Mersana (MRSN) PT Lowered to $12 at Baird
Baird analyst Michael E. Ulz lowered the price target on Mersana (NASDAQ: MRSN) to $12.00 (from $14.00) while maintaining a Outperform rating.
Analyst comments: "Phase 1 dose escalation continues, and management indicated XMT-1536 remains well tolerated, while data from the study was narrowed to 2Q19 (1H19 previously). Importantly, selection of the go-forward dose and start of Phase 1 expansion cohorts are also expected in 2Q19. Separately, disclosure of the next clinical candidate remains on track for 2H19. Overall, we expect near-term focus to remain on XMT-1536, which we continue to believe is underappreciated, and we reiterate our Outperform rating."
As a reminder, MRSN reported fourth quarter and full year 2018 financial results and provided business updated today before the market open. Highlights of the earnings release:
Collaboration revenue for the fourth quarter 2018 was approximately $1.2 million, compared to $3.3 million for the same period in 2017. The decrease was largely the result of a decrease in efforts to support partnered programs.
Research and development expenses for the fourth quarter 2018 were approximately $19.8 million, compared to $14.6 million for the same period in 2017, driven primarily by an increase in clinical and regulatory expenses due to the progress of our XMT-1536 program and manufacturing costs to support the future clinical development of XMT-1536.
General and administrative expenses for the fourth quarter 2018 were approximately $4.2 million, compared to $3.1 million for the same period in 2017, driven primarily by increased employee-related expenses due to an increase in headcount and increased professional fees.
Net loss for the fourth quarter 2018 was $22.4 million, or $0.97 per share, compared to a net loss of $14.0 million, or $0.61 per share, for the same period in 2017. Weighted average common shares outstanding for the years ended December 31, 2018 and December 31, 2017, were 23,184,459 and 22,750,425, respectively.
Shares of MRSN trade up +5.69%, while IBB trades down -0.89% in afternoon trading.