Day One Biopharmaceuticals (NASDAQ: DAWN) announced a definitive merger agreement to acquire clinical-stage biopharmaceutical company Mersana Therapeutics (NASDAQ: MRSN) for $25 per share in cash, representing a significant 182% premium over Mersana's November 12 closing price of $8.87. The acquisition values Mersana at approximately $129 million at closing, with potential milestone payments bringing the total deal value to up to $285 million.
Transaction Structure and Timeline
Under the agreement, Day One will launch a tender offer to acquire all outstanding MRSN shares at $25 per share in cash at closing. Additionally, shareholders will receive one non-tradable contingent value right (CVR) per share, which could provide up to $30.25 per CVR in cash upon achievement of specific clinical, regulatory, and commercial milestones related to Mersana's B7-H4-directed antibody-drug conjugate, Emi-Le. This structure brings the total potential consideration to $55.25 per share.
The tender offer is expected to commence within 10 business days of November 12, 2025, with the transaction anticipated to close by the end of January 2026, subject to customary closing conditions including the tender of a majority of Mersana's shares and U.S. regulatory approvals. Day One expects to finance the acquisition entirely with existing cash resources.
Strategic Focus on ADC Technology
The acquisition centers on Mersana's antibody-drug conjugate (ADC) platforms and pipeline. Mersana has developed proprietary cytotoxic (Dolasynthen) and immunostimulatory (Immunosynthen) ADC platforms that have generated a pipeline of wholly-owned and partnered product candidates with the potential to treat a range of cancers. The company's pipeline includes Emi-Le (emiltatug ledadotin; XMT-1660), a Dolasynthen ADC targeting B7-H4, and XMT-2056, an Immunosynthen ADC targeting a novel epitope of human epidermal growth factor receptor 2 (HER2).
Market Response and Shareholder Support
Mersana's stock experienced a dramatic surge in premarket trading on November 13, 2025, jumping 199.13% to $26.53 as of 8:00 AM EST. The premarket gain of $17.66 per share reflects investor enthusiasm for the acquisition offer, which provides immediate liquidity to shareholders who had seen the stock decline 75.19% year-to-date and 83.87% over one year prior to the announcement.
Approximately 8.5% of Mersana's outstanding shares, held by company executives, directors, and certain stockholders affiliated with Bain Capital Life Sciences, are already committed to the tender offer, providing a foundation of shareholder support for the deal. The transaction was unanimously approved by the Mersana board of directors.
Company Profiles and Strategic Rationale
Day One Biopharmaceuticals is a commercial-stage biopharmaceutical company focused on addressing the critical unmet need in pediatric cancer therapeutic development. The company was founded to re-envision cancer drug development and redefine what's possible for all people living with cancer, regardless of age. Day One's current pipeline includes tovorafenib (OJEMDA™) and DAY301.
Prior to the acquisition announcement, analyst sentiment on Mersana had been cautiously optimistic, with a consensus price target of $28.29 and most analysts maintaining "Buy" ratings on the stock. The most recent analyst action came from Truist Securities on August 14, 2025, which maintained a "Buy" rating but reduced its price target from $250 to $36, reflecting concerns about the company's valuation and clinical progress.
The acquisition will make Mersana a wholly-owned subsidiary of Day One once completed, with TD Cowen acting as financial advisor to Mersana and Wilmer Cutler Pickering Hale and Dorr LLP serving as legal counsel. Fenwick & West LLP is serving as legal counsel to Day One.
