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: -4.76%
• EPS Growth: 8.09%
• 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: -0.61
• Enterprise Value/Ebitda: 0.30
• 1Y Price Target: $30.75
• Price Target Upside: 10.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $29.00 ▲(4.39% Upside)

The overall stock score of 59 reflects significant financial challenges, including negative profitability and cash flow constraints. However, strong technical indicators suggest bullish momentum, which partially offsets the financial weaknesses. The valuation remains unattractive due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Strategic Acquisition

The acquisition by Day One Biopharmaceuticals provides Mersana with financial stability and resources to advance its ADC programs, potentially accelerating product development and market entry.

Clinical Progress

Significant clinical progress with Emi-Le indicates strong potential in treating rare cancers, enhancing Mersana's competitive position in the oncology sector.

Partnership Milestone

Reaching a milestone with GSK demonstrates successful collaboration and progress in the HER2-expressing tumors segment, strengthening Mersana's strategic partnerships.

Negative Factors

Financial Challenges

Ongoing financial challenges, including negative profitability and cash flow issues, pose risks to Mersana's operational sustainability and ability to fund future growth.

Revenue Decline

Declining revenue growth reflects challenges in generating consistent income, which could hinder long-term financial health and investment in R&D.

Balance Sheet Weakness

A weak balance sheet with negative equity and low solvency ratios indicates potential financial instability, limiting Mersana's ability to leverage future opportunities.

Mersana Therapeutics Business Overview & Revenue Model

Company Description

Mersana Therapeutics, Inc., a clinical stage biopharmaceutical company, develops antibody drug conjugates (ADC) for cancer patients with unmet need. It develops XMT-1592, a Dolasynthen ADC targeting NaPi2b-expressing tumor cells, which is in phase I clinical trial for the treatment of ovarian cancer and NSCLC adenocarcinoma. The company also develops XMT-1660, a B7-H4-targeted Dolasynthen ADC candidate; and XMT-2056, an immunosynthen development candidate. It has a strategic research and development partnerships with Merck KGaA and Asana BioSciences, LLC for the development of ADC product candidates utilizing Fleximer. The company was formerly known as Nanopharma Corp. and changed its name to Mersana Therapeutics, Inc. in November 2005. Mersana Therapeutics, Inc. was incorporated in 2001 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Mersana Therapeutics generates revenue primarily through collaborations, partnerships, and potential future product sales. The company seeks to enter strategic collaborations with larger pharmaceutical and biotechnology firms to develop and commercialize its product candidates. These partnerships can provide upfront payments, research funding, and milestone payments tied to the achievement of specific development and regulatory goals. Additionally, Mersana may receive royalties on sales of products that result from its collaborations. As the company progresses through clinical trials and potentially receives regulatory approvals for its therapies, it may also begin to generate revenue directly from product sales, depending on its commercialization strategies and market adoption.

Mersana Therapeutics Financial Statement Overview

Summary

Mersana Therapeutics faces significant financial challenges, with declining revenues, negative profitability, and a weak balance sheet. The company struggles with operational inefficiencies and cash flow constraints, posing risks to its financial stability. Strategic improvements are needed to enhance revenue growth and profitability.

Income Statement

Mersana Therapeutics shows declining revenue growth with a negative trajectory in profitability. The TTM data indicates a negative revenue growth rate of -4.57%, and the net profit margin is significantly negative at -211.21%. The company struggles with negative EBIT and EBITDA margins, reflecting operational inefficiencies and challenges in achieving profitability.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, leading to a negative debt-to-equity ratio. The return on equity is also negative, indicating losses relative to shareholder investments. The equity ratio is low, suggesting potential solvency risks.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a declining free cash flow growth rate of -6.75% in the TTM period. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio remains stable at 1.0, suggesting some consistency in cash flow relative to net income.

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	32.89M	40.50M	36.85M	26.58M	43.00K	-66.21M
EBITDA	-66.25M	-63.27M	-166.08M	-199.96M	-167.94M	-87.10M
Net Income	-70.08M	-69.19M	-171.67M	-204.21M	-170.06M	-88.05M
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	36.30M	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: 27.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 27.78 is above the 20-day moving average (MA) of 23.78, above the 50-day MA of 15.01, and above the 200-day MA of 10.37, indicating a bullish trend. The MACD of 4.15 indicates Positive momentum. The RSI at 83.60 is Negative, neither overbought nor oversold. The STOCH value of 53.62 is Neutral, 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	59 Neutral	$40.72M	-0.55	―	―	-4.76%	8.09%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNTI	47 Neutral	$58.37M	-0.67	-394.62%	―	―	78.60%
GRCE	46 Neutral	$50.75M	―	-13.15%	―	―	45.97%
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	$49.86M	-0.74	―	―	-100.00%	32.37%

Mersana Therapeutics Corporate Events

Mersana Therapeutics Faces High Stakes with Potential Day One Biopharmaceuticals Merger Delays

Mersana Therapeutics faces significant business risk due to potential delays or failure in completing its merger with Day One Biopharmaceuticals, Inc. The anticipated transaction, set to conclude by January 2026, involves a complex two-step process that, if unsuccessful, could lead to a decline in stock prices and a $5.6 million termination fee. Additionally, the failure to finalize the merger might result in negative publicity and strained relationships with stakeholders, including stockholders and suppliers. The company may also face litigation and enforcement proceedings, further diverting resources and attention from its core operations.

Mersana Therapeutics to be Acquired by Day One

Mersana Therapeutics is a clinical-stage biopharmaceutical company specializing in the development of antibody-drug conjugates (ADCs) aimed at treating cancers with high unmet medical needs. The company has developed proprietary platforms that generate a pipeline of product candidates targeting various cancers.

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.