NasdaqGS:MRSN

Stock Analysis Report

Executive Summary

Mersana Therapeutics, Inc., a clinical stage biopharmaceutical company focusing on the development of antibody drug conjugate (ADC) for cancer patients with unmet need.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

How has Mersana Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRSN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

MRSN

-4.2%

US Biotechs

-7.4%

US Market


1 Year Return

30.1%

MRSN

6.5%

US Biotechs

10.5%

US Market

Return vs Industry: MRSN exceeded the US Biotechs industry which returned 6.5% over the past year.

Return vs Market: MRSN exceeded the US Market which returned 10.5% over the past year.


Shareholder returns

MRSNIndustryMarket
7 Day-1.5%-4.2%-7.4%
30 Day17.8%1.9%-3.6%
90 Day162.6%0.9%-0.6%
1 Year30.1%30.1%7.4%6.5%12.8%10.5%
3 Yearn/a15.8%12.7%37.4%28.6%
5 Yearn/a-1.3%-5.9%61.3%43.6%

Price Volatility Vs. Market

How volatile is Mersana Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mersana Therapeutics undervalued compared to its fair value and its price relative to the market?

4.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MRSN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MRSN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MRSN is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: MRSN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MRSN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MRSN is overvalued based on its PB Ratio (4.6x) compared to the US Biotechs industry average (3x).


Next Steps

Future Growth

How is Mersana Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRSN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MRSN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MRSN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MRSN's revenue is expected to decline over the next 3 years (-1.9% per year).

High Growth Revenue: MRSN's revenue is forecast to decline over the next 3 years (-1.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRSN is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Mersana Therapeutics performed over the past 5 years?

-27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRSN is currently unprofitable.

Growing Profit Margin: MRSN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MRSN is unprofitable, and losses have increased over the past 5 years at a rate of -27.2% per year.

Accelerating Growth: Unable to compare MRSN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MRSN is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (66.2%).


Return on Equity

High ROE: MRSN has a negative Return on Equity (-36.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is Mersana Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: MRSN's short term assets ($114.7M) exceed its short term liabilities ($22.4M).

Long Term Liabilities: MRSN's short term assets ($114.7M) exceed its long term liabilities ($6.2M).


Debt to Equity History and Analysis

Debt Level: MRSN's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MRSN's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: MRSN has a low level of unsold assets or inventory.

Debt Coverage by Assets: MRSN's debt is covered by short term assets (assets are 23.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MRSN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MRSN has sufficient cash runway for 1.5 years if free cash flow continues to reduce at historical rates of -57.2% each year.


Next Steps

Dividend

What is Mersana Therapeutics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MRSN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MRSN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MRSN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MRSN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MRSN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Anna Protopapas (55yo)

4.9yrs

Tenure

US$2,606,900

Compensation

Ms. Anna Protopapas has been the Chief Executive Officer and President of Mersana Therapeutics, Inc. since March 2015. Ms. Protopapas has extensive strategic leadership experience and a demonstrated track  ...


CEO Compensation Analysis

Compensation vs Market: Anna's total compensation ($USD2.61M) is above average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Anna's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Anna Protopapas
President4.9yrsUS$2.61m0.43% $1.8m
Timothy Lowinger
Chief Science & Technology Officer1.1yrsUS$1.05m0.026% $111.5k
Mikhail Papisov
Co-Founder0yrsno datano data
Brian DeSchuytner
Senior Vice President of Finance & Product Strategy0.6yrsno datano data
Ashish Mandelia
VP, Controller & Principal Accounting Officer0.4yrsno datano data
Sarah Carmody
Executive Director of Investor Relations & Corporate Communications1.3yrsno datano data
Radha Iyengar
Vice President of Legal Operations0yrsno datano data
Eva Jack
Chief Business Officer & Company Secretary6.3yrsno datano data
Michael Kaufman
Senior Vice President of Chemistry4yrsno datano data
Dirk Huebner
Chief Medical Officer1.3yrsno datano data

1.3yrs

Average Tenure

55yo

Average Age

Experienced Management: MRSN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Anna Protopapas
President4.9yrsUS$2.61m0.43% $1.8m
David Mott
Independent Chairman7.6yrsUS$160.44kno data
Lawrence Alleva
Independent Director2.4yrsUS$136.43kno data
Willard Dere
Independent Director1.9yrsUS$261.55kno data
Kristen Hege
Independent Director3.5yrsUS$122.43kno data
Andrew A. Hack
Independent Director3.1yrsUS$126.41kno data
Misti Ushio
Board Observer0yrsno datano data

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: MRSN's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 62.5%.


Top Shareholders

Company Information

Mersana Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mersana Therapeutics, Inc.
  • Ticker: MRSN
  • Exchange: NasdaqGS
  • Founded: 2001
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$429.994m
  • Shares outstanding: 47.88m
  • Website: https://www.mersana.com

Number of Employees


Location

  • Mersana Therapeutics, Inc.
  • 840 Memorial Drive
  • Cambridge
  • Massachusetts
  • 2139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRSNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2017
0M4DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2017

Biography

Mersana Therapeutics, Inc., a clinical stage biopharmaceutical company focusing on the development of antibody drug conjugate (ADC) for cancer patients with unmet need. The company develops Dolaflexin, a platform, which is used to generate a pipeline of proprietary ADC product candidates to address patient populations that are not amenable to treat with traditional ADC-based therapies. Its lead product candidate is XMT-1536, a Dolaflexin ADC targeting NaPi2b that is in Phase I clinical trial for the treatment of patients with ovarian cancer, non small cell lung cancer, and other orphan indications. Mersana Therapeutics, Inc. 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 based in Cambridge, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 02:19
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.