Merus N.V. Reports Significant Financial Developments, Cash and Cash Equivalents Reach $433M

Merus N.V., a clinical-stage oncology company based in Utrecht, Netherlands, reported significant financial developments in its recent 10-Q filing for the quarter ending September 30, 2024. The company’s cash and cash equivalents surged to $433.0 million, up from $204.2 million at the end of 2023, while total current assets increased to $666.3 million from $368.8 million. Total assets also rose to $844.7 million, compared to $455.5 million at the end of the previous fiscal year. Shareholders’ equity saw a substantial increase to $703.3 million from $356.3 million, reflecting a rise in additional paid-in capital to $1.64 billion.

In terms of revenue, Merus reported total revenue of $11.8 million for Q3 2024, a slight increase from $11.0 million in Q3 2023. However, for the nine months ended September 30, 2024, total revenue decreased to $27.0 million from $35.0 million in the same period last year. This decline was primarily attributed to reduced collaboration revenue from partners Incyte and Eli Lilly, offset by increases from other collaborations.

Operating expenses for Q3 2024 rose significantly to $84.0 million, compared to $49.4 million in Q3 2023, driven by a notable increase in research and development expenses, which reached $63.2 million, up from $36.8 million. The company reported a net loss of $99.9 million for Q3 2024, compared to a net loss of $23.0 million in the same quarter of the previous year. For the nine-month period, the net loss was $184.4 million, up from $94.8 million in 2023.

Strategically, Merus entered into a collaboration agreement with Gilead Sciences in March 2024, receiving a $56.0 million upfront payment and additional funding through common stock purchases. The collaboration focuses on developing trispecific T-cell engaging multi-specific antibody products using Merus’ proprietary Triclonics® platform. The company is also engaged in ongoing clinical trials for its key candidates, including zenocutuzumab (MCLA-128) and petosemtamab (MCLA-158), both of which have received Fast Track and Breakthrough Therapy designations from the FDA.

Merus anticipates continued significant expenses and operating losses as it advances its antibody candidates through various stages of development. The company may require additional financing to support ongoing operations, which could come from public equity offerings, debt financings, or collaborations. As of September 30, 2024, Merus had sufficient cash and marketable securities to fund operations into 2028, although it acknowledges potential market volatility and economic conditions that could impact its financing capabilities.