward.

Financial Milestones

Achievement of a $15M development milestone from GSK for the XMT-2056 program was announced.

Negative Factors

Financial Constraints

Company has approximately 0.8 years of cash left, indicating potential financial constraints.

Financial Performance

Mersana reported a net loss of $24.3 million, which was slightly worse than the estimate of a loss of $22.5 million and consensus estimates of a loss of $19.9 million.

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 is under significant financial stress, with negative equity, declining revenues, and substantial net losses. The negative cash flow and reliance on external financing further highlight the financial challenges.

Income Statement

Mersana Therapeutics shows a volatile revenue trajectory with significant net losses. The TTM data indicates a gross profit margin of 100% due to revenue equaling gross profit, but the net profit margin remains negative at -217.58%, reflecting substantial expenses. Revenue declined by 16% from the previous year, and the EBIT and EBITDA margins are also negative, indicating ongoing operational challenges.

Balance Sheet

The company's balance sheet reveals financial strain, with negative stockholders' equity indicating liabilities exceeding assets. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative, reflecting financial instability. These factors suggest high leverage and potential liquidity issues.

Cash Flow

Cash flow analysis shows a challenging environment, with negative free cash flow and operating cash flow. The free cash flow to net income ratio is not favorable, as both metrics are negative, indicating cash burn. However, investing cash flows positively due to asset sales, offering some liquidity relief.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.77M	40.50M	36.85M	26.58M	43.00K	828.00K
Gross Profit	34.48M	38.87M	-111.41M	25.65M	-131.97M	-66.21M
EBITDA	-68.88M	-63.27M	-166.08M	-199.96M	-167.94M	-86.68M
Net Income	-74.04M	-69.19M	-171.67M	-207.54M	-169.21M	-88.40M
Balance Sheet
Total Assets	84.57M	144.66M	226.06M	334.34M	206.11M	273.40M
Cash, Cash Equivalents and Short-Term Investments	76.97M	134.62M	209.08M	280.71M	177.95M	255.09M
Total Debt	20.62M	28.60M	33.83M	36.30M	38.18M	16.57M
Total Liabilities	137.72M	154.17M	189.16M	242.28M	84.37M	45.31M
Stockholders Equity	-53.15M	-9.51M	36.90M	92.06M	121.74M	228.09M
Cash Flow
Free Cash Flow	-79.76M	-82.47M	-171.05M	-51.56M	-140.64M	-75.17M
Operating Cash Flow	-79.76M	-82.34M	-168.88M	-49.36M	-139.99M	-74.70M
Investing Cash Flow	105.86M	11.44M	119.88M	-152.72M	-648.00K	37.03M
Financing Cash Flow	-8.13M	4.09M	94.67M	153.02M	63.65M	230.41M

Mersana Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.29
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 7.29 is above the 20-day moving average (MA) of 6.93, below the 50-day MA of 7.89, and below the 200-day MA of 19.56, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 57.30 is Neutral, neither overbought nor oversold. The STOCH value of 87.80 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
RPTX	60 Neutral	$65.73M	―	-69.96%	―	-99.64%	-59.17%
CELU	56 Neutral	$86.46M	―	-232.51%	―	138.11%	76.60%
XLO	54 Neutral	$35.33M	―	-277.74%	―	536.44%	63.68%
GBIO	50 Neutral	$43.04M	―	-85.45%	―	61.15%	54.71%
STTK	47 Neutral	$49.34M	―	-73.39%	―	-27.33%	34.66%
Sector *	46 Neutral	C$209.14M	-0.30	-24.12%	3.18%	19.38%	-2.35%
MRSN	45 Neutral	$36.13M	―	-505.14%	―	16.14%	31.01%

Mersana Therapeutics Corporate Events

Mersana Therapeutics Announces Reverse Stock Split

On July 24, 2025, Mersana Therapeutics announced a 1-for-25 reverse stock split of its common stock to comply with Nasdaq’s minimum bid price requirement. This corporate action, effective July 25, 2025, aims to consolidate shares and adjust equity incentive plans, with trading on a post-split basis commencing July 28, 2025.

Mersana Therapeutics Settles Debt with Oxford Finance

On July 1, 2025, Mersana Therapeutics, Inc. settled its debt obligations with Oxford Finance LLC and associated lenders by repaying approximately $17.9 million, effectively discharging all its indebtedness under the loan agreement dated October 29, 2021. This financial move signifies a strategic step for Mersana, potentially enhancing its financial stability and operational flexibility in the competitive biotechnology sector.

Mersana Therapeutics Approves Key Proposals at Annual Meeting

On June 12, 2025, Mersana Therapeutics held its Annual Meeting of Stockholders, where four key proposals were voted on. The stockholders elected three Class II directors, approved executive compensation, ratified the selection of Ernst & Young LLP as the independent accounting firm, and approved a reverse stock split proposal, indicating a strategic move to potentially adjust the company’s stock structure.

Mersana Therapeutics Reports Positive Phase 1 Trial Results

On June 2, 2025, Mersana Therapeutics announced positive interim data from its Phase 1 clinical trial of Emi-Le, a B7-H4-directed Dolasynthen ADC, at the ASCO Annual Meeting. The trial showed promising objective response rates in various cancer types, including triple-negative breast cancer and adenoid cystic carcinoma, with a favorable safety profile. These results highlight Emi-Le’s potential to address high unmet needs in the ADC field.