NASDAQ$MRUS

Merus Nv · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Merus reported a decrease in collaboration revenue for the full year 2024 compared to 2023, primarily due to decreases in Lilly and Incyte revenue, partially offset by increases in Gilead and other revenue. The company also saw a significant increase in research and development expenses and general and administrative expenses for the full year.

Merus reported a net loss of $215.326 million for the full year 2024, an increase from the $154.939 million net loss in 2023. Total revenue for the full year was $36.133 million, down from $43.947 million in 2023. The company's cash and cash equivalents stood at $293.294 million as of December 31, 2024, with total assets at $782.693 million.

  • Full year 2024 collaboration revenue decreased by $7.8 million compared to 2023, primarily due to decreases in Lilly and Incyte revenue, partially offset by increases in Gilead and other revenue.
  • Research and development expense for the full year 2024 increased by $84.7 million compared to 2023, driven by increased external clinical services, drug manufacturing costs, and personnel-related expenses.
  • General and administrative expense for the full year 2024 increased by $23.0 million compared to 2023, mainly due to higher personnel-related expenses, consultancy expenses, and legal expenses.
  • Merus' existing cash, cash equivalents, and marketable securities are expected to fund operations into 2028.

Headline financials

Total Revenue

$36.1M

Previous: $8.94M+304.2%
EPS (adj)

-$3.35

Previous: -$1.09-207.3%
R&D Expense

$225M

No prior period
G&A Expense

$82.8M

No prior period
Total Operating Expenses

$308M

No prior period
Interest Income

$30.8M

No prior period
Foreign Exchange Loss

$34.1M

No prior period
Other Income

$64.9M

No prior period
Income Tax Expense

$8.15M

No prior period
Currency Translation Adjustment

-$32.9M

No prior period
Comprehensive Loss

-$248M

No prior period
Weighted Avg. Shares Outstanding

64.2M

No prior period
Marketable Securities

$244M

No prior period
Accounts Receivable

$1.26M

No prior period
Prepaid & Other Current Assets

$30.8M

No prior period
Total Current Assets

$569M

No prior period
Property & Equipment, Net

$10.8M

No prior period
Operating Lease ROU Assets

$9.25M

No prior period
Intangible Assets, Net

$1.68M

No prior period
Deferred Tax Assets

$1.52M

No prior period
Other Assets

$3.39M

No prior period
Accounts Payable

$4.16M

No prior period
Accrued Expenses & Liabilities

$44M

No prior period
Income Taxes Payable

$7.32M

No prior period
Current Lease Obligation

$1.7M

No prior period
Current Deferred Revenue

$29.9M

No prior period
Total Current Liabilities

$87.1M

No prior period
Lease Obligation

$8.21M

No prior period
Deferred Revenue (Non-current)

$39.5M

No prior period
Total Liabilities

$135M

No prior period
Common Shares Outstanding

68.8M

No prior period
Additional Paid-In Capital

$1.66B

No prior period
Accumulated Deficit

-$968M

No prior period
Accum. Other Comprehensive Income

-$55.5M

No prior period
Total Shareholders’ Equity

$648M

No prior period
Capital Expenditures

$24.3K

Previous: $73.9K-67.2%
Free Cash Flow

-$62.8M

Previous: -$34.8M-80.4%
Net Income

-$215M

Previous: -$60.2M-258.0%
Operating Income

-$272M

Previous: -$47.5M-472.3%
Cash & Equivalents

$293M

Previous: $355M-17.4%
Total Assets

$783M

Previous: $458M+70.7%

Revenue & EPS history

Merus · Revenue · Quarterly

$36.1M

Q4 2024+304.2%vs Q4 2023
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Merus expects its existing cash, cash equivalents, and marketable securities to fund operations into 2028. The company anticipates substantial enrollment in Phase 3 registrational trials for petosemtamab in 1L PD-L1+ r/m HNSCC and 2/3L r/m HNSCC by year-end 2025, with clinical data updates for petosemtamab in 1L PD-L1+ r/m HNSCC in 1H25 and initial clinical data for mCRC in 2H25.

Tailwinds

  • Phase 3 registrational trials for petosemtamab in 1L PD-L1+ r/m HNSCC and 2/3L r/m HNSCC are enrolling and expected to be substantially enrolled by YE25.
  • Clinical data update for petosemtamab in 1L PD-L1+ r/m HNSCC phase 2 trial is planned for 1H25.
  • Initial clinical data for petosemtamab in mCRC is planned for 2H25.
  • Existing cash, cash equivalents, and marketable securities are expected to fund operations into 2028.
  • Randomized registration trial in HNSCC with an overall response rate endpoint could potentially support accelerated approval.

Headwinds

  • Potential delays in regulatory approval could impact the ability to commercialize product candidates and generate revenue.
  • The lengthy and expensive process of clinical drug development has an uncertain outcome.
  • The unpredictable nature of early-stage development efforts for marketable drugs.
  • Potential delays in patient enrollment for clinical trials.
  • Reliance on third parties to conduct clinical trials and manufacture products may lead to unsatisfactory performance or delays.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 8 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.5%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-0.7%

Avg return

30 days after

49%

19 / 39 earnings

Positive

+19.7%

Q3 2023

Best reaction

-16.2%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025-0.2%+0.2%+1.0%
Q2 2025-2.8%-4.2%+0.1%
Q1 2025-0.3%+0.4%+28.4%
Q4 2024+1.5%+3.6%-18.8%
Q3 2024-1.9%+0.8%-12.4%
Q2 2024-1.8%-5.8%-4.3%
Q1 2024-7.4%-5.8%+8.7%
Q4 2023-0.9%+2.3%-8.1%
Q3 2023+19.7%
Q2 2023-11.7%
Q1 2023+9.9%
Q4 2022+4.0%
Q3 2022-16.2%
Q2 2022-8.4%
Q1 2022+0.8%
Q4 2021+6.4%
Q3 2021+8.1%
Q2 2021+3.0%
Q1 2021-3.8%
Q4 2020+3.2%
Q3 2020-3.2%
Q2 2020-1.5%
Q1 2020+3.5%
Q4 2019+11.9%
Q3 2019-0.8%
Q2 2019+7.7%
Q1 2019+3.0%
Q4 2018+3.8%
Q3 2018+2.5%
Q2 2018-2.8%
Q1 2018-1.1%
Q4 2017+2.6%
Q3 2017-7.1%
Q2 2017+5.0%
Q1 2017+0.1%
Q4 2016-3.5%
Q3 2016+4.2%
Q2 2016-1.5%
Q1 2016-3.4%
Q4 2014
Q2 2014
Q1 2014

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