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Investing.com - Guggenheim maintained its Buy rating on Mersana (NASDAQ:MRSN) stock but significantly reduced its price target to $30 from $125 on Thursday following the company’s second-quarter 2025 results. According to InvestingPro data, analyst targets for MRSN range from $8 to $250, with the stock currently trading at $6.81, suggesting potential upside despite recent price weakness.
The biotech firm reported that its triple-negative breast cancer (TNBC) dose expansion cohorts for its lead program emi-le have enrolled over 45 patients and remain on track to report data in the second half of 2025. Most patients were enrolled under a protocol amendment allowing for ACEi/ARB prophylaxis and increased threshold for dose holds.
Mersana management expressed optimism that these amendments could enable fewer dose interruptions at Dose B, potentially resulting in more patients achieving tumor reductions. The company also maintained confidence in the market opportunity for emi-le in post-topo1 TNBC and potentially other areas such as HER2-low breast cancer.
Mersana ended the second quarter with $77.0 million in cash and cash equivalents, maintaining its financial runway guidance into mid-2026.
Guggenheim’s price target adjustment reflects the quarterly results, updated operating expense assumptions, and Mersana’s recent 1-for-25 reverse stock split that became effective on July 25, 2025.
In other recent news, Mersana Therapeutics reported its second-quarter 2025 earnings, revealing a significant miss in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of -4.87, which was substantially lower than the expected -0.16, resulting in a surprise of 2943.75%. Revenue for the quarter was 3.06 million dollars, falling short of the anticipated 6.25 million dollars by 51.04%. Despite these results, BTIG raised its price target for Mersana Therapeutics from $6.00 to $17.00, maintaining a Buy rating on the stock. This adjustment follows updates on Mersana’s lead B7-H4 ADC program, Emi-Le, which showed continued progress with over 45 triple-negative breast cancer patients enrolled. The company anticipates clinically meaningful data from this program in the second half of 2025. These developments reflect recent activity surrounding Mersana Therapeutics.
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