Mersana Therapeutics price target lowered to $7 from $20 at Baird

Baird analyst Collen Kusy lowered the firm’s price target on Mersana Therapeutics to $7 from $20 and keeps an Outperform rating on the shares. The firm noted based on pooled safety data that showed five bleeding-related deaths, the FDA put a hold on further enrollment in UpRi trials, though the driver and type of fatal bleeding events is unknown. While we still see potential for a positive readout (early August), we believe the rate of Grade 5 bleeding events raises the bar, increases the risk, and may impact potential market opportunity.