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Mersana Therapeutics Inc (MRSN)
NASDAQ:MRSN
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Mersana Therapeutics
(NASDAQ:MRSN)
36Underperform
Positive Factors
Clinical Development
The company has initiated dose expansion in TNBC patients, advancing their research and potential treatment options.
Competitive Advantage
Pfizer's discontinuation of their B7-H4-targeted ADC positions Emi-Le as the leading competing asset.
Financial Performance
MRSN reported EPS of $(0.11) vs. consensus of $(0.19) indicating better-than-expected financial performance.
Negative Factors
Management Challenges
Management is more concerned with decreasing dose delays rather than decreasing proteinuria events, indicating ongoing challenges with managing side effects.
Patient Pool Limitation
Patients with 5 or more prior lines of therapy will be excluded from expansion, which may limit the patient pool.
Mersana Therapeutics (MRSN) vs. S&P 500 (SPY)
Market Cap
$47.30M
Dividend YieldN/A
Average Volume (3M)3.51M
Price to Earnings (P/E)―
Beta (1Y)2.76
Revenue Growth9.88%
EPS Growth62.31%
CountryUS
Employees102
SectorHealthcare
Sector Strength72
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.56
Shares Outstanding124,631,340
10 Day Avg. Volume3,335,538
30 Day Avg. Volume3,509,669
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.31
Price to Cash Flow (P/CF)-0.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.67Price Target Upside1128.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Mersana Therapeutics Business Overview & Revenue Model
Company DescriptionMersana Therapeutics, Inc. (MRSN) is a biotechnology company focused on the development of innovative antibody-drug conjugates (ADCs) for the treatment of cancer. The company leverages its proprietary ADC platforms, including Dolaflexin and Dolasynthen, to design therapies that target and deliver potent anti-cancer agents directly to tumor cells, minimizing damage to healthy tissues. Mersana's pipeline includes multiple clinical and preclinical programs aimed at addressing unmet medical needs in oncology.
How the Company Makes MoneyMersana Therapeutics primarily generates revenue through strategic collaborations and partnerships with pharmaceutical companies. These collaborations often involve upfront payments, milestone payments based on the achievement of specific clinical, regulatory, and commercial milestones, as well as potential royalties on future product sales. Additionally, the company may receive payments for research and development services provided to its partners. Mersana's ability to successfully advance its proprietary ADC technologies and bring its drug candidates to market is a critical factor in its revenue generation strategy.
Mersana Therapeutics Financial Statement Overview
Summary
Mersana Therapeutics faces significant financial challenges, with fluctuating revenue and persistent profitability issues. The balance sheet shows negative stockholders' equity and reliance on liabilities, indicating financial instability. Cash flows are negative, impacting operational sustainability without external financing.Income Statement
Mersana Therapeutics has shown a fluctuating revenue trend with a notable decline from 2019 to 2021, followed by a recovery. However, profitability remains a significant issue with negative EBIT and net income margins. The gross profit margin improved in the latest year but remains inadequate to cover operating expenses, resulting in continued operating losses. The company faces challenges in achieving sustainable profitability.30
Negative
Balance Sheet
The company has a negative stockholders' equity as of the latest period, indicating financial instability. The debt-to-equity ratio is not applicable due to negative equity, but the total debt has decreased over time. The equity ratio is negative, highlighting the company's reliance on liabilities over equity, which poses a financial risk. Overall, the balance sheet reflects a weak financial position.25
Negative
Cash Flow
Mersana Therapeutics has consistently generated negative operating and free cash flows, which is concerning for future operations. The operating cash flow to net income ratio indicates inefficient cash generation relative to earnings. Despite occasional cash inflows from financing activities, the company's cash flow sustainability remains weak, impacting its ability to fund operations without external financing.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 40.50M | 36.85M | 26.58M | 43.00K | 828.00K | Gross Profit |
| 40.50M | -111.41M | 25.65M | -131.97M | -66.21M | EBIT |
| -73.34M | -170.96M | -204.69M | -169.71M | -87.69M | EBITDA |
| -63.27M | -166.08M | -199.96M | -167.94M | -86.68M | Net Income Common Stockholders |
| -69.19M | -171.67M | -207.54M | -169.21M | -88.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 134.62M | 209.08M | 280.71M | 177.95M | 255.09M | Total Assets |
| 144.66M | 226.06M | 334.34M | 206.11M | 273.40M | Total Debt |
| 17.65M | 33.83M | 36.30M | 38.18M | 16.57M | Net Debt |
| -90.10M | -140.73M | -244.41M | -139.77M | -238.52M | Total Liabilities |
| 154.17M | 189.16M | 242.28M | 84.37M | 45.31M | Stockholders Equity |
| -9.51M | 36.90M | 92.06M | 121.74M | 228.09M |
| 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 Flow |
| 11.44M | 119.88M | -152.72M | -648.00K | 37.03M | Financing Cash Flow |
| 4.09M | 94.67M | 153.02M | 63.65M | 230.41M |
Mersana Therapeutics Technical Analysis
Negative
0.38
Price Trends
0.54
Negative
1.23
Negative
1.55
Negative
Market Momentum
-0.06
Negative
33.08
Neutral
8.85
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 0.38 is below the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.54, and below the 200-day MA of 1.55, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 33.08 is Neutral, neither overbought nor oversold. The STOCH value of 8.85 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 75 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $6.83B | 29.54 | 19.71% | ― | 52.97% | ― | |
58 Neutral | $6.26B | 285.53 | 12.21% | ― | 40.80% | 100.62% | |
52 Neutral | $5.67B | ― | -31.26% | ― | 104.04% | 87.80% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 17.48% | 1.17% | |
46 Neutral | $79.49M | ― | -49.85% | ― | 155.26% | -640.36% | |
40 Underperform | $35.01M | ― | 41.08% | ― | -0.55% | 49.85% | |
36 Underperform | $47.30M | ― | -505.14% | ― | 9.88% | 62.31% |
* Healthcare Sector Average
Performance Comparison
MRSN
Mersana Therapeutics
0.38
-4.04
-91.40%
SRPT
Sarepta Therapeutics
70.41
-57.99
-45.16%
MGNX
MacroGenics
1.26
-12.76
-91.01%
KPTI
Karyopharm Therapeutics
4.16
-19.54
-82.45%
TGTX
TG Therapeutics
39.86
25.09
169.87%
BPMC
Blueprint Medicines
88.72
-7.70
-7.99%
Mersana Therapeutics Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -26.92% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Mersana, highlighted by promising clinical data and a strong safety profile for Emi-Le, as well as increased collaboration revenues and reduced net loss. However, dose management challenges and market competition remain areas of concern.Highlights
Positive Initial Clinical Data for Emi-Le
Mersana reported positive initial clinical data for its lead Dolasynthen ADC, Emi-Le, and started the expansion portion of its Phase I trial. The company was also granted an additional Fast Track designation for a portion of the breast cancer population.
Strong Safety Profile of Emi-Le
Emi-Le demonstrated a differentiated safety profile with common treatment-related adverse events being manageable and without dose-limiting neutropenia, neuropathy, ocular toxicity, interstitial lung disease, or thrombocytopenia.
Confirmed Objective Responses
Confirmed objective responses were observed in all enrolled tumor types, including triple-negative breast cancer, with a 23% objective response rate in high B7-H4 expression patients.
Collaboration Revenue Increase
Collaboration revenue for the fourth quarter of 2024 was $16.4 million, up from $10.7 million in the same period in 2023, due to increased collaboration revenue under agreements with J&J, Merck KGaA, and GSK.
Reduced Net Loss
Mersana's net loss for the fourth quarter of 2024 was $14.1 million, compared to a net loss of $19.5 million for the same period in 2023, reflecting operational efficiencies.
Lowlights
Proteinuria and Dose Management Challenges
Challenges were noted with proteinuria-related dose delays at high doses of Emi-Le. The company is working on protocol amendments and mitigations to manage this issue.
Competitor Landscape and Market Uncertainty
Despite positive developments, the competitive landscape remains challenging, as several topo-1 ADC competitors focus on similar indications, potentially impacting market positioning.
Company Guidance
During Mersana Therapeutics' Fourth Quarter and Year-End 2024 Conference Call, the company provided detailed guidance on its clinical progress and financial standing. Mersana's lead ADC, Emi-Le, showed promising initial clinical data with a confirmed objective response rate (ORR) of 23% in patients with high B7-H4 expression. The expansion portion of their Phase I trial has begun, focusing on triple-negative breast cancer (TNBC) patients who have previously undergone at least one topo-1 ADC treatment. The company is exploring doses up to 95 mg/m² and has amended trial protocols to address proteinuria. Financially, Mersana ended 2024 with $134.6 million in cash and equivalents, expecting their resources to support operations into 2026. The net cash used in operating activities decreased significantly, and collaboration revenue increased to $16.4 million in Q4 2024. The company plans to present additional clinical data later in the year and continues to advance its collaborations with J&J and Merck KGaA.Mersana Therapeutics Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Mersana Therapeutics Announces Positive Phase 1 Clinical Data
Positive
Mar 3, 2025
On March 3, 2025, Mersana Therapeutics announced positive initial Phase 1 clinical data for its lead ADC candidate, Emi-Le, and received a second Fast Track designation from the FDA. The company also initiated an expansion cohort for patients with triple-negative breast cancer and plans to present further clinical data in 2025. Financial results for 2024 showed a net loss reduction compared to 2023, with increased collaboration revenue and decreased R&D and G&A expenses due to restructuring and discontinued projects.
Other
Mersana Therapeutics Updates Investor Presentation Online
Neutral
Feb 5, 2025
On February 5, 2025, Mersana Therapeutics updated its corporate presentation on its website for investors to access. The information shared is not considered filed under the Securities Exchange Act of 1934 and is not subject to associated liabilities, nor is it incorporated by reference in any SEC filings unless specifically stated.
Product-Related AnnouncementsBusiness Operations and StrategyRegulatory Filings and Compliance
Mersana Therapeutics Gains Fast Track for Emi-Le
Positive
Jan 10, 2025
Mersana Therapeutics announced positive initial results from their Phase 1 clinical trial of emiltatug ledadotin (Emi-Le), showing promising efficacy and a favorable safety profile, particularly in heavily pre-treated triple-negative breast cancer (TNBC) patients. The U.S. FDA granted an additional Fast Track designation for Emi-Le, enhancing its potential market impact as Mersana continues dose expansion trials and explores further clinical benefits, which could strengthen their position in the ADC landscape.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.