BTIG ups Mersana Therapeutics PT to $32 from $21

Mersana Therapeutics Logo

BTIG raised its price target for Mersana Therapeutics (NASDAQ:MRSN) to $32 from $21, saying the company’s STING agonist antibody-drug conjugates look compelling on the evolving immunoncology landscape. The stock closed at $21.31 on June 23.

“Mechanistically, these molecules act analogously to Fc-enhanced monoclonal antibodies that have shown compelling synergy with immunoncology,” writes analyst Thomas Shrader. 

The key feature of this platform is the tumor-targeted delivery of the STING agonist after systemic administration, with very low toxicity, he added. 

Mr. Shrader said the ability of these antibody-drug conjugates to generate an anti-tumor activity in the severe combined immunodeficient mouse model (lacking T-cells) “highlights their robust immunological activity solely based on the innate immune response.”  

These activated immune cells further secrete cytokines/chemokines, which can subsequently activate an adaptive immune response, generating an anti-tumor memory response, he added. 

Mersana will disclose its first Immunosynthen antibody-drug conjugate candidate and a path forward in the second half of 2020, Mr. Shrader said.

Sign up for the BioTuesdays weekly newsletter

Get the latest news on the healthcare industry’s corporate and clinical developments, executive moves, and market updates. Every Tuesday, in your inbox.