tiprankstipranks
Trending News
More News >
Mersana Therapeutics Inc (MRSN)
NASDAQ:MRSN
Advertisement

Mersana Therapeutics (MRSN) AI Stock Analysis

Compare
656 Followers

Top Page

MRSN

Mersana Therapeutics

(NASDAQ:MRSN)

Rating:44Neutral
Price Target:
$6.50
▼(-3.70%Downside)
Mersana Therapeutics' overall stock score is primarily impacted by its challenging financial performance and weak technical indicators. While recent clinical successes and debt settlement are positive, financial instability and operational restructuring pose significant risks.
Positive Factors
Clinical data
Emi-Le demonstrated encouraging Phase I activity in TNBC patients with high B7-H4 expression and prior treatment with a topoisomerase-I-inhibitor–based ADC, addressing an emerging and expanding unmet medical need.
Response Rate
The overall response rate (ORR) for Emi-Le increased from 23% to 31%, which is considered encouraging.
Negative Factors
Efficacy Comparison
The ORR for B7-H4-high TNBC patients falls short of the 35-38% ORR reported by PFE’s felmetatug vedotin in B7-H4-high TNBC.

Mersana Therapeutics (MRSN) vs. SPDR S&P 500 ETF (SPY)

Mersana Therapeutics Business Overview & Revenue Model

Company DescriptionMersana 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 MoneyMersana Therapeutics primarily generates revenue through collaborative agreements and partnerships with other pharmaceutical and biotechnology companies. These collaborations often involve upfront payments, milestone payments based on the achievement of specific developmental, regulatory, and commercial goals, as well as royalties on net sales of products developed using Mersana's proprietary ADC technology. The company also pursues licensing agreements for its technology platforms, contributing to its revenue streams. As a clinical-stage company, Mersana may not yet have significant product sales revenue, focusing instead on research and development funding through these strategic partnerships.

Mersana Therapeutics Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: -28.95%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While the clinical progress of Emi-Le in TNBC and the extension of the cash runway are positive, the significant workforce reduction, decline in collaboration revenue, and increased net loss are notable challenges.
Q1-2025 Updates
Positive Updates
Positive Clinical Data for Emi-Le
Emi-Le demonstrated a 29% Objective Response Rate (ORR) in patients with B7-H4 high tumors who received four or fewer prior lines of therapy, with a median Progression-Free Survival (PFS) of 16 weeks, and median Overall Survival (OS) not yet reached.
Strong Progress in TNBC Expansion Enrollment
Enrollment for the TNBC expansion cohort has advanced rapidly in 2025, indicating strong investigator enthusiasm and patient interest.
Enhanced Dosing Protocol
A new dosing regimen was established with 44.5 mg/m² on days 1 and 8 followed by 80 mg/m² every four weeks, showing promising tumor reductions of at least 30% in evaluable B7-H4 high patients.
Financial Guidance and Cash Runway
The company ended the first quarter of 2025 with $102.3 million in cash, projecting a cash runway into mid-2026, assuming no future collaborations or milestone payments.
Negative Updates
Strategic Restructuring and Workforce Reduction
Mersana announced a strategic restructuring, reducing the workforce by about 55% and halting internal pipeline development efforts to extend cash runway.
Decline in Collaboration Revenue
Collaboration revenue for Q1 2025 was $2.8 million, down from $9.2 million in Q1 2024, primarily due to reduced revenue from J&J and Merck KGaA collaborations.
Increased Net Loss
The net loss for Q1 2025 was $24.1 million, up from a net loss of $19.3 million in the same period in 2024, attributed to restructuring and other operational changes.
Company Guidance
During Mersana Therapeutics' Q1 2025 conference call, the company provided guidance on several key metrics and strategic initiatives. The company announced a strategic restructuring to extend its cash runway into mid-2026, with a focus on breast cancer and Phase I dose escalation work for XMT-2056. The restructuring involves a 55% reduction in workforce and a narrowing of clinical development efforts. Updated clinical data for Emi-Le (Dolasynthen B7-H4 ADC) presented at the ESMO Breast Cancer Congress showed promising results, particularly in patients with high B7-H4 expression and those who had received four or fewer prior lines of therapy, achieving an Objective Response Rate (ORR) of 29%, with the median Progression-Free Survival (PFS) at 16 weeks. Mersana ended Q1 2025 with $102.3 million in cash, with a net cash usage of $29.3 million for operating activities. The company anticipates sharing further clinical data in the second half of the year, focusing on patients with triple-negative breast cancer (TNBC) who received at least one prior topo-1 ADC.

Mersana Therapeutics Financial Statement Overview

Summary
Mersana Therapeutics is under financial stress, with declining revenues, substantial losses, negative equity, and cash flow challenges. Despite a high gross profit margin, the negative net profit margin and financial instability are major concerns.
Income Statement
30
Negative
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
20
Very Negative
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
35
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue40.50M36.85M26.58M43.00K828.00K
Gross Profit40.50M-111.41M25.65M-131.97M-66.21M
EBITDA-63.27M-166.08M-199.96M-167.94M-86.68M
Net Income-69.19M-171.67M-207.54M-169.21M-88.40M
Balance Sheet
Total Assets144.66M226.06M334.34M206.11M273.40M
Cash, Cash Equivalents and Short-Term Investments134.62M209.08M280.71M177.95M255.09M
Total Debt28.60M33.83M36.30M38.18M16.57M
Total Liabilities154.17M189.16M242.28M84.37M45.31M
Stockholders Equity-9.51M36.90M92.06M121.74M228.09M
Cash Flow
Free Cash Flow-82.47M-171.05M-51.56M-140.64M-75.17M
Operating Cash Flow-82.34M-168.88M-49.36M-139.99M-74.70M
Investing Cash Flow11.44M119.88M-152.72M-648.00K37.03M
Financing Cash Flow4.09M94.67M153.02M63.65M230.41M

Mersana Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.75
Price Trends
50DMA
8.64
Negative
100DMA
9.06
Negative
200DMA
23.03
Negative
Market Momentum
MACD
-0.32
Positive
RSI
38.72
Neutral
STOCH
6.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRSN, the sentiment is Negative. The current price of 6.75 is below the 20-day moving average (MA) of 8.21, below the 50-day MA of 8.64, and below the 200-day MA of 23.03, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of 6.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRSN.

Mersana Therapeutics Risk Analysis

Mersana Therapeutics disclosed 77 risk factors in its most recent earnings report. Mersana Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Mersana Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
¥354.29B10.98-2.99%2.48%11.72%-10.32%
56
Neutral
$76.40M-232.51%138.11%76.60%
54
Neutral
$36.25M-297.84%53.92%
53
Neutral
$65.62M-71.64%-98.90%-177.17%
51
Neutral
$29.56M-70.06%146.47%57.85%
44
Neutral
$34.65M-505.14%-11.21%47.20%
42
Neutral
$40.01M-71.90%69.65%27.98%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MRSN
Mersana Therapeutics
6.75
-38.25
-85.00%
CELU
Celularity
3.25
0.10
3.17%
GBIO
Generation Bio
4.51
-27.09
-85.73%
RPTX
Repare Therapeutics
1.51
-1.90
-55.72%
STTK
Shattuck Labs
0.77
-3.00
-79.58%
XLO
Xilio Therapeutics
0.69
-0.26
-27.37%

Mersana Therapeutics Corporate Events

Delistings and Listing ChangesStock Split
Mersana Therapeutics Announces Reverse Stock Split
Neutral
Jul 24, 2025

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.

The most recent analyst rating on (MRSN) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Mersana Therapeutics stock, see the MRSN Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Mersana Therapeutics Settles Debt with Oxford Finance
Positive
Jul 3, 2025

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.

The most recent analyst rating on (MRSN) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Mersana Therapeutics stock, see the MRSN Stock Forecast page.

Executive/Board ChangesShareholder MeetingsStock Split
Mersana Therapeutics Approves Key Proposals at Annual Meeting
Neutral
Jun 13, 2025

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.

The most recent analyst rating on (MRSN) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Mersana Therapeutics stock, see the MRSN Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Mersana Therapeutics Reports Positive Phase 1 Trial Results
Positive
Jun 2, 2025

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.

The most recent analyst rating on (MRSN) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Mersana Therapeutics stock, see the MRSN Stock Forecast page.

Business Operations and Strategy
Mersana Therapeutics Announces Strategic Restructuring Plan
Negative
May 6, 2025

On May 6, 2025, Mersana Therapeutics announced a strategic restructuring plan that includes a 55% workforce reduction, aiming to extend its cash resources into mid-2026. This plan involves focusing on the development of Emi-Le for breast cancer and continuing support for XMT-2056 trials, while reducing other research activities and internal pipeline development.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025