Please ensure Javascript is enabled for purposes of website accessibility

Why Mersana Therapeutics Stock Is Skyrocketing Today

By Keith Speights – May 27, 2020 at 10:39AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors are excited about the biotech's encouraging results from an early-stage clinical trial.

What happened

Shares of Mersana Therapeutics (MRSN 4.22%) were skyrocketing 32.7% higher as of 11:07 a.m. EDT on Wednesday. The big jump came after the biotech announced positive interim results from the expansion portion of an early-stage study evaluating antibody-drug conjugate (ADC) XMT-1536 in treating patients with ovarian cancer.

So what

Investors liked the numbers that Mersana reported from its early-stage study. Patients receiving XMT-1536 achieved a 35% objective response rate (tumor reduction by a pre-specified amount). Ten percent of patients with ovarian cancer experienced complete remission after taking XMT-1536. The disease control rate (proportion of patients with complete response, partial response, or stable disease) was 80%.

Red line pointing up with a rocket flying over it

Image source: Getty Images.

In addition, XMT-1536 appeared to have a pretty good safety profile. Mersana Therapeutics CEO Anna Protopapas said the drug was "generally well tolerated, without the dose-limiting toxicities of other ADC platforms such as severe neutropenia, neuropathy and ocular toxicity."

All of these results were also really early. The interim results reflected data from only 20 patients with ovarian cancer. Mersana didn't report any information from the other 14 patients in the study, seven of whom have ovarian cancer and seven of whom have non-small cell lung adenocarcinoma.

Now what

Mersana plans to present the interim data at the American Society of Clinical Oncology (ASCO) 2020 virtual scientific program this Friday. An even bigger catalyst for the biotech stock could be on the way: Mersana anticipates reporting more data from the early-stage study of XMT-1536 in the second half of 2020.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Mersana Therapeutics, Inc. Stock Quote
Mersana Therapeutics, Inc.
MRSN
$6.42 (4.22%) $0.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.