Mersana Therapeutics Reports $69.2 Million Net Loss for 2024, Collaboration Revenue Increases

Mersana Therapeutics, Inc. reported a net loss of $69.2 million for the year ended December 31, 2024, compared to a net loss of $171.7 million in 2023. Collaboration revenue increased by $3.6 million to $40.5 million in 2024, primarily due to milestone payments from Johnson & Johnson and Merck KGaA, partially offset by decreased revenue from Merck KGaA and Asana Biosciences. Research and development expenses decreased by $75.2 million to $73.0 million, mainly due to the wind-down of UpRi clinical development and a reduction in headcount following a restructuring. General and administrative expenses also decreased by $18.7 million to $40.8 million, primarily due to lower consulting fees and reduced headcount.

The company's cash, cash equivalents, and marketable securities totaled $134.6 million as of December 31, 2024. This amount, along with potential milestone payments from ongoing collaborations with GSK, Johnson & Johnson, and Merck KGaA, is projected to fund operations into 2026. However, the company acknowledges substantial doubt about its ability to continue as a going concern beyond this period due to recurring operating losses and the need for additional funding. The company's funding strategy includes equity offerings, debt financing, and further strategic collaborations.

Significant developments during the year included the discontinuation of UpRi development in July 2023 following a Phase 2 clinical trial that did not meet its primary endpoint, and the completion of a restructuring that reduced the employee base by approximately 50%. The company also highlighted positive initial clinical data from a Phase 1 trial of Emi-Le, its lead Dolasynthen ADC, and the resumption of a Phase 1 trial of XMT-2056, its lead Immunosynthen ADC, following the resolution of an FDA clinical hold. The company continues to advance its clinical development programs for Emi-Le and XMT-2056 and its preclinical pipeline.

The company's operations rely heavily on collaborations with GSK, Johnson & Johnson, and Merck KGaA. These collaborations generated a significant portion of the company's revenue in 2024. Johnson & Johnson terminated its development of ADCs for two of the three targets under their collaboration agreement during the year. The company also highlighted its reliance on third-party manufacturers and suppliers for clinical trial materials and commercial manufacturing, should any of its product candidates receive regulatory approval.

The company's 10-K filing includes extensive discussion of risks related to its financial position, clinical development, reliance on third parties, commercialization, intellectual property, regulatory approvals, and compliance with various laws and regulations. The company's outlook is contingent upon the successful development, regulatory approval, and commercialization of its product candidates, which remain highly uncertain. The company also notes its non-compliance with Nasdaq's minimum bid price requirement and the potential consequences of delisting.