Merus (MRUS) AI Stock Analysis

• Market Cap: $7.19B
• Dividend Yield: N/A
• Average Volume (3M): 3.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 59.77%
• EPS Growth: -92.92%
• Country: US
• Employees: 260
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 75,784,440
• 10 Day Avg. Volume: 1,964,361
• 30 Day Avg. Volume: 3,834,101
• PEG Ratio: -1.07
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 74.74
• P/FCF Ratio: -14.40
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $97.71
• Price Target Upside: 2.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 54 Neutral
• Price Target: $96.00 ▲(0.99% Upside)

Merus's stock score is primarily influenced by its strong technical momentum, which is offset by significant financial performance challenges and poor valuation metrics. The stock's upward trend is notable, but the lack of profitability and cash flow issues present substantial risks.

Positive Factors

Revenue Growth

Merus's positive revenue growth trend indicates successful market penetration and increasing demand for its innovative cancer therapies, which is crucial for long-term sustainability and expansion in the competitive biotechnology sector.

Strategic Partnerships

Strategic partnerships with larger pharmaceutical companies provide Merus with financial support and risk-sharing opportunities, enhancing its ability to advance clinical programs and bring innovative therapies to market.

Low Debt Levels

Low debt levels provide Merus with financial stability and flexibility, allowing it to invest in R&D and strategic initiatives without the burden of high interest obligations, which is vital for a clinical-stage biotech firm.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, reflected in negative net profit margins, indicate that Merus is struggling to convert its revenue into profit, which could hinder its ability to sustain operations and fund future growth.

Cash Flow Issues

Negative cash flow metrics suggest liquidity constraints, which could limit Merus's ability to invest in R&D and strategic initiatives, potentially impacting its long-term growth and competitive position in the biotech industry.

Earnings Volatility

Earnings volatility reflects underlying business instability, which can create uncertainty for investors and challenge Merus's ability to plan and execute long-term strategic initiatives effectively in the biotechnology sector.

Merus Business Overview & Revenue Model

Company Description

Merus N.V., a clinical-stage immuno-oncology company, engages in the discovery and development of bispecific antibody therapeutics in the Netherlands. Its bispecific antibody candidate pipeline includes Zenocutuzumab (MCLA-128), which is in a phase 2 clinical trials for the treatment of patients with metastatic breast cancer, as well as in Phase 1/2 clinical trials for the treatment of solid tumors that harbor Neuregulin 1. The company is also developing MCLA-158, which is in a phase I clinical trial for the treatment of solid tumors; MCLA-145, which is in phase 1 clinical trials for the treatment of solid tumors; MCLA-129, which is in phase 1/2 clinical trials for the treatment of patients with advanced non-small cell lung cancer and other solid tumors; and ONO-4685 that is Phase 1 clinical trial to treat relapsed/refractory T cell lymphoma. In addition, it has collaboration agreement with Betta Pharmaceuticals Co. Ltd for the research and development of stage bispecific antibody candidates include MCLA-129; and collaboration with Incyte Corporation for the development of MCLA-145. The company was incorporated in 2003 and is headquartered in Utrecht, the Netherlands.

How the Company Makes Money

Merus generates revenue primarily through partnerships and collaborations with larger pharmaceutical companies, which may involve upfront payments, milestone payments, and royalties on future sales of products developed from their technology. By entering into strategic alliances, Merus can share the financial risks associated with drug development while receiving funding to support its research initiatives. Additionally, the company may also generate revenue through grants and government funding aimed at supporting innovative cancer therapies. As Merus advances its clinical programs and moves closer to commercialization, it may also expect to generate revenue from product sales once its therapies receive regulatory approval.

Merus Financial Statement Overview

Summary

Merus demonstrates strong cost management with a consistent gross profit margin, but faces significant profitability and cash flow challenges. The low debt levels provide financial stability, yet ongoing losses and negative cash flows pose risks to long-term sustainability.

Income Statement

Merus shows a consistent gross profit margin of 100%, indicating effective cost management relative to revenue. However, the company faces challenges with negative net profit margins and EBIT margins, reflecting ongoing losses. Revenue growth is positive in the TTM period, but historical volatility suggests instability.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating prudent leverage management. However, the negative return on equity highlights ongoing profitability challenges. The equity ratio is solid, suggesting a stable capital structure.

Cash Flow

Merus has a high free cash flow to net income ratio, indicating efficient cash flow management relative to net losses. However, negative operating cash flow and free cash flow growth rates suggest liquidity challenges and potential cash constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.37M	34.88M	39.81M	38.84M	43.15M	24.51M
Gross Profit	-116.99M	12.96M	29.31M	28.88M	-43.12M	-32.82M
EBITDA	-311.93M	-260.24M	-139.50M	-148.26M	-77.75M	-60.93M
Net Income	-343.07M	-207.85M	-140.34M	-122.52M	-58.70M	-70.00M
Balance Sheet
Total Assets	980.18M	785.13M	455.49M	376.54M	456.60M	231.22M
Cash, Cash Equivalents and Short-Term Investments	710.22M	537.03M	355.18M	290.23M	410.43M	207.75M
Total Debt	11.00M	9.91M	12.16M	13.47M	3.75M	3.95M
Total Liabilities	138.44M	134.77M	99.15M	129.49M	140.40M	128.95M
Stockholders Equity	841.74M	647.93M	356.34M	247.06M	316.20M	102.26M
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	-27.02M	2.80M	-146.62M	-1.49M
Financing Cash Flow	358.98M	494.01M	230.09M	58.74M	281.95M	39.52M

Merus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 95.06
• 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 MRUS, the sentiment is Positive. The current price of 95.06 is above the 20-day moving average (MA) of 94.67, above the 50-day MA of 81.10, and above the 200-day MA of 57.50, indicating a bullish trend. The MACD of 3.66 indicates Positive momentum. The RSI at 78.53 is Negative, neither overbought nor oversold. The STOCH value of 57.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRUS.

Merus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	―	$5.47B	38.46	15.61%	―	116.09%	35.29%
PTCT	―	$5.43B	9.79	―	―	96.00%	―
AKRO	―	$4.38B	-14.26	-31.14%	―	―	-11.39%
MRUS	―	$7.19B	―	-48.54%	―	59.77%	-92.92%
RNA	―	$10.17B	―	-37.76%	―	1.23%	-20.45%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZLAB	―	$2.88B	-12.77	-28.39%	―	32.38%	33.47%

Merus Corporate Events

Merus Enters Transaction Agreement with Genmab

On September 29, 2025, Merus N.V. entered into a Transaction Agreement with Genmab A/S and its subsidiary, Genmab Holding II B.V., for a tender offer to purchase all outstanding shares of Merus at $97.00 per share. This agreement, which includes subsequent offering periods and back-end transactions, aims to make Merus an indirect wholly owned subsidiary of Genmab. The transaction will lead to the delisting of Merus’s shares from Nasdaq and cessation of its reporting obligations. The agreement is subject to various conditions, including shareholder approval and regulatory clearances, and outlines specific termination rights and fees.

The most recent analyst rating on (MRUS) stock is a Hold with a $97.00 price target. To see the full list of analyst forecasts on Merus stock, see the MRUS Stock Forecast page.

Merus N.V.’s Phase 3 Study on Petosemtamab: A Potential Game-Changer for Head and Neck Cancer

Merus N.V. is conducting a Phase 3 study titled ‘A Phase 3 Open-label, Randomized Controlled Study to Evaluate the Efficacy and Safety of Petosemtamab Compared With Investigator’s Choice Monotherapy Treatment in Previously Treated Patients With Incurable, Metastatic/Recurrent Head and Neck Squamous Cell Carcinoma.’ The study aims to assess the effectiveness and safety of petosemtamab against standard monotherapy options in patients with advanced head and neck squamous cell carcinoma (HNSCC), a significant area of unmet medical need.

Merus N.V.’s Promising Phase 3 Study on Head and Neck Cancer Treatment

Merus N.V. is conducting a Phase 3 clinical study titled ‘A Phase 3 Study to Evaluate Petosemtamab Plus Pembrolizumab vs Pembrolizumab in First-line Treatment of Head and Neck Cancer (LiGeR – HN1).’ The study aims to assess the efficacy and safety of combining petosemtamab with pembrolizumab compared to pembrolizumab alone in treating recurrent or metastatic PD-L1+ head and neck squamous cell carcinoma. This research is significant as it explores potential advancements in cancer treatment, offering hope for improved patient outcomes.

Merus N.V. Reports Q2 2025 Financial Results

Merus N.V., a Netherlands-based oncology company, focuses on developing innovative antibody therapeutics, with a notable presence in the biopharmaceutical industry. The company is known for its proprietary Triclonics® platform used in the development of multispecific antibody products.

Merus N.V.’s Phase 3 Study on Petosemtamab: A Potential Game-Changer for HNSCC Treatment

Merus N.V. is conducting a Phase 3 clinical study titled ‘A Phase 3 Open-label, Randomized Controlled Study to Evaluate the Efficacy and Safety of Petosemtamab Compared With Investigator’s Choice Monotherapy Treatment in Previously Treated Patients With Incurable, Metastatic/Recurrent Head and Neck Squamous Cell Carcinoma.’ The study aims to assess the efficacy and safety of Petosemtamab, a promising drug for patients with head and neck squamous cell carcinoma (HNSCC) who have previously undergone anti-PD-1 and platinum-based therapies. This study is significant as it targets a challenging patient population with limited treatment options.