Analysts for SVB Leerink and BTIG raised their price targets for Mersana Therapeutics (NASDAQ:MRSN) to $21 from $12 and $14, respectively, citing positive interim data from the expansion portion of the company’s Phase 1 trial of XMT-1536. The stock was quoted at $14.87, up $4.11, or 38%, at mid-day on May 27.
“We continue to view the data as highly promising for XMT-1536 in platinum-resistant ovarian cancer, and believe the confirmed overall response rate of 35% and disease control rate of 80% in 20 evaluable ovarian cancer patients unselected for NaPi2b expression compare favorably to benchmarks,” writes analyst Jonathan Chang of Leerink.
Mr. Chang increased XMT-1536’s probability of success in this patient population to 60% from 35%, which increased his price target.
Thomas Shrader of BTIG said Mersana’s ovarian cancer program looks “increasingly de-risked.” He increased XMT-1536’sprobability of success to 75% from 60%.
Mersana plans to provide additional data in the second half of 2020 to set a path forward to approach the FDA about a possible accelerated approval strategy based on overall response rate, he added.
Mr. Shrader said additional data expected later this year would potentially define the patient population that shows meaningful efficacy and would be optimal for the pivotal study.
