Mersana Therapeutics (MRSN) AI Stock Analysis

• Market Cap: $45.86M
• Dividend Yield: N/A
• Average Volume (3M): 61.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.82
• Revenue Growth: 16.14%
• EPS Growth: 31.01%
• Country: US
• Employees: 102
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -4.87
• Shares Outstanding: 4,990,692
• 10 Day Avg. Volume: 95,463
• 30 Day Avg. Volume: 61,865
• 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: -0.43
• Enterprise Value/Revenue: -0.57
• Enterprise Value/Gross Profit: -0.58
• Enterprise Value/Ebitda: 0.29
• 1Y Price Target: $35.40
• Price Target Upside: 260.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 52 Neutral
• Price Target: $9.50 ▼(-3.26% Downside)

Mersana Therapeutics' overall score is primarily impacted by its weak financial performance, characterized by ongoing losses and high leverage. While technical indicators show moderate strength, and the earnings call provided some positive clinical updates, the negative valuation metrics and financial challenges weigh heavily on the stock's attractiveness.

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 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: 9.82
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 9.82 is above the 20-day moving average (MA) of 9.09, above the 50-day MA of 8.04, and below the 200-day MA of 10.03, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 39.76 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	52 Neutral	$45.86M	-0.66	―	―	16.14%	31.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNTI	47 Neutral	$56.24M	―	-169.54%	―	-100.00%	29.21%
GRCE	46 Neutral	$42.73M	-3.82	-16.78%	―	―	32.31%
LVTX	44 Neutral	$38.93M	―	-90.07%	―	-32.55%	-15.83%
ADAP	40 Underperform	$19.22M	―	-1341.37%	―	-53.61%	-93.14%
BCAB	35 Underperform	$36.06M	―	-813.88%	―	―	49.48%

Mersana Therapeutics Corporate Events

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.

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.

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.