Mersana Therapeutics, Inc. (MRSN): Business Model Canvas [Dec-2025 Updated]

You're looking at Mersana Therapeutics, Inc. right now, and honestly, the business model is defined by a massive pivot: the pending acquisition by Day One Biopharmaceuticals. Before that deal closes, the current engine is still its clinical-stage Antibody-Drug Conjugate (ADC) platforms, like Emi-Le, supported by big pharma cash-they pulled in $11.0 million in collaboration revenue and a $15 million milestone from GSK in Q3 2025 alone. Still, with cash at $56.4 million as of September 30, 2025, following a significant workforce reduction, the immediate focus is clearly on managing clinical trials while conserving capital until the merger finalizes. Dive below to see how these key partnerships and assets map out across the entire canvas.

Mersana Therapeutics, Inc. (MRSN) - Canvas Business Model: Key Partnerships

You're looking at the structure of Mersana Therapeutics, Inc. (MRSN) as it stands following the late 2025 acquisition announcement. The partnerships are critical, both for the pipeline that Day One Biopharmaceuticals, Inc. is acquiring and for the historical value generation. Here's the breakdown of those key alliances as of the third quarter of 2025.

Day One Biopharmaceuticals, Inc. for the Pending Acquisition

The most significant recent event is the definitive merger agreement with Day One Biopharmaceuticals, Inc., announced in November 2025. This deal fundamentally alters the Key Partnering block, as Day One is set to become the new steward of the pipeline. The structure is heavily back-loaded, which is a key financial consideration. You receive an upfront consideration of $25.00 per share in cash for each share of Mersana Therapeutics common stock tendered. The total equity value at closing is pegged at approximately $129 million. However, the total potential deal value is up to approximately $285 million, contingent upon performance. This upside comes from potential contingent value rights (CVRs) cash payments of up to an aggregate of $30.25 per share, triggered by milestones related to Emi-Le and an existing collaboration milestone. The closing of this transaction is expected by the end of January 2026, pending customary conditions.

GSK plc for the XMT-2056 Immunosynthen ADC Program

The collaboration with GSK plc on XMT-2056, the lead Immunosynthen ADC candidate targeting a novel HER2 epitope, continues to be a source of near-term revenue. Mersana Therapeutics achieved and received a $15 million development milestone under this agreement in the third quarter of 2025. This milestone payment positively impacted the Q3 2025 operating cash flow, which was a net cash use of only $3.2 million despite R&D spending. To recall the original structure, Mersana received a $100 million upfront option purchase fee, and if GSK exercises its option, Mersana is eligible for up to $1.36 billion in further payments, plus tiered double-digit royalties on net sales.

Janssen Biotech, Inc. (Johnson & Johnson) for Dolasynthen ADC collaboration

Mersana Therapeutics continues to support its 2022 collaboration with Janssen Biotech, Inc. (Johnson & Johnson) focused on the Dolasynthen ADC platform. A significant event in Q3 2025 was Johnson & Johnson receiving clearance from the U.S. Food and Drug Administration (FDA) for an investigational new drug application for a Dolasynthen ADC developed under this agreement. This progress is tied to a specific financial trigger: an $8.0 million development milestone associated with the further progress of this first-in-human clinical trial. The original 2022 deal provided Mersana Therapeutics with $40 million upfront and the potential for over $1 billion in milestone payments, alongside royalties. Collaboration revenue recognized from this agreement in Q3 2025 was lower compared to Q3 2024.

Merck KGaA, Darmstadt, Germany for collaboration and license agreements

The Immunosynthen research collaboration with Merck KGaA, Darmstadt, Germany, also remains active. This partnership, signed in 2022, involves developing novel ADCs against up to two targets using Mersana's Immunosynthen platform. The upfront payment for this deal was $30 million, and Mersana is eligible for up to $800 million in potential milestone payments, plus tiered royalties up to low double-digit percentages. Similar to the Johnson & Johnson agreement, revenue recognized from the Merck KGaA, Darmstadt, Germany agreement decreased year-over-year in the third quarter of 2025.

Clinical research organizations (CROs) and trial sites for Emi-Le development

For the lead wholly-owned asset, Emi-Le (emiltatug ledadotin), the development relies on a network of clinical trial sites executing the multicenter Phase 1 study (NCT05377996). The focus in late 2025 is on the dose expansion cohorts. As of August 13, 2025, more than 45 patients had been enrolled in the dose expansion cohorts for Emi-Le. Furthermore, as of October 1, 2025, the company noted it had enrolled a 'substantially greater number' of patients with adenoid cystic carcinoma type 1 (ACC-1) in backfill cohorts than previously reported at the ASCO 2025 meeting. The FDA has granted Emi-Le two Fast Track designations for specific breast cancer indications.

Here's a summary of the key financial metrics tied to these external relationships in Q3 2025:

The company's cash position as of September 30, 2025, stood at $56.4 million, with management expecting this to cover operating plan commitments into mid-2026.

The structure of these deals shows Mersana Therapeutics' historical strength in platform licensing, even as the near-term focus shifts to the Day One Biopharmaceuticals acquisition. Finance: draft 13-week cash view by Friday.

Mersana Therapeutics, Inc. (MRSN) - Canvas Business Model: Key Activities

You're looking at the core engine driving Mersana Therapeutics, Inc. right now, which, as of late 2025, has been heavily shaped by a strategic pivot to focus capital. The key activities are all about advancing the two main clinical assets while managing the financial restructuring that took place earlier in the year.

Clinical development of lead candidate Emi-Le (XMT-1660)

The primary focus is pushing Emiltatug Ledadotin (Emi-Le; XMT-1660), the B7-H4-directed Dolasynthen ADC. Mersana Therapeutics continued to advance its Phase 1 clinical trial, presenting updated data at the American Society of Clinical Oncology 2025 Annual Meeting (ASCO 2025) and the European Society for Medical Oncology Breast Cancer 2025 Annual Congress (ESMO Breast Cancer 2025).

The trial is enrolling patients in two specific dose expansion cohorts for triple-negative breast cancer (TNBC) patients who have previously received at least one topoisomerase-1 inhibitor (topo-1) ADC:

• Dose A cohort: receiving 67.4 mg/m2 of Emi-Le every four weeks (Q4W).
• Dose B cohort: receiving a loading dose of 44.5 mg/m2 on days 1 and 8 of the first cycle, followed by 80 mg/m2 Q4W.

As of August 2025, Mersana Therapeutics reported that more than 45 patients with TNBC had been enrolled across these two cohorts, with initial clinical data from these expansion cohorts planned for reporting in the second half of 2025. Looking at the clinical activity from earlier data (as of a March 8, 2025 cut-off):

The company holds two Fast Track designations from the U.S. Food and Drug Administration (FDA) for Emi-Le.

Advancing the Phase 1 trial for XMT-2056 (Immunosynthen ADC)

Mersana Therapeutics is also advancing the Phase 1 clinical trial for XMT-2056, their lead Immunosynthen ADC candidate targeting a novel HER2 epitope. This trial is ongoing, and the company expected to present initial clinical pharmacodynamic STING activation data in the second half of 2025.

Key financial activity tied to this asset includes a development milestone:

• In the third quarter of 2025, Mersana Therapeutics achieved and received a $15 million development milestone under the agreement with GSK plc, which holds an exclusive global license option for XMT-2056.

Research and development (R&D) expense for the third quarter of 2025 was $12.2 million, compared to $14.8 million for the same period in 2024, with costs related to Emi-Le and XMT-2056 clinical development activities partially offsetting lower headcount-related costs.

Managing and supporting existing collaboration and license agreements

The company actively supports its existing partnerships, which are a source of non-dilutive capital and validation for its technology platforms, Dolasynthen and Immunosynthen. The key partners mentioned are Johnson & Johnson (Janssen Biotech, Inc.) and Merck KGaA, Darmstadt, Germany.

Collaboration revenue figures show the fluctuating nature of milestone-based income:

• Collaboration revenue for the second quarter of 2025 was $3.1 million, up from $2.3 million in Q2 2024.
• Collaboration revenue for the third quarter of 2025 was $11.0 million, down from $12.6 million in Q3 2024.

A significant event occurred under the Johnson & Johnson agreement in the third quarter of 2025: Johnson & Johnson received U.S. Food and Drug Administration (FDA) clearance for an investigational new drug application for a Dolasynthen ADC. An $8.0 million development milestone is associated with the further progress of this first-in-human clinical trial.

Maintaining and protecting proprietary ADC platform intellectual property

Mersana Therapeutics' operations are fundamentally based on maintaining and defending the intellectual property surrounding its proprietary ADC platforms, specifically Dolasynthen and Immunosynthen. While specific IP maintenance costs aren't itemized separately, the overall General and Administrative (G&A) expense for the third quarter of 2025 was reduced to $6.3 million, down from $9.9 million in Q3 2024, largely due to lower headcount and reduced consulting fees following the restructuring.

Strategic restructuring and workforce reduction to conserve capital

In May 2025, Mersana Therapeutics implemented a strategic restructuring to extend its cash runway. This involved a workforce reduction of approximately 55% across functions, expected to be substantially complete by the end of the third quarter of 2025. The goal was to support operating plan commitments into mid-2026.

The financial impact and cash management activities reflect this focus:

• Restructuring expenses incurred for the second quarter of 2025 totaled $3.9 million, primarily for severance.
• In July 2025, the company made a payment of approximately $17.9 million to satisfy in full its indebtedness under its previous loan and security agreement.
• Cash and cash equivalents stood at $77.0 million as of June 30, 2025, decreasing to $56.4 million as of September 30, 2025.
• Net cash used in operating activities for Q3 2025 was only $3.2 million, which reflects the positive impact of the $15 million GSK development milestone received that quarter.

Furthermore, in November 2025, Mersana Therapeutics announced a definitive merger agreement with Day One Biopharmaceuticals, Inc. The deal offers upfront consideration of $25.00 per share in cash, plus potential contingent value rights (CVRs) cash payments of up to an aggregate of $30.25 per share, representing a total deal value of up to approximately $285 million. The transaction is expected to close by the end of January 2026.

Mersana Therapeutics, Inc. (MRSN) - Canvas Business Model: Key Resources

Mersana Therapeutics, Inc. possesses proprietary technology platforms central to its operations.

• Proprietary Dolasynthen and Immunosynthen ADC platforms
• Scientific and clinical development personnel (post-restructuring) where R&D and G&A expenses reflected lower headcount and reduced external spend in Q3 2025 compared to Q3 2024.

The value of the Key Resources is further quantified by the intellectual property and the clinical progress achieved as of late 2025, alongside the current liquidity position.

The company expects its capital resources to support its current operating plan commitments into mid-2026.

Mersana Therapeutics, Inc. (MRSN) - Canvas Business Model: Value Propositions

Mersana Therapeutics, Inc.'s core value proposition centers on delivering novel Antibody-Drug Conjugates (ADCs) designed to address significant unmet medical needs in oncology, leveraging proprietary platform technologies.

Novel Antibody-Drug Conjugates (ADCs) for high unmet need cancers

The company offers differentiated ADC candidates, such as Emi-Le (emiltatug ledadotin; XMT-1660), a B7-H4-directed Dolasynthen ADC, and XMT-2056, the lead Immunosynthen ADC targeting a novel HER2 epitope. These assets target patient populations where existing treatments offer limited efficacy.

The value proposition is quantified by the clinical performance in challenging settings. For instance, Emi-Le is being developed for patients with triple-negative breast cancer (TNBC) who have previously been treated with a topoisomerase-1 inhibitor ADC (post-topo-1 TNBC), a group with high unmet need.

The Q3 2025 collaboration revenue for Mersana Therapeutics, Inc. was reported at $11.0 million. As of September 30, 2025, the company held cash and cash equivalents of $56.4 million, projecting runway into mid-2026.

Emi-Le's encouraging clinical activity in post-topo-1 TNBC patients

The clinical data presented for Emi-Le demonstrates a differentiated efficacy profile compared to historical benchmarks in heavily pre-treated patients. The focus is on providing a meaningful response option where standard-of-care single-agent chemotherapy in relapsed/refractory TNBC showed an Objective Response Rate (ORR) of approximately 5%.

Here is a summary of the interim Phase 1 clinical data for Emi-Le as presented at the 2025 ASCO Annual Meeting (data cut-off March 8, 2025):

The intermediate doses ranged from 38.1 mg/m² to 67.4 mg/m² per cycle. Emi-Le also received a second Fast Track designation from the U.S. Food and Drug Administration (FDA) for HER2-negative breast cancer treatment.

Immunosynthen platform's potential for in situ immune activation

The Immunosynthen platform is positioned to create immunostimulatory ADCs, offering a distinct mechanism of action. The value here is validated through progress on XMT-2056, the lead candidate from this platform.

Mersana Therapeutics, Inc. achieved and received a $15 million development milestone payment from GSK plc in the third quarter of 2025 related to XMT-2056. GSK plc holds an exclusive global license option to co-develop and commercialize XMT-2056. The company expects to present initial clinical pharmacodynamic STING activation data for XMT-2056 in the second half of 2025.

Strategic value to partners through platform licensing and pipeline assets

The proprietary platforms, Dolasynthen and Immunosynthen, generate value through both wholly-owned assets and significant partnerships. The value proposition to partners is the access to these differentiated technologies, which is reflected in milestone payments and collaboration revenue.

The company continues to support collaborations with Johnson & Johnson (Dolasynthen) and Merck KGaA, Darmstadt, Germany (Immunosynthen). The agreement with Merck KGaA, Darmstadt, Germany, for novel Immunosynthen ADCs included a $30 million upfront payment and potential milestones of up to $800 million. Furthermore, Johnson & Johnson received FDA IND clearance in Q3 2025 for a Dolasynthen ADC, which is associated with an $8.0 million development milestone.

The ultimate strategic value was crystallized by the Day One Biopharmaceuticals merger agreement, which offers shareholders an upfront cash consideration of $25.00 per share, plus up to an aggregate of $30.25 per share in cash via contingent value rights (CVRs) tied to Emi-Le milestones, bringing the total potential deal value to up to approximately $285 million.

• Upfront cash consideration: $25.00 per share.
• Maximum CVR value: $30.25 per share.
• Total potential equity value: Up to $55.25 per share.
• Expected transaction closing: By the end of January 2026.

Finance: draft 13-week cash view by Friday.

Mersana Therapeutics, Inc. (MRSN) - Canvas Business Model: Customer Relationships

Dedicated, high-touch collaboration management with pharma partners is central to Mersana Therapeutics, Inc.'s strategy, providing both non-dilutive funding milestones and validation for its ADC platforms.

Mersana Therapeutics, Inc. maintains active research and license agreements with major pharmaceutical entities, specifically Johnson & Johnson (for Dolasynthen ADCs), Merck KGaA, Darmstadt, Germany (for Immunosynthen ADCs), and GSK plc (for XMT-2056, which has an exclusive global license option).

Financial performance from these relationships in the third quarter of 2025 reflects ongoing activity:

The receipt of the $15 million GSK development milestone in the third quarter of 2025 helped offset the decrease in overall collaboration revenue compared to the prior year period. The company continues to support these collaborations, including the Johnson & Johnson agreement, where an Investigational New Drug application was cleared by the FDA in Q3 2025 for a Dolasynthen ADC. This level of engagement requires dedicated management to ensure milestones are met and options are exercised by partners.

Investor relations and communication shifted significantly in late 2025 due to the announced acquisition.

• Definitive merger agreement with Day One Biopharmaceuticals, Inc. announced November 13, 2025.
• Upfront consideration offered to stockholders is $25.00 per share in cash.
• Potential additional cash payments via Contingent Value Rights (CVRs) of up to an aggregate of $30.25 per share.
• Total equity value at closing estimated at approximately $129 million.
• Total potential deal value up to approximately $285 million.
• Closing of the transaction is expected by the end of January 2026.
• Support agreements were signed by executive officers, directors, and certain stockholders, covering approximately 8.5% of shares as of November 10, 2025.
• The previously scheduled Q3 2025 conference call to discuss business updates and financial results was cancelled following the merger announcement.

Direct engagement with clinical investigators and key opinion leaders (KOLs) centers on advancing the data package for their lead candidates, Emi-Le and XMT-2056. This engagement is critical for trial enrollment and establishing the therapeutic profile.

• Interim clinical data for Emi-Le in adenoid cystic carcinoma type 1 (ACC-1) patients was presented at ASCO in June 2025.
• As of October 1, 2025, the number of enrolled ACC-1 patients in backfill cohorts was substantially greater than what was presented at ASCO.
• Data presented at ESMO Breast Cancer 2025 showed an Objective Response Rate (ORR) of 31% across tumor types for evaluable patients with B7-H4 high tumors receiving intermediate Emi-Le doses.
• For the specific ACC-1 patient subset, the ORR reached 56% based on the March 8, 2025 data cut-off.
• Initial clinical data from Emi-Le expansion cohorts was planned for readout in the second half of 2025.
• Initial clinical pharmacodynamic STING activation data for XMT-2056 was also expected in the second half of 2025.

The company's cash position as of September 30, 2025, was $56.4 million, which management projected would sustain operational commitments into mid-2026, a key factor for maintaining investigator relationships during the transition period leading up to the merger close. The reduction in General and Administrative (G&A) expense to $6.3 million in Q3 2025 from $9.9 million in Q3 2024 suggests a leaner operational structure supporting these external relationships.

Mersana Therapeutics, Inc. (MRSN) - Canvas Business Model: Channels

Direct licensing and collaboration agreements with pharmaceutical companies

Mersana Therapeutics, Inc. channels product and platform value through established partnerships. Collaboration revenue for the third quarter of 2025 was reported as $11.0 million. This figure represented a decrease from $12.6 million recognized in the third quarter of 2024.

Key financial triggers within these agreements serve as direct revenue channels. In the third quarter of 2025, Mersana Therapeutics, Inc. achieved and received a $15 million development milestone under its agreement with GSK plc for XMT-2056. Also, an $8.0 million development milestone is associated with the further progress of the first-in-human clinical trial under the Johnson & Johnson agreement. The company continues to support its collaborations with Janssen Biotech, Inc. (Johnson & Johnson) and Merck KGaA, Darmstadt, Germany.

The acquisition by Day One Biopharmaceuticals, Inc. introduces a future channel for value realization tied to performance milestones. The deal includes contingent value rights (CVRs) cash payments of up to an aggregate of $30.25 per share.

Clinical trial sites for patient enrollment and drug delivery

Clinical trial sites are a critical channel for generating the data required to advance drug candidates and trigger collaboration milestones. For Emiltatug Ledadotin (Emi-Le; XMT-1660), the Phase 1 dose expansion cohorts had over 45 patients enrolled as of the second quarter of 2025. The company is investigating two dosing regimens for Emi-Le in these expansion cohorts.

The efficacy data generated at these sites directly informs the perceived value of the assets. Emi-Le showed a 31% objective response rate (ORR) across tumor types in B7-H4 high tumors at intermediate doses. In the specific indication of adenoid cystic carcinoma type 1 (ACC1), Emi-Le achieved a 56% ORR. For triple-negative breast cancer (TNBC) patients with B7-H4 high expression who received $\le$4 prior treatments, the ORR was 29%.

Scientific publications and medical conference presentations (e.g., ASCO, ESMO)

Dissemination of clinical data through scientific channels validates the technology platform. Mersana Therapeutics, Inc. presented updated clinical data for Emi-Le at ESMO Breast Cancer 2025 and the American Society of Clinical Oncology 2025 Annual Meeting (ASCO 2025).

Investor and media relations for corporate communications

Corporate communications channels focus on communicating strategic milestones to the investment community. The announcement of the definitive merger agreement with Day One Biopharmaceuticals, Inc. in November 2025 became the dominant communication focus. The upfront consideration offered is $25.00 per share in cash, leading to an aggregate deal value of up to approximately $285 million. The transaction closing is expected by the end of January 2026.

Financial health communicated through these channels shows the company's near-term stability. Cash and cash equivalents as of September 30, 2025, were $56.4 million. This capital position was expected to support the operating plan commitments into mid-2026. The net loss for the third quarter of 2025 was $7.5 million, or $1.51 per share. Net cash used in operating activities for that quarter was $3.2 million, which reflects the receipt of the $15 million GSK milestone.

• Net loss for Q3 2025: $7.5 million
• Diluted EPS for Q3 2025: $(1.51)
• Cash and equivalents as of September 30, 2025: $56.4 million
• Expected cash runway: into mid-2026
• Upfront acquisition consideration: $25.00 per share

Mersana Therapeutics, Inc. (MRSN) - Canvas Business Model: Customer Segments

You're looking at the customer base for Mersana Therapeutics, Inc. (MRSN) right before the Day One Biopharmaceuticals acquisition closed, which was targeted for the end of January 2026. The segments show a mix of strategic partners, clinical participants, patients with urgent needs, and, finally, the investors who were about to realize a significant exit event.

Large pharmaceutical and biotech companies seeking ADC technology

This segment represents the key strategic partners who validate the proprietary Dolasynthen and Immunosynthen ADC platforms through licensing and co-development deals. These relationships provide crucial non-dilutive funding and external validation for Mersana Therapeutics' technology.

Mersana Therapeutics continues to support its existing collaborations with major players in the space:

• Johnson & Johnson (Dolasynthen research collaboration).
• GSK plc (Exclusive global license option for XMT-2056).
• Merck KGaA, Darmstadt, Germany (Immunosynthen research collaboration).

The financial impact from these partners is concrete. For instance, in the third quarter of 2025, Mersana Therapeutics achieved and received a $15 million development milestone under its agreement with GSK plc. Also in Q3 2025, Johnson & Johnson received FDA clearance for an investigational new drug application for a Dolasynthen ADC, associated with an $8.0 million development milestone. Collaboration revenue for the third quarter of 2025 totaled $11.0 million. To be fair, collaboration revenue for the first quarter of 2025 was lower at $2.8 million. The Merck KGaA, Darmstadt, Germany agreement is structured for significant upside, where Mersana is eligible to receive up to $800 million in development, regulatory, and commercial milestone payments, plus royalties.

Oncologists and clinical investigators for trial participation

This group comprises the medical professionals who administer Mersana Therapeutics' investigational agents and enroll patients in the ongoing clinical studies. Their adoption and execution are vital for generating the data needed to advance the pipeline, especially for Emi-Le (emiltatug ledadotin).

Clinical trial activity in late 2025 focused heavily on Emi-Le, the B7-H4-directed Dolasynthen ADC:

• The Phase 1 clinical trial of Emi-Le had initial data presented at ASCO 2025 and ESMO Breast Cancer 2025.
• The company selected a second, higher dose for expansion in post-topoisomerase-1 inhibitor ADC (post-topo-1) triple-negative breast cancer (TNBC).
• Mersana Therapeutics expected to present initial clinical pharmacodynamic STING activation data for XMT-2056 in the second half of 2025.

Cancer patients with high unmet need, like triple-negative breast cancer (TNBC)

These are the ultimate end-users, specifically those with aggressive cancers where current treatments are insufficient. The focus here is on demonstrating superior efficacy and a manageable safety profile in heavily pre-treated populations.

Data from the Phase 1 trial of Emi-Le highlights the patient population being targeted:

• As of August 2025, more than 45 patients with TNBC had been enrolled across two dose expansion cohorts.
• The objective response rate (ORR) reached 31% across B7-H4 high tumors at intermediate doses.
• For a subset of patients with four or fewer prior lines of therapy, the ORR was 44%.
• In adenoid cystic carcinoma type 1 (ACC-1) patients, the ORR observed was 56%.
• The standard of care for the post-topo-1 TNBC population showed a low ORR of approximately 5%.
• Emi-Le has received two Fast Track designations from the U.S. Food and Drug Administration.

Shareholders, particularly those involved in the Day One acquisition

This segment is focused on the financial outcome and the certainty of value realization, especially given the stock's prior performance-it had declined 86.5% over the year prior to the acquisition announcement. The acquisition provided a clear, near-term financial event.

The terms of the definitive agreement with Day One Biopharmaceuticals, announced in November 2025, structure the return for shareholders:

A committed group, representing approximately 8.5% of outstanding shares, including executives and Bain Capital affiliates, signed tender agreements to support the deal. Financially, Mersana Therapeutics ended Q1 2025 with $102.3 million in cash and cash equivalents, with an expected cash runway into mid-2026. This stability was critical as Q2 2025 saw revenue of $3.06 million, missing the forecast of $6.25 million, and an EPS of -$4.87 versus an expected -$0.16. The acquisition offers certainty now-and optionality later. Finance: finalize CVR tracking mechanism documentation by December 15th.

Mersana Therapeutics, Inc. (MRSN) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Mersana Therapeutics, Inc. equation as of late 2025. The financials from the third quarter ended September 30, 2025, show a clear drive to reduce overhead following the strategic restructuring announced earlier in the year. Research and Development (R&D) expenses came in at $12.2 million for Q3 2025, which is down from $14.8 million in the same period last year. General and Administrative (G&A) expenses also saw a reduction, landing at $6.3 million for the quarter, down from $9.9 million year-over-year.

Here's the quick math on those core operating expenses for the third quarter of 2025:

The year-over-year drop in R&D spend was mainly due to lower headcount and associated employee compensation costs, but that saving was partially eaten up by increased spending on clinical development activities. Specifically, costs related to the Emi-Le (Emiltatug Ledadotin; XMT-1660) and XMT-2056 clinical trials continued to be a significant component of the R&D spend.

The major one-time hit to the cost structure came from the restructuring plan initiated in May 2025, which involved cutting approximately 55% of the workforce. While the restructuring was expected to be largely complete by the end of Q3 2025, the actual charges hit the preceding quarters. For instance, Mersana Therapeutics incurred $3.9 million in restructuring expenses during the second quarter of 2025, primarily covering severance and related payments. The initial estimate for the total expected costs from this workforce reduction was a cash expenditure between $4 million and $5 million.

The R&D expense reduction was driven by these headcount changes, but the ongoing clinical work is clearly a priority investment area. The key cost drivers within R&D that were still active include:

• Costs related to Emi-Le clinical development activities.
• Costs related to XMT-2056 clinical development activities.
• Manufacturing activities associated with collaborations.

The G&A reduction, on the other hand, was primarily related to lower headcount and a reduction in consulting and professional services fees. Finance: draft 13-week cash view by Friday.

Mersana Therapeutics, Inc. (MRSN) - Canvas Business Model: Revenue Streams

You're looking at how Mersana Therapeutics, Inc. (MRSN) brings in cash as of late 2025. The core of it relies heavily on its partnerships, which is pretty typical for clinical-stage biopharma.

Collaboration revenue from licensing and development agreements forms a key part of the income picture. Mersana Therapeutics, Inc. continues to support its ongoing collaborations with Janssen Biotech, Inc. (Johnson & Johnson) for the Dolasynthen research and with Merck KGaA, Darmstadt, Germany, for the Immunosynthen research. These deals bring in recognized revenue over time as work progresses.

For the third quarter of 2025, the total collaboration revenue clocked in at exactly $11.0 million. That's down a bit from the $12.6 million seen in the third quarter of 2024. This change reflects lower revenue recognized from the Johnson & Johnson and Merck KGaA agreements, though it was partially offset by revenue tied to the GSK agreement.

Specific, non-recurring payments are also a big deal. You saw a major one in Q3 2025: Mersana Therapeutics, Inc. achieved and received a development milestone payment of $15 million from GSK plc related to XMT-2056. That single payment significantly impacted the cash flow for the quarter, as net cash used in operating activities was only $3.2 million despite receiving that milestone.

Here's a quick look at the key revenue components from the Q3 2025 period:

Then there's the future potential tied up in the Day One Biopharmaceuticals merger. This is where contingent value rights (CVRs) come into play. You get the upfront cash of $25.00 per share, but the CVRs offer up to an aggregate of $30.25 per share more. These CVR payments are contingent on hitting specific clinical development, regulatory, and commercial milestones for Emi-Le, plus one milestone from an existing Mersana collaboration.

The structure of this potential payout is quite significant:

• Upfront Cash Consideration Per Share: $25.00
• Maximum CVR Payment Per Share: Up to $30.25
• Total Potential Deal Value: Up to approximately $285 million
• Estimated Equity Value at Closing: Approximately $129 million

The CVRs are definitely a key part of the long-term revenue expectation baked into the deal structure, contingent on Emi-Le success.