Mersana Therapeutics (MRSN) AI Stock Analysis

• Market Cap: $35.68M
• Dividend Yield: N/A
• Average Volume (3M): 80.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.89
• Revenue Growth: 16.14%
• EPS Growth: 31.01%
• Country: US
• Employees: 102
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -4.87
• Shares Outstanding: 4,990,692
• 10 Day Avg. Volume: 46,592
• 30 Day Avg. Volume: 80,608
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.56
• Enterprise Value/Revenue: -0.57
• Enterprise Value/Gross Profit: -0.58
• Enterprise Value/Ebitda: 0.29
• 1Y Price Target: $35.40
• Price Target Upside: 381.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 43 Neutral
• Price Target: $7.00 ▼(-4.76% Downside)

Mersana Therapeutics' overall stock score is primarily impacted by its weak financial performance, characterized by ongoing losses and high leverage. While there is progress in clinical trials, the technical indicators and valuation metrics remain unfavorable, contributing to a low overall score.

Positive Factors

Clinical Trial Progress

The successful enrollment and promising response rates in clinical trials for Emi-Le indicate potential future revenue streams and strengthen Mersana's position in the oncology market.

Strategic Partnerships

The milestone achievement with GSK reflects strong strategic partnerships that can provide financial support and enhance Mersana's drug development capabilities.

Financial Stability

A robust cash position ensures operational stability and supports ongoing R&D activities, allowing Mersana to continue its development programs without immediate financial distress.

Negative Factors

High Leverage

High leverage poses a risk to financial flexibility, potentially limiting Mersana's ability to invest in growth opportunities and manage economic downturns effectively.

Negative Cash Flows

Persistent negative cash flows indicate operational inefficiencies and could hinder Mersana's ability to sustain its business model without external funding.

Limited Revenue Growth

The slow growth in collaboration revenue suggests challenges in expanding partnerships and monetizing Mersana's technology, which may impact long-term revenue potential.

Mersana Therapeutics Business Overview & Revenue Model

Company Description

Mersana Therapeutics, Inc., a clinical stage biopharmaceutical company, develops antibody drug conjugates (ADC) for cancer patients with unmet need. It develops XMT-1592, a Dolasynthen ADC targeting NaPi2b-expressing tumor cells, which is in phase I clinical trial for the treatment of ovarian cancer and NSCLC adenocarcinoma. The company also develops XMT-1660, a B7-H4-targeted Dolasynthen ADC candidate; and XMT-2056, an immunosynthen development candidate. It has a strategic research and development partnerships with Merck KGaA and Asana BioSciences, LLC for the development of ADC product candidates utilizing Fleximer. The company was formerly known as Nanopharma Corp. and changed its name to Mersana Therapeutics, Inc. in November 2005. Mersana Therapeutics, Inc. was incorporated in 2001 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Mersana Therapeutics generates revenue primarily through strategic partnerships and collaborations with larger pharmaceutical companies, who provide funding for research and development in exchange for rights to co-develop or commercialize specific drug candidates. The company also aims to monetize its proprietary technologies by licensing them to other firms. Additionally, Mersana may receive milestone payments and royalties based on the commercial success of partnered products. As the company advances its clinical trials and potentially achieves regulatory approvals for its drug candidates, it could also generate revenue through direct sales of its therapies.

Mersana Therapeutics Financial Statement Overview

Summary

Mersana Therapeutics is under significant financial stress, with negative equity, declining revenues, and substantial net losses. The negative cash flow and reliance on external financing further highlight the financial challenges.

Income Statement

Mersana Therapeutics shows a volatile revenue trajectory with significant net losses. The TTM data indicates a gross profit margin of 100% due to revenue equaling gross profit, but the net profit margin remains negative at -217.58%, reflecting substantial expenses. Revenue declined by 16% from the previous year, and the EBIT and EBITDA margins are also negative, indicating ongoing operational challenges.

Balance Sheet

The company's balance sheet reveals financial strain, with negative stockholders' equity indicating liabilities exceeding assets. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative, reflecting financial instability. These factors suggest high leverage and potential liquidity issues.

Cash Flow

Cash flow analysis shows a challenging environment, with negative free cash flow and operating cash flow. The free cash flow to net income ratio is not favorable, as both metrics are negative, indicating cash burn. However, investing cash flows positively due to asset sales, offering some liquidity relief.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.77M	40.50M	36.85M	26.58M	43.00K	828.00K
Gross Profit	34.48M	38.87M	-111.41M	25.65M	-131.97M	-66.21M
EBITDA	-68.88M	-63.27M	-166.08M	-199.96M	-167.94M	-86.68M
Net Income	-74.04M	-69.19M	-171.67M	-207.54M	-169.21M	-88.40M
Balance Sheet
Total Assets	84.57M	144.66M	226.06M	334.34M	206.11M	273.40M
Cash, Cash Equivalents and Short-Term Investments	76.97M	134.62M	209.08M	280.71M	177.95M	255.09M
Total Debt	20.62M	28.60M	33.83M	36.30M	38.18M	16.57M
Total Liabilities	137.72M	154.17M	189.16M	242.28M	84.37M	45.31M
Stockholders Equity	-53.15M	-9.51M	36.90M	92.06M	121.74M	228.09M
Cash Flow
Free Cash Flow	-79.76M	-82.47M	-171.05M	-51.56M	-140.64M	-75.17M
Operating Cash Flow	-79.76M	-82.34M	-168.88M	-49.36M	-139.99M	-74.70M
Investing Cash Flow	105.86M	11.44M	119.88M	-152.72M	-648.00K	37.03M
Financing Cash Flow	-8.13M	4.09M	94.67M	153.02M	63.65M	230.41M

Mersana Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 7.35 is below the 20-day moving average (MA) of 7.36, below the 50-day MA of 7.51, and below the 200-day MA of 14.99, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 56.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRSN.

Mersana Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPTX	60 Neutral	74.75M	-0.68	-56.04%	―	-99.64%	-59.17%
STTK	55 Neutral	92.93M	-1.85	-94.71%	―	-27.33%	34.66%
XLO	54 Neutral	39.06M	-1.00	0.00%	―	536.44%	63.68%
GBIO	48 Neutral	38.86M	-0.55	-133.86%	―	61.15%	54.71%
CELU	46 Neutral	57.39M	-0.69	-655.11%	―	4.45%	45.19%
MRSN	43 Neutral	$35.68M	―	-505.14%	―	16.14%	31.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Mersana Therapeutics Corporate Events

Mersana Therapeutics Faces Nasdaq Non-Compliance Notice

On September 5, 2025, Mersana Therapeutics received a notice from Nasdaq indicating non-compliance with the Nasdaq Listing Rule 5450(b)(2)(A), which requires a minimum Market Value of Listed Securities of $50 million. Although this notice does not immediately affect the company’s stock listing, Mersana has until March 4, 2026, to regain compliance by achieving the required market value for at least ten consecutive business days. Failure to comply could lead to delisting, although the company can appeal the decision. Mersana plans to monitor its market value and explore options to meet the compliance requirements.

The most recent analyst rating on (MRSN) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Mersana Therapeutics stock, see the MRSN Stock Forecast page.