Mersana Therapeutics(MRSN) - 2025 Q2 - Quarterly Results

Business Update and Q2 2025 Financial Results 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 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) 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][5] - The Phase 1 dose expansion has enrolled over 45 patients with TNBC across two cohorts[6][7][8] - Mersana plans to report initial clinical data from these expansion cohorts in the second half of 2025[3][6][8] 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] - In July 2025, Mersana achieved a $15 million development milestone under its agreement with GSK, with payment due in Q3 2025[9] - Initial clinical pharmacodynamic STING activation data for XMT-2056 is expected to be presented in the second half of 2025[9] 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] Corporate Developments 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] - On August 11, 2025, the company received formal notification from Nasdaq confirming it had regained compliance with the minimum bid price requirement[12] Second Quarter 2025 Financial Results 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] 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] Financial Statements 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 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 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) |