Mersana Therapeutics Stock (MRSN): Should I Buy It Now?

By Amit Chowdhry ● June 1, 2020
  • Should you buy Mersana Therapeutics Inc stock (NASDAQ: MRSN) now? Here is some information to help you decide.

Mersana Therapeutics Inc (NASDAQ: MRSN) is a clinical-stage biopharmaceutical company that uses its differentiated and proprietary antibody-drug conjugate (ADC) platforms for rapidly developing novel ADCs with optimal efficacy, safety, and tolerability to meaningfully improve the lives of people fighting cancer. And Mersana’s lead product candidate — which is called XMT-1536 — is in the expansion portion of a Phase 1 proof-of-concept clinical study in patients with ovarian cancer and NSCLC adenocarcinoma.

Mersana’s second ADC product candidate targeting NaPi2b-expressing tumors called XMT-1592 was created using the company’s customizable and homogeneous Dolasynthen platform and is in the dose escalation portion of a Phase 1 proof-of-concept clinical study. And the company’s early-stage programs include a B7-H4 targeting ADC as well as a STING-agonist ADC developed using the company’s Immunosynthen platform. Plus multiple partners are using Mersana’s Dolaflexin platform to advance their ADC pipelines.

Since the beginning of the year, Mersana’s stock jumped nearly 300% as it went from $5.36 per share to $22.64 per share. A large portion of that growth was this past week when the company reported positive interim results of an early-stage study of XMT-1536. After taking XMT-1536, 10% of patients experienced complete remission and others saw a 35% objective response rate. And Mersana Therapeutics President and CEO Anna Protopapas said that the drug was “generally well tolerated.”

Pricing Of Public Offering Of Common Stock

Mersana Therapeutics Inc (NASDAQ: MRSN) recently announced the pricing of an underwritten public offering of 8,000,000 shares of common stock at a price to the public of $19 per share. The gross proceeds to Mersana from the offering are expected to be $152 million, before deducting underwriting discounts and commissions and offering expenses payable by Mersana.

And Mersana has granted the underwriters a 30-day option to purchase up to an additional 1.2 million shares of common stock at the public offering price less underwriting discounts and commissions. And all shares are being sold by Mersana. The offering is expected to close on June 2, 2020, subject to the satisfaction of customary closing conditions.

With the need proceeds, Mersana intends to support clinical development of XMT-1536 and XMT-1592 to progress Mersana’s next ADC product candidates into Phase 1 clinical development, to progress Mersana’s early platform development, and the balance to fund working capital, capital expenditures and other general corporate purposes.

Should You Buy Mersana Therapeutics Inc Stock (NASDAQ: MRSN) Now?

Based on the reports I have been reading, 100% of analysts are saying buy, 0% of analysts are saying hold, and 0% are saying sell. In another report, I am seeing that 3 analysts are saying strong buy, 2 are saying buy, 0 are neutral, 1 says sell, and 0 say strong sell.

Disclosure: I own a small number of Mersana Therapeutics Inc (NASDAQ: MRSN) shares. I wrote this article myself and I do not have any business relationship with any company whose stock I write about. I am not a financial advisor and all articles are my opinion. You should do your own due diligence and consider talking to a financial professional before investing.