Merus N.V. Reports $26.5 Million Revenue and $96.5 Million Net Loss in Latest Quarter

Merus N.V. reported significant financial developments in its latest quarterly filing, revealing a total revenue of $26.5 million for the three months ended March 31, 2025, a substantial increase from $7.9 million in the same period last year. This growth was primarily driven by $13.3 million in commercial material revenue from Partner Therapeutics, Inc. (PTx) and a $5.3 million rise in collaboration revenue, which included contributions from Biohaven and Gilead. However, the company also faced a net loss of $96.5 million, compared to a loss of $34.5 million in the prior year, largely due to increased operating expenses.

Operating expenses surged to $102.2 million, up from $54.7 million in the previous year, with research and development costs accounting for $80.1 million, a significant rise from $38.6 million. This increase was attributed to heightened clinical trial activities, particularly for the candidate petosemtamab (MCLA-158), which is undergoing multiple trials for solid tumors. General and administrative expenses also rose, reflecting increased personnel costs and share-based compensation.

In terms of strategic developments, Merus entered into a collaboration agreement with Gilead Sciences in March 2024, which included a $56 million upfront payment and the potential for additional milestone payments totaling approximately $1.5 billion. The company also licensed its product zenocutuzumab to PTx for commercialization in the U.S., further expanding its market reach. As of March 31, 2025, Merus had total deferred revenue of $65.1 million, primarily from upfront payments under its collaboration agreements.

Merus's cash and cash equivalents stood at $197.2 million as of March 31, 2025, down from $293.3 million at the end of 2024. The company anticipates that its existing cash reserves will fund operations into 2028, although it acknowledges the need for additional financing to support ongoing clinical trials and development efforts. The company’s outlook remains cautious, emphasizing the unpredictable nature of clinical trials and the potential impact of global economic conditions on its financial stability.

Overall, while Merus N.V. has made strides in revenue generation and strategic partnerships, it continues to face challenges related to high operating costs and significant net losses, necessitating careful management of its financial resources as it advances its clinical programs.