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Mersana Therapeutics (MRSN)

Mersana Therapeutics is a clinical-stage biopharmaceutical company using its differentiated and proprietary ADC platforms to rapidly develop novel ADCs with optimal efficacy, safety and tolerability to meaningfully improve the lives of people fighting cancer. Mersana's lead product candidate, upifitamab rilsodotin (UpRi), is a Dolaflexin ADC targeting NaPi2b and is in the expansion portion of a Phase 1 proof-of-concept clinical study in patients with ovarian cancer and NSCLC adenocarcinoma. XMT-1592, Mersana's second ADC product candidate targeting NaPi2b-expressing tumors, was created using Mersana's customizable and homogeneous Dolasynthen platform and is in the dose escalation portion of a Phase 1 proof-of-concept clinical study. The Company's early-stage programs include XMT-1660, a Dolasynthen ADC targeting B7-H4, as well as XMT-2056, a STING-agonist ADC developed using the Company's Immunosynthen platform. In addition, multiple partners are using Mersana's Dolaflexin platform to advance their ADC pipelines.

Company profile

Ticker
MRSN
Exchange
Website
CEO
Anna Protopapas
Employees
Incorporated
Location
Fiscal year end
Former names
MERSANA THERAPEUTICS INC
SEC CIK
Subsidiaries
Mersana Securities Corp. ...

MRSN stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$17.00
Low target
$14.00
High target
$20.00
Baird
Maintains
Outperform
$20.00
9 Aug 22
SVB Leerink
Maintains
Outperform
$14.00
9 Aug 22

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

8 Aug 22
25 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 135.82M 135.82M 135.82M 135.82M 135.82M 135.82M
Cash burn (monthly) 31.57M 7.67M 18.68M 16.51M 14.93M 10.94M
Cash used (since last report) 90.21M 21.92M 53.37M 47.16M 42.65M 31.25M
Cash remaining 45.6M 113.9M 82.45M 88.66M 93.17M 104.57M
Runway (months of cash) 1.4 14.8 4.4 5.4 6.2 9.6

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
17 Aug 22 Tushar Misra Common Stock Sell Dispose S No No 7.1 1,879 13.34K 4,371
16 Aug 22 Tushar Misra Common Stock Option exercise Acquire M No No 0 6,250 0 6,250
16 Aug 22 Tushar Misra RSU Common Stock Option exercise Dispose M No No 0 6,250 0 18,750
9 Jun 22 Kristen Hege Stock Option Common Stock Grant Acquire A No No 3.62 45,000 162.9K 45,000
9 Jun 22 Huber Martin H. Jr. Stock Option Common Stock Grant Acquire A No No 3.62 45,000 162.9K 45,000
9 Jun 22 Mott David M Stock Option Common Stock Grant Acquire A No No 3.62 45,000 162.9K 45,000
9 Jun 22 Allene M. Diaz Stock Option Common Stock Grant Acquire A No No 3.62 45,000 162.9K 45,000
13F holders Current Prev Q Change
Total holders 127 132 -3.8%
Opened positions 17 21 -19.0%
Closed positions 22 16 +37.5%
Increased positions 52 51 +2.0%
Reduced positions 36 38 -5.3%
13F shares Current Prev Q Change
Total value 546.85M 464.5M +17.7%
Total shares 100.42M 92.48M +8.6%
Total puts 13.1K 47.9K -72.7%
Total calls 100 10.7K -99.1%
Total put/call ratio 131.0 4.5 +2826.3%
Largest owners Shares Value Change
Orbimed Advisors 9.01M $41.63M +88.2%
BLK Blackrock 8.88M $41.03M +16.5%
Bain Capital Life Sciences Investors 8.66M $40.03M +32.8%
Avoro Capital Advisors 7.55M $34.88M +11.0%
Vanguard 4.73M $21.87M +37.8%
Millennium Management 4.38M $20.25M -10.3%
Sarissa Capital Management 4.3M $19.86M 0.0%
BBBOF BB Biotech 4.14M $35.4M 0.0%
Rock Springs Capital Management 4.08M $18.83M +8.5%
Bain Capital Life Sciences Fund II 4.04M $12.85M +22.7%
Largest transactions Shares Bought/sold Change
Orbimed Advisors 9.01M +4.22M +88.2%
Woodline Partners 3.16M +3.16M NEW
Bain Capital Life Sciences Investors 8.66M +2.14M +32.8%
Vanguard 4.73M +1.3M +37.8%
BLK Blackrock 8.88M +1.25M +16.5%
BMO Bank of Montreal 16.74K -1.14M -98.6%
CIBC Asset Management 0 -1.06M EXIT
Silverarc Capital Management 850K +850K NEW
Two Sigma Investments 451.17K -824.46K -64.6%
Rho Capital Partners 0 -796.46K EXIT

Financial report summary

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Risks
  • Failure of a discovery program or product candidate may occur at any stage of preclinical or clinical development, and, because our and our partners' discovery programs and our product candidates are in early stages of preclinical or clinical development, there is a high risk of failure. We or our partners may never succeed in obtaining regulatory approval and generating revenue from such discovery programs or product candidates.
  • Preliminary, interim and top-line data from our clinical trials that we announce or publish from time to time may change as more patient data become available and are subject to audit and verification procedures that could result in material changes in the final data.
  • We currently have a limited number of ADC product candidates in current or planned clinical trials. A failure of any of our product candidates in clinical development would adversely affect our business and may require us to discontinue development of other ADC product candidates based on the same technology.
  • Events that may delay or prevent successful commencement, enrollment or completion of clinical trials of our product candidates could result in increased costs to us as well as a delay in obtaining, or failure to obtain, regulatory approval, or cause us to suspend or terminate a clinical trial, which could prevent us from commercializing our product candidates on a timely basis, or at all.
  • An inability to enroll sufficient numbers of patients in our clinical trials could result in increased costs and longer development periods for our product candidates.
  • Our product candidates or ADCs developed or commercialized by our competitors may cause undesirable side effects or have other properties that halt their clinical development, delay or prevent regulatory approval of our product candidates or limit their commercial potential.
  • We may choose not to develop a potential product candidate, or we may suspend or terminate one or more discovery or preclinical programs or product candidates.
  • We or our partners may fail to discover and develop additional potential product candidates.
  • We have incurred net losses since our inception, we have no products approved for commercial sale and we anticipate that we will continue to incur substantial operating losses for the foreseeable future. We may never achieve or sustain profitability.
  • We have a credit facility that requires us to comply with certain affirmative and negative covenants and places restrictions on our operating and financial flexibility.
  • We will require substantial additional financing to achieve our goals, and a failure to obtain this necessary capital when needed could force us to delay, limit, reduce or terminate our product development or commercialization efforts.
  • Raising additional capital may cause dilution to our existing stockholders, restrict our operations or require us to relinquish rights to our technologies or ADC product candidates.
  • We may expend our resources to pursue a particular product candidate and fail to capitalize on product candidates that may be more profitable or for which there is a greater likelihood of success.
  • Because we rely on third-party manufacturing and supply partners, our supply of research and development, preclinical and clinical development materials may become limited or interrupted or may not be of satisfactory quantity or quality.
  • We, or our third-party manufacturers, may be unable to successfully scale-up manufacturing of our ADC product candidates in sufficient quality and quantity, which would delay or prevent us from developing our ADC product candidates and commercializing approved products, if any.
  • We rely on third parties to conduct preclinical studies and clinical trials for UpRi, XMT-1660, XMT-2056 and our other product candidates, and if such third parties do not properly, timely and successfully perform their obligations to us, we may not be able to obtain regulatory approvals for UpRi, XMT-1660, XMT-2056 or any other current or future ADC product candidates.
  • We depend on strategic partnerships with other companies to assist in the research, development and commercialization of our ADC platforms and ADC product candidates. If our existing partners do not perform as expected, this may negatively affect our ability to commercialize our ADC product candidates or generate revenues through technology licensing or may otherwise negatively affect our business.
  • To date, we have depended on a small number of partners for a substantial portion of our revenue. The loss of any one of these partners could result in non-achievement of our expected revenue payments.
  • We may seek to establish additional strategic partnerships, and if we are not able to establish them on commercially reasonable terms, or maintain them, we may have to alter our development and commercialization plans.
  • Our future commercial success depends upon attaining significant market acceptance of our ADC product candidates, if approved, among physicians, patients and health care payors.
  • The incidence and prevalence for target patient populations of our drug candidates have not been established with precision. If the market opportunities for our drug candidates, including particularly UpRi, are smaller than we estimate or if any approval that we obtain is based on a narrower definition of the patient population, our revenue and ability to achieve profitability will be adversely affected, possibly materially.
  • If we are unable to establish sales, marketing and distribution capabilities, we may not be successful in commercializing our product candidates if and when they are approved.
  • Reimbursement may be limited or unavailable in certain market segments for our ADC product candidates, which could make it difficult for us to sell our products profitably.
  • Price controls may be imposed in foreign markets, which may adversely affect our future profitability.
  • We face substantial competition, and if our competitors develop and market products that are more effective, safer or less expensive than any of our current or future product candidates, our commercial opportunities will be negatively impacted.
  • If we are unable to obtain or protect intellectual property rights related to our technology and ADC product candidates, or if our intellectual property rights are inadequate, we may not be able to compete effectively.
  • Issued patents covering UpRi, XMT-1592, XMT-1660, XMT-2056 and any other current or future ADC product candidates could be found invalid or unenforceable if challenged in court or before the USPTO or comparable foreign authority.
  • If we fail to comply with our obligations under any license, strategic partnership or other agreements, we may be required to pay damages and could lose intellectual property rights that are necessary for developing and protecting our ADC product candidates.
  • We may become involved in lawsuits to protect or enforce our intellectual property or to defend against intellectual property claims, which could be expensive, time consuming and unsuccessful.
  • Third-party claims of intellectual property infringement or misappropriation may prevent or delay our development and commercialization efforts.
  • We may not be able to protect our intellectual property and proprietary rights throughout the world.
  • Confidentiality agreements with employees and third parties may not prevent unauthorized disclosure of trade secrets and other proprietary information.
  • We may be subject to claims by third parties asserting that our licensors, employees, consultants, advisors or we have misappropriated their intellectual property, or claiming ownership of what we regard as our own intellectual property.
  • If we do not obtain patent term extension and data exclusivity for any product candidates we may develop, our business may be materially harmed.
  • Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment, and other requirements imposed by government patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.
  • Intellectual property rights do not necessarily address all potential threats.
  • Even if we complete the necessary preclinical studies and clinical trials, the regulatory approval process is expensive, time consuming and uncertain and may prevent us from obtaining approvals for the commercialization of some or all of our product candidates. As a result, we cannot predict when or if, and in which territories, we will obtain marketing approval to commercialize a product candidate.
  • Failure to obtain marketing approval in foreign jurisdictions would prevent our product candidates from being marketed abroad. Any approval we may be granted for our product candidates in the United States would not assure approval of our product candidates in foreign jurisdictions and any of our product candidates that may be approved for marketing in a foreign jurisdiction will be subject to risks associated with foreign operations.
  • Any product candidate for which we obtain marketing approval is subject to ongoing regulation and could be subject to restrictions or withdrawal from the market, and we may be subject to substantial penalties if we fail to comply with regulatory requirements, when and if any of our product candidates are approved.
  • We may seek certain designations for our product candidates, including but not limited to Breakthrough Therapy, Fast Track and Priority Review designations in the United States, and PRIME Designation in the European Union, but we might not receive such designations, and even if we do, such designations may not lead to a faster development or regulatory review or approval process.
  • We have received orphan drug designations for XMT-2056 but we may not be able to obtain orphan drug exclusivity for one or more of our product candidates, and even if we do, that exclusivity may not prevent the FDA or EMA from approving other competing products.
  • Inadequate funding for the FDA, the SEC and other government agencies, including from government shut downs, or other disruptions to these agencies’ operations, could hinder their ability to hire and retain key leadership and other personnel, prevent new products and services from being developed or commercialized in a timely manner or otherwise prevent those agencies from performing normal business functions on which the operation of our business may rely, which could negatively impact our business.
  • We are currently conducting clinical trials for UpRi, and may conduct future clinical trials for our other product candidates, at sites outside of the United States. The FDA may not accept data from trials conducted in such locations, or the complexity of regulatory burdens may otherwise adversely impact us.
  • Accelerated approval by the FDA, even if granted for UpRi or any other current or future product candidates, may not lead to a faster development or regulatory review or approval process and it does not increase the likelihood that our product candidates will receive marketing approval.
  • If we or our third-party collaborators are unable to successfully develop and commercialize any required companion diagnostics for our product candidates or engage a third party to do so, or we or they experience significant delays in doing so, we may not realize the full potential of our product candidates.
  • Our activities, including our interactions with healthcare providers, third party payors, patients and government officials, are, and will continue to be, subject to extensive regulation involving health care, anti-corruption, data privacy and security and consumer protection laws. Failure to comply with applicable laws could result in substantial penalties, contractual damages, reputational harm, diminished revenues and curtailment or restructuring of our operations.
  • Current and future legislation may increase the difficulty and cost for us to obtain reimbursement for our product candidates.
  • The prices of prescription pharmaceuticals in the United States and foreign jurisdictions are subject to considerable legislative and executive actions and could impact the prices we obtain for our products, if and when licensed.
  • We are subject to stringent privacy laws, information security laws, regulations, policies and contractual obligations related to data privacy and security, and a failure to comply with such requirements could subject us to significant fines and penalties, which may have a material adverse effect on our business, financial condition or results of operations.
  • Laws and regulations governing any international operations we may have in the future may preclude us from developing, manufacturing and selling certain products outside of the United States and require us to develop and implement costly compliance programs.
  • We and our third-party contract manufacturers must comply with environmental, health and safety laws and regulations, and failure to comply with these laws and regulations could expose us to significant costs or liabilities.
  • Our employees may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements and insider trading.
  • If we fail to attract and retain senior management and key scientific personnel, we may be unable to successfully develop our ADC product candidates, conduct our clinical trials and commercialize our ADC product candidates.
  • We may encounter difficulties in managing our growth and expanding our operations successfully.
  • If product liability lawsuits are brought against us, we may incur substantial liabilities and may be required to limit commercialization of our ADC product candidates.
  • We may acquire assets or form strategic alliances in the future, and we may not realize the benefits of such acquisitions.
  • If our stock price is volatile, our stockholders could incur substantial losses.
  • We do not expect to pay any cash dividends for the foreseeable future.
  • Provisions in our amended and restated certificate of incorporation, as amended, our amended and restated by-laws and Delaware law may have anti-takeover effects that could discourage an acquisition of us by others, even if an acquisition would be beneficial to our stockholders, and may prevent attempts by our stockholders to replace or remove our current management.
  • Our ability to use net operating losses and certain tax credit carryforwards may be subject to certain limitations.
  • Our amended and restated certificate of incorporation, as amended, designates the state or federal courts within the State of Delaware as the exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
  • If securities analysts do not publish research or reports about our business or if they publish negative evaluations of our stock, the price of our stock and trading volume could decline.
  • A portion of our total outstanding shares may be sold into the market in the near future, which could cause the market price of our common stock to decline significantly, even if our business is doing well.
  • Our business is subject to risks arising from the outbreaks of disease, such as epidemics or pandemics, including the ongoing COVID-19 pandemic.
  • We, or the third parties upon whom we depend, may be adversely affected by serious disasters.
  • Unfavorable global economic or geopolitical conditions could adversely affect our business, financial condition or results of operations.
Management Discussion
  • Collaboration revenue increased by $4.3 million during the three months ended June 30, 2022 compared to the three months ended June 30, 2021 primarily due to the Janssen Agreement.
  • Research and development expense increased by $9.3 million from $32.0 million for the three months ended June 30, 2021 to $41.2 million for the three months ended June 30, 2022.
  • •an increase of $3.3 million related to clinical development and manufacturing activities for XMT-1660 and the Dolasynthen platform;

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
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Removed: auditing, beginning, letter, study