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Merus NV (MRUS)
:MRUS
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Merus (MRUS) AI Stock Analysis

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MRUS

Merus

(NASDAQ:MRUS)

Rating:61Neutral
Price Target:
$67.00
▲(0.10% Upside)
Merus's overall score is primarily influenced by strong technical indicators and positive corporate events, which are offset by financial performance challenges and negative valuation metrics. The company's recent public offering and promising trial results provide a positive outlook, but financial and valuation concerns remain.
Positive Factors
Cash Position
The strong ~$900MM cash position should provide runway.
Regulatory Path
The company is confident in the regulatory path for petosemtamab in head and neck squamous cell carcinoma, with phase 3 trials showing promising results in both HPV+ and HPV- patients.
Survival Rate
The 79% 12-month overall survival rate is considered clinically meaningful and exceeds expectations based on historical benchmarks.
Negative Factors
Cash for Trials
Management acknowledged they had insufficient cash to run a Phase 3 CRC study.
Investor Perception
Investors remain unappreciative of the opportunity in RAS/RAF-wildtype CRC, partly due to disappointing yet uninformed dose escalation data.
Investor Sentiment
Petosemtamab's opportunity remains unappreciated by investors, partially due to disappointing yet uninformative dose escalation data.

Merus (MRUS) vs. SPDR S&P 500 ETF (SPY)

Merus Business Overview & Revenue Model

Company DescriptionMerus N.V. (MRUS) is a clinical-stage oncology company that develops innovative bispecific antibody therapeutics designed to treat various types of cancer. The company is headquartered in the Netherlands and operates within the biotechnology and pharmaceutical sectors. Merus focuses on leveraging its proprietary Biclonics® technology platform to create multispecific antibodies that can simultaneously target multiple pathways in cancer cells, potentially improving the efficacy of cancer treatments.
How the Company Makes MoneyMerus generates revenue primarily through collaborations and partnerships with larger pharmaceutical companies. These agreements often involve upfront payments, milestone payments based on the achievement of specific development, regulatory, or sales goals, and royalties on potential future sales of any resulting products. The company also engages in research and development activities that may be funded by collaborative partners, contributing to its revenue streams. Additionally, Merus may receive grants and funding from government or non-profit organizations dedicated to advancing cancer research.

Merus Financial Statement Overview

Summary
Merus shows revenue growth but struggles with profitability and cash flow. The company has a strong equity position but ongoing net losses and negative free cash flow highlight financial challenges.
Income Statement
40
Negative
Merus has shown inconsistent revenue growth, with a noticeable increase to $54.73M in TTM from $36.13M in the previous year. Despite this growth, the company consistently reports net losses, with a TTM net income margin of -506.74% and declining EBIT and EBITDA margins, indicating significant operational challenges and profitability issues.
Balance Sheet
60
Neutral
The company maintains a strong equity position, with a high equity ratio of 81.55% in TTM, reflecting a stable capital structure. The debt-to-equity ratio is low at 0.30, indicating minimal leverage risk. However, ongoing net losses could erode equity over time if trends do not improve.
Cash Flow
45
Neutral
Merus has experienced negative free cash flow growth, with TTM free cash flow at -$239.68M. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. While financing cash flow remains positive, the reliance on external funding could pose sustainability concerns.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue56.23M36.13M43.95M41.59M49.11M29.94M
Gross Profit47.40M36.13M43.95M29.60M-37.16M-27.39M
EBITDA-276.91M-269.60M-154.01M-148.26M-77.75M-60.93M
Net Income-385.52M-215.33M-154.94M-131.19M-66.82M-85.51M
Balance Sheet
Total Assets980.18M785.13M455.49M376.54M456.60M231.22M
Cash, Cash Equivalents and Short-Term Investments710.22M537.03M355.18M290.23M410.43M207.75M
Total Debt2.25M9.91M12.16M13.47M3.75M3.95M
Total Liabilities138.44M134.77M99.15M129.49M140.40M128.95M
Stockholders Equity841.74M647.93M356.34M247.06M316.20M102.26M
Cash Flow
Free Cash Flow-313.32M-187.50M-146.19M-157.54M-60.50M-81.19M
Operating Cash Flow-313.08M-185.84M-142.21M-149.90M-59.63M-79.90M
Investing Cash Flow-227.59M-220.22M-27.02M2.80M-146.62M-1.49M
Financing Cash Flow358.98M494.01M230.09M58.74M281.95M39.52M

Merus Technical Analysis

Technical Analysis Sentiment
Positive
Last Price66.93
Price Trends
50DMA
57.46
Positive
100DMA
50.24
Positive
200DMA
47.71
Positive
Market Momentum
MACD
3.41
Negative
RSI
73.43
Negative
STOCH
83.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRUS, the sentiment is Positive. The current price of 66.93 is above the 20-day moving average (MA) of 62.10, above the 50-day MA of 57.46, and above the 200-day MA of 47.71, indicating a bullish trend. The MACD of 3.41 indicates Negative momentum. The RSI at 73.43 is Negative, neither overbought nor oversold. The STOCH value of 83.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRUS.

Merus Risk Analysis

Merus disclosed 82 risk factors in its most recent earnings report. Merus 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

Merus Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$4.05B7.8933.08%91.12%
71
Outperform
$3.98B27.9415.61%247.53%118.34%
61
Neutral
$0.00-58.66%42.77%-51.27%
60
Neutral
$0.00-27.92%-31.37%
58
Neutral
$4.61B-34.19%-17.87%-1.89%
52
Neutral
$4.37B-32.01%43.59%28.72%
50
Neutral
AU$2.60B3.65-58.14%2.69%36.37%13.78%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MRUS
Merus
67.45
17.44
34.87%
PTCT
PTC Therapeutics
51.11
18.66
57.50%
ZLAB
Zai Lab
38.05
20.80
120.58%
KRYS
Krystal Biotech
137.35
-43.02
-23.85%
AKRO
Akero Therapeutics
49.56
24.63
98.80%
RNA
Avidity Biosciences
38.26
-3.61
-8.62%

Merus Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Merus Announces Public Offering of Common Shares
Positive
Jun 5, 2025

On June 3, 2025, Merus N.V. entered into an underwriting agreement with several underwriters for a public offering of 5,263,158 common shares at $57.00 per share, expected to close around June 5, 2025. The company anticipates net proceeds of approximately $281.7 million, which will be used to fund operations into 2028, advance clinical development, and support corporate purposes, enhancing its financial stability and market position.

The most recent analyst rating on (MRUS) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Merus stock, see the MRUS Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Merus Announces Promising Phase 2 Trial Results
Positive
May 29, 2025

On May 22, 2025, Merus announced interim clinical data from a phase 2 trial of its bispecific antibody, petosemtamab, in combination with pembrolizumab. The trial showed promising results with a 63% overall response rate among 43 evaluable patients, including complete and partial responses across various cancer types and PD-L1 levels. The treatment was generally well tolerated, with no significant overlapping toxicities observed. The company plans to potentially share top line interim results of phase 3 trials in 2026.

The most recent analyst rating on (MRUS) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Merus stock, see the MRUS Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Merus Shareholders Approve Key Proposals at AGM
Neutral
May 22, 2025

On May 21, 2025, Merus N.V. held its annual general meeting of shareholders, with 89.20% of the company’s outstanding common shares represented. During the meeting, shareholders approved several proposals, including the adoption of the 2024 annual accounts, the appointment of KPMG as the external auditor for 2025, and the re-appointment of Anand Mehra, M.D. and Maxine Gowen, Ph.D. as non-executive directors. These decisions are expected to influence the company’s governance and operational strategies in the coming years.

The most recent analyst rating on (MRUS) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Merus stock, see the MRUS Stock Forecast page.

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 19, 2025