Mersana Therapeutics upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst Brian Cheng upgraded Mersana Therapeutics to Overweight from Neutral with a $10 price target. The readout from Mersana’s pivotal UPLIFT study for upifitamab rilsodotin in platinum-resistant ovarian cancer is on track for mid-year, the analyst tells investors in a research note. The analyst believes the UPLIFT design has the right strategy in place that will be able to mitigate pneumonitis risks, "which has been the major bear thesis" in Mersana shares. The firm also believes UPLIFT has "ample room for error" in demonstrating significant difference over the 12% overall response rate bar in standard of care. At the stock’s current valuation, the setup and risk/reward profile is favorable heading into the readout, contends JPMorgan. It also placed Mersana on "Positive Catalyst Watch" into the UPLIFT pivotal study readout mid-year.