Mersana Therapeutics, Inc.

Mersana Therapeutics, Inc.

MRSNยทNASDAQ

$29.08

+0.0000%
HealthcareBiotechnology

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.

At a Glance

Live Snapshot
Market Cap$145.36M
EPS-14.1200
P/E Ratio-2.53
Earnings Date03/02/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -2.5).

Valuation inputs: P/E -2.5, earnings yield N/A, momentum 0.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +7.3%, ROIC -74.9%).

Profitability stack: net margin -1.7%, ROE +7.3%, ROIC -74.9%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +106.6%, momentum 0.0%, net margin -1.7%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Mersana Therapeutics, Inc. Market vs Earnings Trajectory

MRSN ยท NASDAQ

Loading price and EPS data...

Mersana Therapeutics, Inc.

Mersana Therapeutics, Inc. Fair Value Envelope

MRSN ยท NASDAQ

Our analysis suggests that MRSN has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $29.08, this represents a potential HIDDEN relative to our calculated worth for Mersana Therapeutics, Inc..

Intrinsic Value
Current Price: $29.08
3Y-77.0%
5Y-13.0%
10Y-40.0%
3Y+94079.0%
5Y-4.0%
10Y+291.0%
3Y-59.0%
5Y+154.0%
10Y+321.0%
3Y-41.0%
5Y+22.0%
10Y+755.0%
3Y-41.0%
5Y+21.0%
10Y+704.0%
3Y-30.0%
5Y+35.0%
10Y+904.0%
Mersana Therapeutics, Inc.

Mersana Therapeutics, Inc. Profit Bridge

MRSN ยท NASDAQ
Revenue40.50M
Cost of Goods Sold (0.00)
Gross Profit40.50M
Operating Expenses (113.83M)
Operating Income-73.34M
Interest Expense (3.87M)
Other Income/Expense4.56M
Pretax Income-68.77M
Income Tax (418.00K)
Net Income-69.19M
Net Income
-69.19M

Profitability Analysis

Gross Margin

100.0%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

-181.1%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-170.9%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

95.98%
Gross Profit Margin
-132%
3Y-100.0%
5Y-413.0%
10Y-190.0%
-181.09%
Operating Profit Margin
-61%
3Y-100.0%
5Y+161.0%
10Y+15.0%
-170.86%
Net Profit Margin
-63%
3Y-100.0%
5Y+165.0%
10Y+8.0%
727.65%
Return on Equity
-256%
3Y-624.0%
5Y-2195.0%
10Y+1791.0%
-47.83%
Return on Assets
-37%
3Y-42.0%
5Y+89.0%
10Y-58.0%
-74.86%
Return on Invested Capital
-26%
3Y-29.0%
5Y+121.0%
10Y-83.0%
MRSN

Mersana Therapeutics, Inc. Cash Conversion Engine

MRSN ยท NASDAQ
Net Income-69.19M
Depreciation & Amortization1.63M
Stock-Based Compensation16.46M
Change in Working Capital-30.74M
Others-496.00K
Capital Expenditures-132.00K
Free Cash Flow-82.47M

Cash Flow Quality Analysis

FCF Conversion Rate

119.2%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

-0.2%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+51.8%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$30.74M

Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Mersana Therapeutics, Inc. Funding & Solvency Profile

MRSN ยท NASDAQ
Cash & Cash Equivalents56.39M
Net Receivables168.00K
Inventory0.00
Other Current Assets3.43M
Total Current Assets60 M
Property, Plant & Equipment2.20M
Goodwill & Intangible Assets0.00
Long-Term Investments0.00
Other Non-Current Assets500.00K
Total Non-Current Assets3 M
Total Assets
62.69M

Financial Health Analysis

Current Ratio

1.39x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Working Capital

17 M

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

96% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

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Mersana Therapeutics, Inc. Street Expectations Map

MRSN ยท NASDAQ

Wall Street analysts project that MRSN stock may decline over the coming 12 months. The consensus 1-year price target stands at 17.00, with estimates ranging from a low of 17.00 to a high of 17.00.

Lowest Target
17.00
-41.54%
Consensus Target
17.00
-41.54%
Highest Target
17.00
-41.54%

The consensus 1-year price target stands at 17.00, with estimates ranging from a low of 17.00 to a high of 17.00.

Analyst Consensus Analysis

Upside Potential

-41.5%

Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Risk-Reward Profile

1.00x

Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.

Analyst Conviction

Low

Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.

Market Sentiment Insight

Consensus overvaluation: Analysts agree the stock is richly valued with limited upside. Consider booking profits or defensive positioning unless you have contrarian conviction in unrecognized catalysts.

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Mersana Therapeutics, Inc. Insider Positioning

MRSN ยท NASDAQ

During the last 12 months, insiders have sold $15K worth of MRSN shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

2.1K

15.47K

Net Activity

-15K

-$15K

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
HMHJ

Huber Martin H. Jr.

Director, Officer: President, Ceo

2.0K sharesโ€ข1 transactions

$15K

2
BM

Bala Mohan

Officer: Svp, Chief Development Officer

77 sharesโ€ข1 transactions

$762

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $15K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

2 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.00%
Dividend Yield
3Y-
5Y-
10Y-
ย 

mrsn Dividend History

MRSN
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%