Mersana Therapeutics (MRSN) AI Stock Analysis

• Market Cap: $36.08M
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.62
• Revenue Growth: -11.21%
• EPS Growth: 47.20%
• Country: US
• Employees: 102
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.19
• Shares Outstanding: 124,631,340
• 10 Day Avg. Volume: 3,534,507
• 30 Day Avg. Volume: 2,666,875
• PEG Ratio: 0.35
• Price to Book (P/B): 5.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.64
• Enterprise Value/Market Cap: 8.44
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 8.95
• Enterprise Value/Ebitda: -1.02
• 1Y Price Target: $3.00
• Price Target Upside: 900.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 44 Neutral
• Price Target: $0.50 ▲(66.67%Upside)

The most significant factor impacting Mersana Therapeutics' score is its challenging financial performance, characterized by negative equity and ongoing losses. While technical indicators suggest bearish momentum, the strategic restructuring and promising clinical data provide some optimism but are overshadowed by financial and operational hurdles.

Positive Factors

Clinical Data

The overall response rate for Emi-Le increased from 23% to 31%, which is considered encouraging.

Market Potential

Emi-Le offers an attractive option in the post-TOP1-ADC setting, especially with Trodelvy likely expanding to the frontline setting.

Negative Factors

Comparative Data Challenges

It is difficult to directly compare the data between Emi-Le and BG-C9074 due to different evaluation settings.

Efficacy Concerns

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 Business Overview & Revenue Model

Company Description

Mersana Therapeutics, Inc. (MRSN) is a clinical-stage biopharmaceutical company focused on developing a pipeline of antibody-drug conjugates (ADCs) targeting various types of cancer. The company operates within the biotechnology and pharmaceutical sectors, leveraging its proprietary platforms to create innovative therapies aimed at addressing unmet medical needs in oncology. Mersana's lead product candidates are designed to offer enhanced efficacy and safety profiles compared to existing cancer treatments.

How the Company Makes Money

Mersana 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 Financial Statement Overview

Summary

Mersana Therapeutics is experiencing significant financial strain with a negative equity position and persistent operational losses. The company faces liquidity issues despite a strong gross profit margin, reflecting challenges in financial stability.

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	34.01M	40.50M	36.85M	26.58M	43.00K	828.00K
Gross Profit	34.01M	40.50M	-111.41M	25.65M	-131.97M	-66.21M
EBITDA	-68.42M	-63.27M	-166.08M	-199.96M	-167.94M	-86.68M
Net Income	-74.01M	-69.19M	-171.67M	-207.54M	-169.21M	-88.40M
Balance Sheet
Total Assets	112.47M	144.66M	226.06M	334.34M	206.11M	273.40M
Cash, Cash Equivalents and Short-Term Investments	102.29M	134.62M	209.08M	280.71M	177.95M	255.09M
Total Debt	16.72M	28.60M	33.83M	36.30M	38.18M	16.57M
Total Liabilities	143.34M	154.17M	189.16M	242.28M	84.37M	45.31M
Stockholders Equity	-30.87M	-9.51M	36.90M	92.06M	121.74M	228.09M
Cash Flow
Free Cash Flow	-79.01M	-82.47M	-171.05M	-51.56M	-140.64M	-75.17M
Operating Cash Flow	-79.01M	-82.34M	-168.88M	-49.36M	-139.99M	-74.70M
Investing Cash Flow	110.98M	11.44M	119.88M	-152.72M	-648.00K	37.03M
Financing Cash Flow	-4.87M	4.09M	94.67M	153.02M	63.65M	230.41M

Mersana Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.3 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.35, and below the 200-day MA of 1.06, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.46 is Neutral, neither overbought nor oversold. The STOCH value of 21.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRSN.

Mersana Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	HK$15.71B	5.67	-7.43%	4.09%	11.60%	-21.06%
XLO	54 Neutral	$36.14M	―	-297.84%	―	―	53.92%
RPTX	49 Neutral	$61.76M	―	-71.64%	―	-98.90%	-177.17%
RPTX	49 Neutral	$61.76M	―	-71.64%	―	-98.90%	-177.17%
MRSN	44 Neutral	$36.08M	―	-505.14%	―	-11.21%	47.20%
CELU	44 Neutral	$47.42M	―	-232.51%	―	138.11%	76.60%
CELU	44 Neutral	$47.42M	―	-232.51%	―	138.11%	76.60%
GBIO	42 Neutral	$22.99M	―	-70.06%	―	146.47%	57.85%
GBIO	42 Neutral	$22.99M	―	-70.06%	―	146.47%	57.85%
STTK	41 Neutral	$36.98M	―	-71.90%	―	69.65%	27.98%
STTK	41 Neutral	$36.98M	―	-71.90%	―	69.65%	27.98%

Mersana Therapeutics Corporate Events

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.

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.

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.

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.

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.

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.

Mersana Therapeutics Announces Strategic Restructuring Plan

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.