Core Viewpoint - Mersana Therapeutics, Inc. (MRSN) has seen an 8.3% increase in share price over the past four weeks, closing at $6.82, with a potential upside of 314.8% based on Wall Street analysts' mean price target of $28.29 [1][2] Price Targets - The mean estimate consists of seven short-term price targets with a standard deviation of $16.09, indicating variability among analysts [2] - The lowest estimate is $8.00, suggesting a 17.3% increase, while the highest estimate is $50.00, indicating a potential surge of 633.1% [2] Analyst Sentiment - Analysts show a consensus that MRSN will report better earnings than previously estimated, which historically correlates with stock price increases [4][9] - The Zacks Consensus Estimate for the current year has risen by 92.6% over the past month, with two estimates increasing and one decreasing [10] Zacks Rank - MRSN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for upside [11] Caution on Price Targets - While price targets are a common tool for investors, they can often mislead, and reliance solely on them may not yield favorable returns [5][8] - Analysts may set optimistic price targets due to business incentives, which can inflate expectations [6]

Group 1 - Mersana Therapeutics, Inc. (MRSN) closed at $8.11, with a potential upside of 248.8% based on a mean price target of $28.29 set by Wall Street analysts [1] - The mean estimate includes seven short-term price targets with a standard deviation of $16.09, indicating variability among analysts; the lowest estimate is $8.00 (1.4% decline), while the highest is $50.00 (516.5% increase) [2] - Analysts show strong agreement on MRSN's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] Group 2 - Over the last 30 days, three earnings estimates for MRSN have been revised higher, leading to a 92.8% increase in the Zacks Consensus Estimate [12] - MRSN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] - While consensus price targets may not be reliable for predicting exact gains, they can provide a directional guide for price movement [14]

Company Performance - Mersana Therapeutics reported a quarterly loss of $4.08 per share, which was worse than the Zacks Consensus Estimate of a loss of $3.75, representing an earnings surprise of -8.80% [1] - The company posted revenues of $3.06 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 58.9%, but showing an increase from $2.29 million in the same quarter last year [2] - Over the last four quarters, Mersana has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Mersana Therapeutics shares have lost about 83% since the beginning of the year, contrasting with the S&P 500's gain of 9.6% [3] - The current consensus EPS estimate for the upcoming quarter is -$3.38 on revenues of $7.59 million, and for the current fiscal year, it is -$14.31 on revenues of $22.24 million [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which Mersana belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [5][8]

Financial Data and Key Metrics Changes - The company ended the second quarter of 2025 with $77 million in cash and cash equivalents, with a net cash used in operating activities of $22.6 million, which included $2.4 million in severance payments [14] - Collaboration revenue for 2025 was $3.1 million, an increase from $2.3 million in the same period in 2024, primarily due to increased revenue from collaborations with J&J and Merck KGAA [15] - Research and development expenses for 2025 were $16.2 million, down from $17.2 million in 2024, attributed to lower headcount and related compensation costs [16] - General and administrative expenses decreased to $7.4 million from $10.5 million in 2024, mainly due to lower headcount and reduced consulting fees [17] - The net loss for the second quarter of both 2025 and 2024 was $24.3 million [18] Business Line Data and Key Metrics Changes - The company reported strong enrollment progress in the EMILY phase one trial, particularly in expansion cohorts targeting triple negative breast cancer (TNBC) [4][10] - Among evaluable patients with high B7-H4 tumor expression, the confirmed objective response rate (ORR) was 31% [5] - In patients with adenoid cystic carcinoma type one (ACC1), the ORR was 56% [6] Market Data and Key Metrics Changes - The market for topo one ADCs in TNBC is expected to grow significantly, with Trodelvy projected to generate about $1 billion in global revenues in 2025 [11] - The company believes the post-topo one TNBC opportunity is sizable and could expand as more agents move into earlier lines of therapy [11] Company Strategy and Development Direction - The company is focusing on addressing unmet needs in TNBC, particularly for patients previously treated with topo one ADCs [6][12] - The company is exploring the potential of EMILY as a second-line therapy for patients who have received prior topo one ADCs [12] - The company is also developing XMT-2056, an Immunosynthen ADC targeting HER2, with GSK holding an exclusive global license option [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing clinical trials and the potential for EMILY to meet significant unmet needs in the TNBC market [10][12] - The management highlighted the importance of the evolving treatment landscape and the potential for EMILY to address the needs of topo-experienced patients if approved [11] Other Important Information - The company incurred $3.9 million in restructuring charges primarily related to severance and benefit payments [17] - The company expects its capital resources to support its operating plan commitments into mid-2026 [14] Q&A Session Summary Question: Expectations for upcoming data in the second half - Management indicated that the data will be based on over 45 enrolled patients, with both dose A and B included, but cautioned about committing to an exact number due to treatment and scan requirements [21][22] Question: Good benchmark for efficacy - Management stated that a response rate in the 20s and a median PFS of 16 weeks would be a good benchmark, considering the standard of care has a 5% response rate and 6-7 weeks PFS [23] Question: Implementation of proteinuria mitigation strategies - Management confirmed that Amendment five was implemented to minimize proteinuria development, allowing patients to continue treatment despite isolated albuminuria [28] Question: Enrollment progress and potential next steps - Management reported that enrollment is going well, with no need for additional sites for the expansion, and they are focused on TNBC for the pivotal study [50][67] Question: Milestone payment details - The $15 million milestone payment is development-based, but further details remain confidential [58]

[PART I – FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section covers financial statements, management's analysis, market risk, and internal controls [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Financial statements for Q2 2025 reflect a deteriorating position, increased net loss, and going concern doubts Condensed Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $76,972 | $107,750 | | Total current assets | $80,141 | $136,904 | | Total assets | $84,573 | $144,663 | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $59,338 | $62,458 | | Total liabilities | $137,719 | $154,172 | | Total stockholders' deficit | ($53,146) | ($9,509) | Condensed Consolidated Statements of Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Collaboration revenue | $3,056 | $2,293 | $5,810 | $11,538 | | Research and development | $16,218 | $17,245 | $34,559 | $35,931 | | General and administrative | $7,415 | $10,503 | $16,340 | $22,063 | | Restructuring expenses | $3,940 | $— | $3,940 | $— | | Net loss | ($24,296) | ($24,268) | ($48,419) | ($43,574) | | Net loss per share | ($4.87) | ($4.96) | ($9.72) | ($8.93) | - The company has incurred cumulative net losses and negative cash flows since inception, with a net loss of **$48.4 million** for the six months ended June 30, 2025, and an accumulated deficit of **$944.0 million**, raising substantial doubt about its ability to continue as a going concern[32](index=32&type=chunk) - On July 25, 2025, the company effected a **1-for-25 reverse stock split**, with all share and per share amounts retroactively adjusted to reflect this split[39](index=39&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail ADC platforms, clinical candidates, May 2025 restructuring, collaboration revenue, and debt repayment - In May 2025, the company implemented a strategic restructuring plan, reducing its employee base by approximately **55%** and narrowing its focus to Emi-Le development for breast cancer and the XMT-2056 trial[30](index=30&type=chunk) - Collaboration revenue for the six months ended June 30, 2025, was primarily driven by performance under agreements with **Johnson & Johnson ($4.0 million)**, **GSK ($1.0 million)**, and **Merck KGaA ($0.5 million)**[61](index=61&type=chunk)[73](index=73&type=chunk)[83](index=83&type=chunk) - On July 1, 2025, the company fully repaid all amounts owed under its New Credit Facility, paying approximately **$17.9 million**, which included **$16.7 million** of principal[101](index=101&type=chunk) Restructuring Charges (in thousands) | Item | Three and six months ended June 30, 2025 | | :--- | :--- | | **Total Costs Incurred** | **$3,940** | | Research and development related | $2,919 | | General and administrative related | $1,021 | | **Accrued Restructuring Costs** | | | Balance at Dec 31, 2024 | $— | | Additional expense | $3,940 | | Cash payments | ($2,373) | | Balance at June 30, 2025 | $1,567 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses clinical candidates, restructuring, financial performance, and liquidity, noting going concern doubts - The company is focusing on its two clinical-stage candidates: Emi-Le (B7-H4-targeting Dolasynthen ADC) and XMT-2056 (HER2-targeting Immunosynthen ADC)[152](index=152&type=chunk) - Positive interim data for Emi-Le presented at ASCO 2025 showed a **31% confirmed ORR** in patients with B7-H4 high tumor expression and a **56% ORR** in patients with ACC-1[154](index=154&type=chunk)[155](index=155&type=chunk) - A strategic restructuring was implemented in May 2025, reducing the workforce by approximately **55%** and narrowing focus to breast cancer for Emi-Le, with estimated aggregate costs of **$4.0 - $4.5 million**[159](index=159&type=chunk)[160](index=160&type=chunk) - As of June 30, 2025, the company had **$77.0 million** in cash and cash equivalents, which is projected to fund operations into mid-2026, but there is substantial doubt about the company's ability to continue as a going concern[165](index=165&type=chunk)[207](index=207&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Collaboration revenue varied by period, while operating expenses declined due to restructuring efforts Comparison of Three Months Ended June 30, 2025 and 2024 (in thousands) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Collaboration Revenue | $3,056 | $2,293 | $763 | | R&D Expense | $16,218 | $17,245 | ($1,027) | | G&A Expense | $7,415 | $10,503 | ($3,088) | | Restructuring Expense | $3,940 | $— | $3,940 | | Net Loss | ($24,296) | ($24,268) | ($28) | Comparison of Six Months Ended June 30, 2025 and 2024 (in thousands) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Collaboration Revenue | $5,810 | $11,538 | ($5,728) | | R&D Expense | $34,559 | $35,931 | ($1,372) | | G&A Expense | $16,340 | $22,063 | ($5,723) | | Restructuring Expense | $3,940 | $— | $3,940 | | Net Loss | ($48,419) | ($43,574) | ($4,845) | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity relies on collaborations and equity, with $77.0 million cash, but additional capital is needed for going concern - As of June 30, 2025, the company had **$77.0 million** in cash and cash equivalents, and on July 1, 2025, it repaid its entire debt facility for approximately **$17.9 million**[197](index=197&type=chunk)[201](index=201&type=chunk) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($51,928) | ($54,512) | | Net cash provided by (used in) investing activities | $27,395 | ($67,033) | | Net cash (used in) provided by financing activities | ($6,245) | $5,982 | - The company will need to raise additional funds through equity offerings, debt, or collaborations to continue operations, as failure to do so could force delays or elimination of development programs[207](index=207&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate sensitivity on cash and equivalents, with no material foreign currency exposure - The company's main market risk is interest rate sensitivity on its **$77.0 million** in cash and cash equivalents, but a **1%** change in interest rates is not expected to have a material impact due to the short-term and low-risk nature of its investments[214](index=214&type=chunk) - The company is not currently exposed to material foreign currency exchange rate risks, though this could change with increased contracts with vendors in Europe or Asia[215](index=215&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[217](index=217&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the second quarter of 2025[218](index=218&type=chunk) [PART II - OTHER INFORMATION](index=45&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, other information, and exhibits [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in material legal proceedings, but may face claims in the ordinary course - As of the filing date, Mersana Therapeutics is not involved in any material legal proceedings[219](index=219&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section details significant financial, developmental, operational, and regulatory risks, including going concern doubts - A primary risk is the need for substantial additional financing to achieve its goals, as current cash is projected to last only into mid-2026, raising substantial doubt about its ability to continue as a going concern[221](index=221&type=chunk)[225](index=225&type=chunk) - The company's business is highly dependent on the success of its two clinical-stage candidates, Emi-Le and XMT-2056, and any failure in their clinical development would severely affect the business[235](index=235&type=chunk)[236](index=236&type=chunk) - The May 2025 restructuring and workforce reduction may not result in anticipated savings and could disrupt business operations, reduce employee morale, and harm the ability to attract and retain qualified personnel[455](index=455&type=chunk) - The company relies heavily on third-party manufacturers for clinical supplies and CROs to conduct clinical trials, exposing it to risks of supply interruption, quality issues, and lack of direct control over trial execution[262](index=262&type=chunk)[266](index=266&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=115&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period covered by this report - There were no unregistered sales of equity securities in the reported period[496](index=496&type=chunk) [Item 5. Other Information](index=116&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-10b5-1 trading arrangements during Q2 2025 - No directors or officers adopted or terminated a Rule 10b5-1 or non-10b5-1 trading plan during the second quarter of 2025[497](index=497&type=chunk) [Item 6. Exhibits](index=116&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents and officer certifications

Emi-Le (XMT-1660) Clinical Development - Mersana is advancing Emi-Le to address the high unmet need in post-Topo-1 TNBC, with over 40 patients enrolled in the expansion phase at two doses and plans to present initial expansion data in the second half of 2025[5] - Confirmed objective responses were observed across various tumor types including HR+BC, endometrial cancer, ovarian cancer, and ACC-1[5] - In the intermediate dose range, an ORR of 31% (8/26) was observed in evaluable patients with B7-H4 high tumors, including a 23% (3/13) ORR in TNBC and a 50% (2/4) ORR in endometrial cancer[55] - In evaluable patients with B7-H4 high post-Topo-1 TNBC in the intermediate dose range, the confirmed ORR was 23% (3/13), and 29% (2/7) in patients with ≤4 prior lines of therapy[58] - Preliminary data in the high dose range suggest potential for even greater clinical activity, with 7 out of 11 evaluable patients achieving tumor reductions of ≥30% at doses >674 mg/m2[67] XMT-2056 and Platform Collaborations - XMT-2056, an Immunosynthen STING agonist HER2 ADC, is in Phase 1 dose escalation, with plans to present initial clinical pharmacodynamic STING activation data in 2025[5] - Mersana has a global license option agreement with GSK plc for XMT-2056[5] - Mersana has a Dolasynthen research collaboration with Johnson & Johnson and an Immunosynthen research collaboration with Merck KGaA, Darmstadt, Germany[5] Safety and Tolerability - Emi-Le was observed to be generally well-tolerated, with any treatment-related adverse event (TRAE) occurring in 830% (117/141) of patients, Grade 3 TRAEs in 369% (52/141), and TRAEs leading to treatment discontinuation in 35% (5/141)[43] - The most common TRAEs were transient AST increase, generally asymptomatic and reversible proteinuria, generally low-grade fatigue and nausea[47] Market Opportunity - The global relapsed/refractory TNBC market is projected to exceed $1 billion annually starting in 2025[28] ACC-1 Clinical Activity - In patients with ACC-1, the ORR was 556% (5/9) across all doses, unselected for B7-H4 expression[94]

[Business Update and Q2 2025 Financial Results](index=1&type=section&id=Mersana%20Therapeutics%20Provides%20Business%20Update%20and%20Announces%20Second%20Quarter%202025%20Financial%20Results) Mersana Therapeutics provided a comprehensive business update, highlighting clinical progress for Emi-Le and XMT-2056, corporate actions like a reverse stock split, and detailed Q2 2025 financial performance [Business and Pipeline Update](index=1&type=section&id=Business%20and%20Pipeline%20Update) Mersana Therapeutics reported encouraging clinical data for its lead ADC, Emi-Le, and advanced its Phase 1 dose expansion, while XMT-2056 progressed and a $15 million GSK milestone was achieved [Emiltatug Ledadotin (Emi-Le; XMT-1660)](index=1&type=section&id=Emiltatug%20Ledadotin%20(Emi-Le%3B%20XMT-1660)) The company presented positive clinical data for Emi-Le, its B7-H4-directed ADC, at ASCO 2025 and ESMO Breast Cancer 2025, highlighting its activity in patients with TNBC and ACC-1, with initial data from the Phase 1 dose expansion trial anticipated in the second half of 2025 - Encouraging clinical data for Emi-Le was presented in oral sessions at both ASCO 2025 and ESMO Breast Cancer 2025, showing activity in patients with post-topo-1 TNBC and adenoid cystic carcinoma type 1 (ACC-1)[3](index=3&type=chunk)[5](index=5&type=chunk) - The Phase 1 dose expansion has enrolled over **45 patients** with TNBC across two cohorts[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - Mersana plans to report initial clinical data from these expansion cohorts in the **second half of 2025**[3](index=3&type=chunk)[6](index=6&type=chunk)[8](index=8&type=chunk) [XMT-2056](index=2&type=section&id=XMT-2056) The Phase 1 dose escalation for XMT-2056, a HER2-targeting Immunosynthen ADC, is ongoing, with Mersana achieving a $15 million development milestone from GSK and expecting initial clinical pharmacodynamic STING activation data in the second half of 2025 - The dose escalation portion of the Phase 1 clinical trial for XMT-2056, targeting a novel HER2 epitope, is currently ongoing[9](index=9&type=chunk) - In July 2025, Mersana achieved a **$15 million** development milestone under its agreement with GSK, with payment due in **Q3 2025**[9](index=9&type=chunk) - Initial clinical pharmacodynamic STING activation data for XMT-2056 is expected to be presented in the **second half of 2025**[9](index=9&type=chunk) [Collaborations](index=2&type=section&id=Collaborations) The company continues to support its ongoing research collaborations with Johnson & Johnson for the Dolasynthen platform and with Merck KGaA, Darmstadt, Germany for the Immunosynthen platform - Mersana continues to support its Dolasynthen research collaboration with Johnson & Johnson and its Immunosynthen research collaboration with Merck KGaA, Darmstadt, Germany[10](index=10&type=chunk) [Corporate Developments](index=2&type=section&id=Corporate%20Developments) Mersana executed a 1-for-25 reverse stock split in late July 2025, which successfully reduced the number of outstanding shares and led to regaining compliance with Nasdaq's minimum bid price requirement in August 2025 - A **1-for-25 reverse stock split** became effective on July 25, 2025, reducing outstanding common stock from approximately **124.8 million shares to 5.0 million shares**[11](index=11&type=chunk) - On August 11, 2025, the company received formal notification from Nasdaq confirming it had regained compliance with the minimum bid price requirement[12](index=12&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) For Q2 2025, Mersana reported a net loss of $24.3 million, nearly identical to the prior year, with increased collaboration revenue, decreased R&D and G&A expenses, and $77.0 million in cash and cash equivalents expected to fund operations into mid-2026 - Cash and cash equivalents were **$77.0 million** as of June 30, 2025, with capital resources expected to fund operations into **mid-2026**[13](index=13&type=chunk) Second Quarter 2025 Key Financials | Financial Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | Collaboration Revenue | $3.1 | $2.3 | | R&D Expense | $16.2 | $17.2 | | G&A Expense | $7.4 | $10.5 | | Restructuring Expenses | $3.9 | $0 | | Net Loss | $(24.3) | $(24.3) | | Net Loss Per Share | $(4.87) | $(4.96) | - The decrease in R&D and G&A expenses was primarily related to lower headcount and related employee compensation costs[16](index=16&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The condensed consolidated financial statements detail Mersana's financial position as of June 30, 2025, and operational results for the three and six months then ended, including cash, assets, liabilities, and net loss [Selected Condensed Consolidated Balance Sheet Data](index=5&type=section&id=Selected%20Condensed%20Consolidated%20Balance%20Sheet%20Data) As of June 30, 2025, Mersana had $77.0 million in cash, cash equivalents, and marketable securities, a decrease from year-end 2024, with total assets at $84.6 million, total liabilities at $137.7 million, and a total stockholders' deficit of $53.1 million Selected Condensed Consolidated Balance Sheet Data | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and marketable securities | $76,972 | $134,620 | | Total assets | $84,573 | $144,663 | | Total liabilities | $137,719 | $154,172 | | Total stockholders' deficit | $(53,146) | $(9,509) | [Condensed Consolidated Statement of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations) For the three months ended June 30, 2025, Mersana reported collaboration revenue of $3.1 million and total operating expenses of $27.6 million, resulting in a net loss of $24.3 million, or $4.87 per share, comparable to the prior year Condensed Consolidated Statement of Operations | (in thousands, except per share data) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Collaboration revenue | $3,056 | $2,293 | | Research and development | $16,218 | $17,245 | | General and administrative | $7,415 | $10,503 | | Restructuring expenses | $3,940 | - | | **Total operating expenses** | **$27,573** | **$27,748** | | **Net loss** | **$(24,296)** | **$(24,268)** | | **Net loss per share — basic and diluted** | **$(4.87)** | **$(4.96)** |

Core Viewpoint - Mersana Therapeutics is making significant progress in the development of its antibody-drug conjugates (ADCs), particularly Emi-Le, with promising clinical data presented at major oncology conferences and ongoing patient enrollment in clinical trials [2][4][5]. Clinical Development - The company presented clinical data for Emi-Le at ASCO 2025 and ESMO Breast Cancer 2025, showcasing its activity in triple-negative breast cancer (TNBC) and adenoid cystic carcinoma type 1 (ACC-1) [2][4]. - Mersana is currently enrolling patients in two dose expansion cohorts for Emi-Le, with over 45 patients enrolled so far, and plans to report initial clinical data in the second half of 2025 [5][8]. Financial Performance - For Q2 2025, Mersana reported collaboration revenue of $3.1 million, an increase from $2.3 million in Q2 2024, attributed to higher revenue from partnerships with Johnson & Johnson and Merck KGaA [15][20]. - The company incurred a net loss of $24.3 million for Q2 2025, consistent with the loss of $24.3 million in Q2 2024, with a net loss per share of $4.87 compared to $4.96 in the prior year [15][20]. Cash Position - As of June 30, 2025, Mersana had cash and cash equivalents of $77.0 million, down from $134.6 million at the end of 2024 [15][18]. - The company expects its capital resources to support its operating plan commitments into mid-2026 [15]. Corporate Actions - Mersana executed a 1-for-25 reverse stock split on July 25, 2025, reducing the number of outstanding shares from approximately 124.8 million to about 5.0 million [8][10]. - The company regained compliance with Nasdaq's minimum bid price requirement as of August 11, 2025, following a closing bid price of at least $1.00 for 10 consecutive business days [11]. Collaborations - Mersana continues to advance its collaborations with Johnson & Johnson and Merck KGaA, focusing on research related to its Dolasynthen and Immunosynthen ADC platforms [7].

Company Overview - Mersana Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing antibody-drug conjugates (ADCs) targeting cancers with high unmet medical needs [3] - The company has proprietary platforms for cytotoxic (Dolasynthen) and immunostimulatory (Immunosynthen) ADCs, leading to a pipeline of product candidates [3] Pipeline and Product Candidates - Mersana's pipeline includes Emi-Le (emiltatug ledadotin; XMT-1660), a Dolasynthen ADC targeting B7-H4, and XMT-2056, an Immunosynthen ADC targeting a novel epitope of human epidermal growth factor receptor 2 (HER2) [3] Upcoming Financial Updates - Mersana Therapeutics will provide business updates and report its financial results for the second quarter ended June 30, 2025, on August 13, 2025 [1] - A conference call and webcast will be held at 8:00 a.m. Eastern Time on the same day [1]

Core Points - Mersana Therapeutics, Inc. announced a 1-for-25 reverse stock split effective July 25, 2025, aimed at increasing the per-share market price to comply with Nasdaq listing requirements [1][2] - The reverse stock split will reduce the number of outstanding shares from approximately 124.8 million to about 5.0 million, without changing the number of authorized shares or par value [4] - The company's common stock will begin trading on a split-adjusted basis on July 28, 2025, under the existing ticker "MRSN" [3] Company Overview - Mersana Therapeutics is a clinical-stage biopharmaceutical company focused on developing antibody-drug conjugates (ADCs) for cancer treatment, addressing high unmet medical needs [1][8] - The company has proprietary ADC platforms, including Dolasynthen and Immunosynthen, with a pipeline of product candidates targeting various cancers [8] - Notable candidates in the pipeline include Emi-Le (emiltatug ledadotin) targeting B7-H4 and XMT-2056 targeting a novel epitope of HER2 [8]