Shares of biopharmaceutical company Mersana Therapeutics (NASDAQ:MRSN) are tanking in the morning session today after the clinical trial (UPLIFT) of upifitamab rilsodotin in platinum-resistant ovarian cancer failed to meet its primary endpoint.
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The trial failed to replicate results from a previous dose expansion portion of the drug’s Phase 1b trial with the duration of response being longer than that of the dose expansion portion.
After this clinical disappointment, Mersana is now shifting its primary focus to its other product candidates. The company plans to complete the dose escalation part of its Phase 1 study of XMT-1660 this year and begin its dose expansion portion next year. Additionally, it is also working towards addressing the clinical hold on the Phase 1 study of XMT-2056.
Further, in a bid to extend its cash runway, the company is slashing nearly 50% of its headcount and winding down its UP-NEXT and UPGRADE-A clinical trials. Mersana had a cash pile of $286.6 million at the end of June.
Overall, the Street has a $9.50 consensus price target on Mersana alongside a Strong Buy consensus rating. Shares of the company have now tanked nearly 74% over the past month.
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