By Shares of Mersana Therapeutics, a clinical-stage biopharmaceutical company based in Cambridge, Massachusetts, plummeted to an all-time low following the disappointing results of a late-stage study in ovarian cancer. The company announced that it will be discontinuing the development of its lead product candidate, upifitamab rilsodotin (UpRi), after it failed to meet its primary endpoint of objective response rate in patients with platinum-resistant ovarian cancer.
As a result, Mersana is now taking steps to wind down development activities related to UpRi and instead redirect its focus towards other candidates in its development pipeline. This decision has led to a significant reduction in the company’s workforce, with around half of its employees being let go.
The news of the study’s failure and Mersana’s subsequent restructuring has had a profound impact on the company’s stock price. Shares are currently trading at 85.4 cents, representing a staggering 78% decrease from previous levels. At one point during the session, the stock reached its lowest point ever, dipping to 80.1 cents.
In light of these developments, analysts at Wedbush Securities have downgraded Mersana shares from outperform to neutral. They have also lowered their price target on the stock from $12 to $2. The analysts expressed concerns about the uncertainty surrounding the future of the company’s platforms and noted a lack of significant catalysts in the near-term.
The steep decline in Mersana’s stock price has also resulted in a considerable drop in its market capitalization. Currently valued at under $100 million, this falls well short of the $286.6 million the company reported having in cash, equivalents, and marketable securities as of June 30.
It remains to be seen how Mersana Therapeutics will navigate this setback and capitalize on other candidates in its pipeline. The company now faces the challenging task of regaining investor confidence and demonstrating its ability to bring successful products to market.
Image caption: Mersana Therapeutics experiences a significant setback as its lead product candidate fails a late-stage study in ovarian cancer. The company is now redirecting its focus towards other candidates in its development pipeline.
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