Merus N.V. (MRUS): Business Model Canvas [Dec-2025 Updated]

You're analyzing a clinical-stage oncology company that just hit a major inflection point. Merus N.V. (MRUS) isn't just another biotech; their proprietary bispecific platform is now validated by a late-2024 FDA approval for BIZENGRI® and a recent major acquisition approach. Honestly, the numbers back up the hype: they were sitting on $892 million in cash as of mid-2025, funding aggressive R&D that hit $0.328 billion over the trailing twelve months ending September 30, 2025, while pulling in $47.47 million in revenue for the first nine months of the year. This canvas breaks down exactly how Merus N.V. (MRUS) is structuring its high-stakes game of multispecific antibodies-dive in below to see the partnerships and costs driving this story.

Merus N.V. (MRUS) - Canvas Business Model: Key Partnerships

Key Partnerships are essential for Merus N.V. to extend the reach and capabilities of its proprietary technology platforms across different therapeutic modalities and geographies, which is critical for capital-efficient development.

Strategic co-development with Eli Lilly and Company for T-cell engagers

The research collaboration and exclusive license agreement with Eli Lilly and Company (Lilly), initiated in January 2021, focuses on developing up to three CD3-engaging T-cell re-directing bispecific antibody therapies using Merus N.V.'s Biclonics® platform. As of the first quarter of 2025, three programs under this collaboration are advancing through preclinical development. Merus N.V. leads discovery and early-stage research, funded by Lilly, which handles subsequent research, development, and commercialization.

The financial structure of the Lilly deal includes immediate capital infusion and significant potential upside:

Collaboration with Biohaven for bispecific Antibody Drug Conjugates (ADCs) as of January 2025

In January 2025, Merus N.V. started a research collaboration and license agreement with Biohaven Ltd. to co-develop three novel bispecific ADCs. This involves combining Merus N.V.'s Biclonics® technology with Biohaven's next-generation ADC conjugation and payload platforms. The agreement covers two Merus N.V. bispecific programs from the Biclonics® platform and one program under Merus N.V.'s preclinical research. As of the first quarter of 2025, all three programs are advancing through preclinical development. Merus N.V. is set to receive an upfront payment and license fee upon ADC candidate nomination for the first program. Merus N.V. assumes the preclinical bispecific antibody generation cost, while Biohaven handles the preclinical ADC generation cost. Subsequent development and commercialization costs are to be shared upon mutual agreement to advance each program.

Licensing deal with Partner Therapeutics (PTx) for U.S. commercialization of BIZENGRI®

Merus N.V. exclusively licensed the right to commercialize BIZENGRI® (zenocutuzumab-zbco) in the U.S. to Partner Therapeutics, Inc. (PTx) following its accelerated U.S. FDA approval in December 2024 for NRG1 fusion-positive (NRG1+) pancreatic adenocarcinoma and non-small cell lung cancer. Merus N.V. received an up-front payment from PTx. The deal structure includes potential future payments based on performance.

The financial expectations tied to this U.S. commercialization partnership are:

• Potential milestone payment up to $130 million.
• Royalties ranging from the high single digits to the low 20s on annual net sales.
• Wainwright estimated initial sales of $32 million in 2025, projected to grow to $234 million by 2034.

Research and license agreements with Gilead Sciences and Ono Pharmaceutical

The partnership with Gilead Sciences, established in March 2024, focuses on developing T-cell engaging trispecific antibody products using Merus N.V.'s Triclonics® platform. This collaboration includes at least two, but potentially up to three, preclinical research programs. Gilead provided an upfront, non-refundable payment of $56 million and a $25 million equity investment. The research and license agreement with Ono Pharmaceutical Co., Ltd., originally from April 2014, was updated in March 2018. Merus N.V. received an upfront payment for the initial deal and is eligible for milestones and sales royalties from resulting products.

Contract Research Organizations (CROs) for managing global clinical trials

Merus N.V. utilizes CROs to help manage its global clinical trials, supporting the progression of assets like petosemtamab through its Phase 3 LiGeR-HN1 and LiGeR-HN2 trials, which are expected to be substantially enrolled by the end of 2025. To fund these operations, including external trial management, Merus N.V. reported cash, cash equivalents, and marketable securities of $638 million as of March 31, 2025, which is expected to fund operations into 2028.

Merus N.V. (MRUS) - Canvas Business Model: Key Activities

You're looking at Merus N.V. (MRUS) right now, and the key activities are all about pushing their lead candidates through pivotal trials while monetizing their platform through existing partnerships. It's a classic, high-burn, high-potential biotech playbook, so the numbers around R&D are what you need to watch closely.

Aggressive Research and Development (R&D) for Biclonics® and Triclonics® platform

The R&D engine is running hot, which is expected when you have two potential blockbuster assets in late-stage testing. This spending is primarily directed at supporting the petosemtamab clinical trials, which are the company's main value driver right now. Honestly, the acceleration in R&D spend is the cost of trying to get a novel therapy to market quickly.

Here's the quick math on the R&D expense acceleration based on the first half of 2025 results:

For the twelve months ending September 30, 2025, Merus N.V.'s research and development expenses hit $0.328B (or $328 million), which was a 71.42% increase year-over-year. The net loss for the nine months ended September 30, 2025, reached $350.21 million, directly reflecting this aggressive investment pace.

Executing late-stage clinical trials, especially two Phase 3 trials for petosemtamab

The execution of the late-stage trials for petosemtamab is the most critical activity defining Merus N.V.'s near-term valuation. You're looking at two pivotal Phase 3 studies in head and neck squamous cell carcinoma (HNSCC).

• LiGeR-HN1: Phase 3 trial combining petosemtamab with pembrolizumab in first-line (1L) PD-L1+ recurrent/metastatic (r/m) HNSCC. Merus plans to enroll approximately 500 patients in this trial.
• LiGeR-HN2: Phase 3 trial evaluating petosemtamab monotherapy in second/third-line (2/3L) r/m HNSCC versus standard of care.

The expectation across the board is that both Phase 3 trials will be substantially enrolled by year-end 2025. Furthermore, the company anticipates providing topline interim readout for one or both of these registration trials in 2026. On the metastatic colorectal cancer (mCRC) indication, initial clinical data is planned for the second half of 2025 (2H25). The Phase 2 data supporting this push showed a 63% response rate among 43 evaluable patients and a 79% overall survival rate at 12-months for the combination therapy in 1L HNSCC.

Generating and protecting proprietary intellectual property (IP) for multispecific antibodies

Protecting the core technology-the Biclonics® and Triclonics® platforms-is non-negotiable. While specific 2025 patent filing counts aren't immediately available, the ongoing costs associated with this are factored into operating expenses. Merus N.V. explicitly notes that future capital requirements depend on the costs of preparing, filing, and prosecuting patent applications, maintaining, and enforcing its intellectual property rights. To be fair, general and administrative expense for the three months ended June 30, 2025, did show a decrease in intellectual property and license expenses of $0.3 million compared to the same period in 2024.

Manufacturing commercial material for licensed products like BIZENGRI®

This activity represents the first tangible commercial revenue stream, validating the platform beyond the lead asset. BIZENGRI® (zenocutuzumab-zbco) received U.S. FDA approval in December 2024 for NRG1-positive pancreatic adenocarcinoma and non-small-cell lung cancer. Merus N.V. exclusively licensed U.S. commercialization rights to Partner Therapeutics, Inc. (PTx).

This partnership immediately translated into revenue:

• Merus N.V. recognized $13.3 million in commercial material revenue from sales to PTx in the first quarter of 2025 (Q1 2025).
• This $13.3 million was a key component of the total revenue for the six months ended June 30, 2025.
• The deal structure includes potential milestone payments to Merus N.V. of up to $130 million, plus royalties ranging from the high single digits to the low 20s on annual net sales.

Finance: draft 13-week cash view by Friday.

Merus N.V. (MRUS) - Canvas Business Model: Key Resources

You're looking at the core assets Merus N.V. (Merus) is relying on to drive its late-stage oncology programs forward. These aren't just ideas; they are proprietary platforms and hard cash reserves.

Proprietary Technology Platform

The foundation of Merus N.V.'s value is its ability to engineer complex antibody structures. This is embodied in their proprietary technology platform, which generates full-length multispecific antibodies. You'll see this referred to by several names, all stemming from the same core science:

• Biclonics® technology platform.
• Triclonics® and ADClonics® for more complex constructs.
• Multiclonics® is the umbrella term for their bispecific and trispecific antibody therapeutics.

This technology is being actively leveraged through collaborations, such as the January 2025 agreement with Biohaven to co-develop three novel antibody drug conjugates (ADCs) using the Biclonics® platform.

Financial Capital for Operations

For a clinical-stage biotech, cash is king, and Merus N.V. has secured a significant runway. As of June 30, 2025, Merus N.V. reported $892 million in cash, cash equivalents, and marketable securities. This is a key resource because, based on the Company's current operating plan, this capital is expected to fund Merus N.V.'s operations at least into 2028. This funding position was bolstered by a successful public offering in the second quarter of 2025, which raised $345 million in gross proceeds.

Key Clinical Asset: Petosemtamab

The lead asset, petosemtamab (MCLA-158), is arguably the most critical resource right now. Its potential is underscored by regulatory recognition and strong interim data. Merus N.V. received Breakthrough Therapy Designation (BTD) from the U.S. Food and Drug Administration (FDA) in February 2025 for petosemtamab in combination with pembrolizumab for the first-line treatment of adult patients with recurrent or metastatic programmed death-ligand 1 (PD-L1) positive HNSCC with a combined positive score (CPS) $\ge$ 1.

The data supporting this designation is concrete:

• In the Phase 2 trial for 1L PD-L1+ r/m HNSCC, a 63% response rate was observed among 43 evaluable patients when combined with pembrolizumab.
• The 12-month overall survival rate in that same trial was 79%.
• As a monotherapy in 2L+ r/m HNSCC, the Phase 2 trial showed a 36% response rate among 75 evaluable patients, with a median overall survival of 12.5 months.

The company is pushing this asset hard, expecting both Phase 3 trials (LiGeR-HN1 and LiGeR-HN2) to be substantially enrolled by year end 2025.

Specialized Personnel and R&D Investment

While a specific headcount isn't readily available, the investment in the team and external support reflects this resource's importance. The R&D expense for the three months ended June 30, 2025, increased by $44.8 million compared to the same period in 2024. A significant portion of this, an increase of $37.9 million, was for clinical trial support provided by contract manufacturing and development organizations and contract research organizations, which directly supports the execution by the internal scientific and clinical development personnel.

Here is a snapshot of the quantifiable key resources and associated metrics as of mid-2025:

Finance: draft 13-week cash view by Friday.

Merus N.V. (MRUS) - Canvas Business Model: Value Propositions

You're looking at the core value Merus N.V. (MRUS) delivers to its customers-the patients and prescribers relying on their pipeline. It all centers on their proprietary antibody technology.

Innovative full-length human bispecific antibodies (Biclonics®) with long half-life

The fundamental value proposition rests on the Biclonics® platform, which creates full-length human bispecific antibodies. What's key here is that these molecules are designed to retain the desirable characteristics of natural, full-length immunoglobulin G (IgG) antibodies. This means they have inherent stability and, importantly, a long half-life in the body. Also, unlike many other bispecific formats, these don't need extra linkers or modifications to ensure the heavy and light chains pair up correctly, which helps with reliable, high-yield manufacturing.

• Retain qualities of natural human, full-length IgG antibodies.
• Exhibit stability, long half-life, and low immunogenicity.
• No linkers or modifications needed for correct chain pairing.

Petosemtamab's 63% response rate in 1L HNSCC, addressing a high unmet need

For first-line (1L) recurrent/metastatic head and neck squamous cell carcinoma (HNSCC), which carries a poor prognosis, petosemtamab in combination with pembrolizumab is showing compelling early results. As of the February 27, 2025 data cutoff, the interim Phase 2 data was impressive. We saw a confirmed overall response rate (ORR) of 63% in 43 evaluable patients. Honestly, this suggests a potential shift in the standard of care if the Phase 3 trials confirm it.

Here's a quick look at the durability metrics from that interim analysis:

What this estimate hides is that the Phase 3 trials are still enrolling, with both LiGeR-HN1 and LiGeR-HN2 expected to be substantially enrolled by the end of 2025.

First FDA-approved product, BIZENGRI® (zenocutuzumab), for NRG1+ cancer (Dec 2024)

Merus N.V. achieved a major milestone with the U.S. Food and Drug Administration (FDA) granting accelerated approval to BIZENGRI® (zenocutuzumab-zbco) on December 4, 2024. This is the first and only systemic therapy specifically approved for adults with advanced, unresectable, or metastatic non-small cell lung cancer (NSCLC) or pancreatic adenocarcinoma that harbors a neuregulin 1 (NRG1) gene fusion, provided they have progressed after prior systemic therapy. The approval was based on the efficacy seen in the eNRGy study.

The efficacy data supporting this approval for these hard-to-treat populations were:

The recommended dose for BIZENGRI® is 750 mg as an intravenous infusion every two weeks (q2wks).

Potential for superior efficacy and safety over conventional monoclonal antibodies

The platform's design, targeting two receptors simultaneously, offers a mechanism of action that can potentially surpass what conventional monoclonal antibodies (mAbs) achieve. For instance, petosemtamab targets EGFR x LGR5, and its combination data in 1L HNSCC showed a 63% ORR. This compares favorably to a competitor's bispecific in the same setting, which reported a 53% ORR. Also, the technology allows for enhanced immune engagement, such as enhanced antibody-dependent cell-mediated cytotoxicity and antibody-dependent cellular phagocytosis activity, which is a functional advantage over single-target mAbs.

Financially, Merus N.V. is funding this development with a solid balance sheet, reporting $892 million in cash, cash equivalents, and marketable securities as of June 30, 2025, which management projects will fund operations at least into 2028. Still, you should note the Q1 2025 net loss hit $96.5 million, nearly triple the loss from Q1 2024's $34.5 million.

Finance: draft 13-week cash view by Friday.

Merus N.V. (MRUS) - Canvas Business Model: Customer Relationships

You're looking at how Merus N.V. manages the critical external relationships that fuel its pipeline and financial runway. For a clinical-stage oncology company, these aren't just vendor agreements; they are lifeblood partnerships and crucial dialogues with the gatekeepers of medical practice and approval.

High-touch, long-term strategic alliances with major pharmaceutical partners

Merus N.V. structures its key external relationships around platform technology licensing and co-development, which is typical for a firm advancing novel bispecific and trispecific antibodies, referred to as Multiclonics®. These alliances provide non-dilutive funding milestones and shared development costs. The company is actively managing several such relationships as of late 2025.

The financial impact of these collaborations is visible in the reported revenue. For the six months ended June 30, 2025, total revenue increased by $20.1 million compared to the same period in 2024, driven partly by collaboration revenue increases of $6.8 million. Specifically, this included an upfront payment amortization increase from the Biohaven agreement of $5.1 million. Furthermore, Merus N.V. recognized $13.3 million in Commercial Material Revenue from Partner Therapeutics, Inc. (PTx) in the first quarter of 2025 (Q1 2025) related to BIZENGRI® (zenocutuzumab-zbco).

Here's a look at the key strategic alliances:

Direct engagement with Key Opinion Leaders (KOLs) and the oncology medical community

Engagement with clinicians and Key Opinion Leaders (KOLs) is centered on presenting compelling clinical data to build confidence in Merus N.V.'s pipeline assets, particularly petosemtamab. The CEO noted being 'thrilled by the response from clinicians and KOLs' following the data presentation at the 2025 ASCO® Annual Meeting. This positive reception is directly linked to driving the activation of sites for late-stage trials.

Key data points shared with the medical community include:

• Petosemtamab with pembrolizumab in 1L PD-L1+ r/m HNSCC showed a 63% response rate among 43 evaluable patients.
• The same combination demonstrated a 79% overall survival rate at 12-months.
• Phase 3 trials, LiGeR-HN1 and LiGeR-HN2, are both enrolling, with expectations they will be substantially enrolled by YE25.
• Initial clinical data on metastatic colorectal cancer (mCRC) is planned for the second half of 2025 (2H25).

Regulatory relationship management with the FDA and other global agencies

The relationship with the U.S. Food and Drug Administration (FDA) is a high-stakes, process-driven interaction, especially concerning the Biologics License Application (BLA) for zenocutuzumab (Zeno). The PDUFA goal date for Zeno was extended to February 4, 2025, to allow review of Chemistry, Manufacturing, and Control (CMC) information. Importantly, the FDA did not request any additional clinical data for Zeno.

For petosemtamab, Merus N.V. is actively managing the data presentation timeline, which directly informs regulatory strategy. The company announced interim clinical data for petosemtamab on October 24, 2025, based on a July 29, 2025 data cutoff. Merus believes securing a commercialization partnership is an important step in bringing Zeno to patients, pending approval.

Dedicated investor relations for capital market communication

Merus N.V. maintains a dedicated investor relations function, managed by SVP Investor Relations and Strategic Communications, Sherri Spear, to communicate financial health and operational milestones to the capital markets. The company's cash position is a key focus for investors, given the heavy R&D spending. As of June 30, 2025, Merus had $892 million in cash, cash equivalents, and marketable securities. This balance, bolstered by a public offering raising $345M gross proceeds on June 4, 2025, is projected to fund operations at least into 2028.

Financial reporting highlights for the period ending late 2025 include:

• Total revenue for the nine months ended September 30, 2025, reached $47.47 million.
• The net loss for Q3 2025 was $95.5 million on total revenue of only $12.2 million.
• Research and development expense for the six months ended June 30, 2025, increased by $86.3 million year-over-year.

The CEO, Bill Lundberg, M.D., actively participates in investor engagement, presenting at conferences such as the William Blair 45th Annual Growth Stock Conference on June 3, 2025, and the Jefferies Global Healthcare Conference on June 4, 2025.

Finance: draft 13-week cash view by Friday.

Merus N.V. (MRUS) - Canvas Business Model: Channels

You're looking at how Merus N.V. gets its science and potential products to the right people, which right now is heavily weighted toward strategic partnerships and clinical validation. It's a classic biotech channel strategy: use established players for global scale and data dissemination to build value.

Direct licensing and collaboration agreements with pharmaceutical companies for global reach

Merus N.V. relies significantly on its platform technology being licensed out to larger pharmaceutical companies to achieve global reach and share development costs. This is where a lot of the top-line revenue is currently generated, as product sales are not yet the primary driver.

For the nine months ended September 30, 2025, Merus N.V. reported total revenue of $47.47 million, which is overwhelmingly reliant on these collaboration deals.

Key collaboration channels include:

• The research collaboration and license agreement with Biohaven, announced in January 2025, for three novel bispecific antibody drug conjugates (ADCs).
• The agreement with Eli Lilly and Company (Lilly) from January 2021 to develop up to three CD3-engaging T-cell re-directing bispecific antibody therapies, with two programs advancing through preclinical development as of August 2025.
• The collaboration with Gilead Sciences, Inc. from March 2024, where Merus leads early-stage research for two programs, with an option for a third.
• The 2018 exclusive, worldwide license granted to Ono Pharmaceutical Co., Ltd. (Ono) utilizing Merus' Biclonics® technology.

The success of these licensing channels is evidenced by financial milestones, such as Merus N.V. receiving a milestone payment of $1 million during the second quarter of 2025 for the candidate nomination of a discovery program under the Biohaven collaboration.

Here's a quick look at the active platform technology licensing arrangements:

Clinical trial sites and Contract Research Organizations (CROs) for drug delivery to patients

The execution of clinical trials, which is essential for data generation and eventual regulatory approval, is channeled through a network of clinical trial sites and external service providers. This operational channel directly impacts the speed of development for assets like petosemtamab.

The investment in this channel is substantial. Research and development (R&D) expense for the three months ended June 30, 2025, increased by $44.8 million compared to the same period in 2024. A significant portion of this increase, specifically $37.9 million, was driven by clinical trial support provided by contract manufacturing and development organizations and Contract Research Organizations (CROs), mostly related to the petosemtamab clinical trials.

Enrollment progress is a key metric for this channel. Merus N.V. expects substantial enrollment for its ongoing Phase 3 trials of petosemtamab in head and neck cancer to be completed by the end of 2025.

Partner Therapeutics (PTx) commercial channel for BIZENGRI® in the U.S. market

For BIZENGRI® (zenocutuzumab), Merus N.V. established a dedicated commercial channel by exclusively licensing U.S. rights to Partner Therapeutics (PTx). This arrangement transfers the direct sales and marketing responsibilities for this product in the U.S. to PTx.

BIZENGRI® received accelerated U.S. Food and Drug Administration (FDA) approval in December 2024 for NRG1 fusion-positive non-small cell lung cancer (NSCLC) and pancreatic adenocarcinoma.

The financial structure of this channel involves Merus receiving an upfront payment (undisclosed) and being eligible for performance-based payments:

• Potential milestone payments up to $130 million.
• Royalties ranging from the high single digits to the low 20s on annual net sales in the U.S..

The market has initial expectations for this channel's performance, with estimated initial sales for BIZENGRI® in 2025 projected at $32 million.

Scientific publications and medical conferences (e.g., ASCO 2025) for data dissemination

Disseminating clinical data through peer-reviewed channels and major medical conferences is a critical channel for validating Merus N.V.'s science and attracting future partners or investors. The 2025 American Society of Clinical Oncology (ASCO) Annual Meeting served as a major channel for presenting interim data on petosemtamab in combination with pembrolizumab for first-line head and neck squamous cell carcinoma (HNSCC).

The data presented, which was based on a February 27, 2025 data cutoff, involved 45 patients treated, with 43 in the efficacy evaluable population. The key efficacy metrics shared through this channel were:

The clinical performance data from the ASCO 2025 presentation:

The company held a conference call and webcast on May 22, 2025, at 5:30 p.m. ET to discuss the full ASCO data set.

Merus N.V. (MRUS) - Canvas Business Model: Customer Segments

You're looking at the key groups Merus N.V. serves, which are primarily defined by the clinical stage and specific biomarker of their oncology assets as of late 2025. It's a mix of big pharma money and very specific patient populations.

The largest external customer segment involves the large global pharmaceutical and biotechnology companies that partner with Merus N.V. to access their proprietary antibody platforms like Biclonics® and Triclonics®. These relationships are financially significant, as evidenced by the recent acquisition announcement.

Merus N.V.'s internal financial health, which supports engaging these partners, shows a strong balance sheet as of mid-2025. Cash, cash equivalents, and marketable securities were $892 million as of June 30, 2025, expected to fund operations at least into 2028. Collaboration revenue for the three months ended March 31, 2025, increased by $18.6 million compared to the same period in 2024.

The primary patient segments are defined by the indications for their lead candidates, petosemtamab and Bizengri® (zenocutuzumab).

For petosemtamab (EGFR x LGR5 Biclonics®), the focus is on oncology patients with solid tumors, specifically Head and Neck Squamous Cell Carcinoma (HNSCC). Merus N.V. has two Phase 3 trials enrolling, LiGeR-HN1 (1L r/m HNSCC) and LiGeR-HN2 (2/3L r/m HNSCC), both expected to be substantially enrolled by year-end 2025.

• 1L PD-L1+ r/m HNSCC Phase 2 data (combination with pembrolizumab, data cutoff Feb 27, 2025): 43 evaluable patients showed a 63% response rate and a 79% overall survival rate at 12-months.
• 2L+ r/m HNSCC monotherapy Phase 2 data (ESMO Asia Congress): 36% response rate among 75 evaluable patients.
• The Phase 2 HNSCC trial enrolled 45 patients with a median age of 64 years (range 23-80).

The second critical patient group is patients with rare cancers like NRG1 fusion-positive pancreatic or lung cancer, treated with Bizengri® (zenocutuzumab). This drug received FDA approval for advanced unresectable or metastatic NRG1+ pancreatic adenocarcinoma or NSCLC.

• The eNRGy study reviewed results from 204 patients with 12 tumor types.
• Specifically, the trial included 30 patients with NRG1+ pancreatic adenocarcinoma and 64 patients with NRG1+ NSCLC.
• Across a retrospective analysis of 25,203 solid tumor patients, the overall frequency of NRG1 fusions was 0.2% (49 patients).
• In lung cancer patients from that analysis, the frequency was 0.29% (36 fusions out of 12,458 patients).

The final segment, oncologists and clinical investigators participating in trials, are essential for generating the data that supports the value proposition. The clinical trial support expense for Merus N.V. in Q1 2025 increased by $35.6 million compared to Q1 2024, largely related to petosemtamab trials.

Merus N.V. (MRUS) - Canvas Business Model: Cost Structure

The cost structure for Merus N.V. is heavily weighted toward the front end of drug development, which is typical for a clinical-stage immuno-oncology company. You see this capital intensity reflected in the massive operating losses required to advance their pipeline, such as the $95.52 million net loss reported for the third quarter ended September 30, 2025.

Dominant Research and Development (R&D) expenses, totaling $0.328 billion for the twelve months trailing (TTM) ending September 30, 2025, represent the single largest outflow of capital. This figure reflects a 71.42% year-over-year increase, showing the acceleration of late-stage trial activity.

High costs for clinical trial support, including CROs (Contract Research Organizations) and contract manufacturing, are the primary driver behind the R&D surge. For instance, the R&D expense for the six months ended June 30, 2025, saw an increase of $86.3 million year-over-year, with $73.7 million of that increase specifically tied to clinical trial support from contract manufacturing and development organizations and CROs, mostly related to the petosemtamab clinical trials. Similarly, the Q2 2025 R&D increase of $44.8 million included $37.9 million attributed to these external clinical service providers.

Significant General and Administrative (G&A) expenses are also a major component, primarily driven by personnel costs. For the three months ended March 31, 2025, G&A expenses rose by $6.0 million compared to the prior year, with personnel related expenses, including share-based compensation, accounting for $5.3 million of that increase. Legal fees also contribute to this overhead; for the three months ended June 30, 2025, legal expenses were up by $0.6 million year-over-year as part of the overall G&A increase of $2.7 million.

Intellectual property maintenance and patent prosecution costs are necessary expenditures to protect the proprietary Biclonics® platform and pipeline assets. While these costs fluctuate, they are a persistent part of the G&A structure. For example, in the second quarter of 2025, there was a decrease in intellectual property and license expenses of $0.3 million offsetting other G&A increases.

Here's a quick look at how some of these key expense drivers compared in recent periods:

You can see the R&D burn is the main event, but the operational overhead is also climbing as the company scales its team and legal/administrative footprint to support global trials. The cost structure is fundamentally about funding the clinical advancement of petosemtamab.

• R&D expenses are the dominant cost driver.
• Clinical trial support from CROs/CMOs is the largest R&D sub-component.
• Personnel costs, including share-based compensation, drive G&A increases.
• Legal fees and IP maintenance are ongoing administrative costs.

Finance: draft 13-week cash view by Friday.

Merus N.V. (MRUS) - Canvas Business Model: Revenue Streams

You're looking at the top-line figures for Merus N.V. (MRUS) as of late 2025, focusing on where the money actually comes from. It's heavily weighted toward partnerships, which is typical for a clinical-stage biotech.

Collaboration revenue is the bedrock here, stemming from upfront payments, milestone achievements, and research funding reimbursements under existing agreements. For the three months ended March 31, 2025, collaboration revenue saw a significant jump, increasing by $18.6 million compared to the same period in 2024. This increase was partly attributed to higher deferred revenue amortization during that quarter.

A key component of the recent revenue recognition is the commercial material revenue tied to the BIZENGRI® partnership with Partner Therapeutics (PTx). You saw $13.3 million recognized specifically from commercial material revenue in the first quarter of 2025. This same figure of $13.3 million was reported as commercial material revenue sold to PTx for the six months ended June 30, 2025.

Deferred revenue amortization reflects the recognition of those upfront payments received in prior years from partners like Gilead and Incyte. As of June 30, 2025, Merus N.V. reported total deferred revenue of $64.5 million. This balance is spread across agreements, with $53.9 million primarily related to the Gilead collaboration agreement and $10.6 million from the Incyte agreement. The amortization schedule for these is based on progress toward development milestones for the respective programs. For example, the Gilead revenue increase for the six months ended June 30, 2025, was driven by upfront payment amortization of $0.1 million.

Overall, the top line shows significant growth driven by these non-product sales revenue sources. Total revenue for the nine months ended September 30, 2025, reached $47.47 million. This compares to $26.99 million for the same nine-month period in 2024.

Here's a quick look at the reported revenue components near the reporting date:

• Total revenue (Nine Months Ended September 30, 2025): $47.47 million.
• Revenue (Q3 2025): $12.15 million.
• Commercial Material Revenue (Q1 2025): $13.3 million.
• Cash, cash equivalents, and marketable securities (March 31, 2025): $638 million.

The structure of this revenue stream is best seen by breaking down the known components that contribute to the overall collaboration revenue:

Finance: draft 13-week cash view by Friday.