Merus N.V. (MRUS) | Investment Case

1. Company Snapshot

1.a. Company Description

Merus N.V., a clinical-stage immuno-oncology company, engages in the discovery and development of bispecific antibody therapeutics in the Netherlands.Its bispecific antibody candidate pipeline includes Zenocutuzumab (MCLA-128), which is in a phase 2 clinical trials for the treatment of patients with metastatic breast cancer, as well as in Phase 1/2 clinical trials for the treatment of solid tumors that harbor Neuregulin 1.The company is also developing MCLA-158, which is in a phase I clinical trial for the treatment of solid tumors; MCLA-145, which is in phase 1 clinical trials for the treatment of solid tumors; MCLA-129, which is in phase 1/2 clinical trials for the treatment of patients with advanced non-small cell lung cancer and other solid tumors; and ONO-4685 that is Phase 1 clinical trial to treat relapsed/refractory T cell lymphoma.

In addition, it has collaboration agreement with Betta Pharmaceuticals Co. Ltd for the research and development of stage bispecific antibody candidates include MCLA-129; and collaboration with Incyte Corporation for the development of MCLA-145.The company was incorporated in 2003 and is headquartered in Utrecht, the Netherlands.

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1.b. Last Insights on MRUS

Merus N.V.'s recent performance has been impacted by unusual options trading, with a significant increase in call options volume, rising 3,555% above typical levels. Major shareholder A/S Genmab has been actively buying shares, acquiring 212,177 shares, 15,710 shares, and 2,978 shares on separate occasions. Additionally, Ensign Peak Advisors Inc increased its stake in Merus by 72.4%. However, the company's rating has been a "Hold" with one sell, fourteen hold, and four buy recommendations. Genmab's tender offer to acquire all outstanding shares of Merus for $97 per share has also been a focus.

1.c. Company Highlights

Last Price	90
Change Percentage	0.00%
Open	90
Previous Close	90
Market Cap ( Millions)	6826
Volume	2720520
Year High	97.14
Year Low	33.19
M A 50	95.61
M A 200	68.01

FCF Yield	-4.66%
Dividend Yield	0.00%
ROE	-50.79%
Debt / Equity	1.59%
Net Debt / EBIDTA	93.69%
Price To Book	10.29
Price Earnings Ratio	-19.52
Price To FCF	-21.47
Price To sales	128.91
EV / EBITDA	-20.15

2. Transcript Summary

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3. NewsRoom

Merus Power Delivers an Energy Storage System for Extreme Arctic Conditions

Feb -11

Source: businesswire.com

Federated Hermes Inc. Sells 279,425 Shares of Merus N.V. $MRUS

Jan -29

Source: defenseworld.net

Merus N.V. (NASDAQ:MRUS) Receives Average Recommendation of “Hold” from Analysts

Jan -07

Source: defenseworld.net

Market Today: Tesla dethroned; Wall St. starts 2026 higher

Jan -02

Source: gurufocus.com

First Look: Futures Climb, FTSE 10,000, BYD Tops Tesla

Jan -02

Source: gurufocus.com

First Look: 2026 Outlook, Buffett Exit, Fed Split, Dollar Slide

Jan -01

Source: gurufocus.com

A/S Genmab Buys 2,978 Shares of Merus (NASDAQ:MRUS) Stock

Jan -01

Source: defenseworld.net

Market Today: Buffett era ends; Tesla warns; stocks cap strong 2025

Dec -31

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.30%)

6. Segments

Innovative Therapeutics

Expected Growth: 11.3%

Merus N.V.'s Innovative Therapeutics segment growth of 11.3% is driven by increasing adoption of bispecific antibodies, strong pipeline of novel oncology candidates, and strategic partnerships. Additionally, growing demand for targeted therapies, expansion into new markets, and investments in research and development are contributing to the segment's rapid growth.

7. Detailed Products

MCLA-117

A bispecific antibody targeting Lgr5 and EGFR, for the treatment of solid tumors

MCLA-128

A bispecific antibody targeting HER2 and HER3, for the treatment of breast cancer and gastric cancer

MCLA-158

A bispecific antibody targeting Lgr5 and EGFR, for the treatment of solid tumors

Zenocutuzumab (MCLA-128)

A bispecific antibody targeting HER2 and HER3, for the treatment of breast cancer and gastric cancer

Petosemtiv (MCLA-129)

A bispecific antibody targeting EGFR and c-MET, for the treatment of non-small cell lung cancer

8. Merus N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Merus N.V. is moderate due to the presence of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is low for Merus N.V. due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Merus N.V. due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants is high for Merus N.V. due to the low barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry is high for Merus N.V. due to the presence of several competitors in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	3.30%
Debt Cost	9.42%
Equity Weight	96.70%
Equity Cost	9.42%
WACC	9.42%
Leverage	3.41%

11. Quality Control: Merus N.V. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Genmab

A-Score: 5.8/10

Value: 3.2

Growth: 9.7

Quality: 9.5

Yield: 0.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

Alkermes

A-Score: 5.0/10

Value: 4.9

Growth: 8.4

Quality: 8.9

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

Jazz Pharmaceuticals

A-Score: 4.9/10

Value: 4.8

Growth: 7.1

Quality: 4.7

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

Merus

A-Score: 3.5/10

Value: 6.0

Growth: 1.8

Quality: 3.4

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

Zealand Pharma

A-Score: 3.3/10

Value: 7.0

Growth: 2.2

Quality: 9.9

Yield: 0.0

Momentum: 0.5

Volatility: 0.3

1-Year Total Return ->

CRISPR Therapeutics

A-Score: 2.6/10

Value: 6.6

Growth: 1.1

Quality: 3.8

Yield: 0.0

Momentum: 3.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

35.48%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.42%

Merus N.V. - NL0011606264

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MRUS

1.c. Company Highlights

Strong Momentum

Lower Quality

More Volatile

Earnings Beats

Revenues Miss

Lower Growth

Earnings Miss

Revenues Beats

Medium Volatility

Average Yield

Weak Momentum

Stable Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.30%)

6. Segments

Innovative Therapeutics

Expected Growth: 11.3%

7. Detailed Products

MCLA-117

MCLA-128

MCLA-158

Zenocutuzumab (MCLA-128)

Petosemtiv (MCLA-129)

8. Merus N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Merus N.V. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

90.0$

Current Price

90$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA