Stock in Wall Street Spotlight: Merus N.V. (NASDAQ: MRUS)

On 08 May 2020, Merus N.V. (NASDAQ: MRUS) changed -1.70% to recent value of $15.6. The stock transacted 42420 shares during most recent day however it has an average volume of 102.54K shares. It spotted trading -25.54% off 52-week high price. On the other end, the stock has been noted 53.15% away from the low price over the last 52-weeks.

Merus N.V. (MRUS) recently reported financial results for the fourth quarter and full year ended December 31, 2019, and provided a business update.

Full Year 2019 Financial Results

In previous periods, the Company prepared its financial information in accordance with IFRS.  As a consequence of becoming a domestic issuer as of January 1, 2020, the Company is required to present its financial information in accordance with U.S. GAAP and expressed in U.S. dollars from that date.  As U.S. GAAP will be the basis of preparing and presenting financial information, the below unaudited financial information has been prepared in accordance with U.S. GAAP. The financial information should not be predictable to correspond to figures the Company has before presented under IFRS.

Alliance revenue for the year ended December 31, 2019 ($31.3M) reduced $6.8M as contrast to the year ended December 31, 2018 ($38.1M), primarily as a result of a decrease in Incyte reimbursement revenue of $3.2M, $1.0M upfront payment from Betta recognized in 2018 that is non-recurring in 2019, decrease in Ono reimbursement revenue of $0.9M and $0.6M lower Ono milestone revenue. The decrease in exchange rates through 2019 negatively influenced alliance revenue by $1.3M.

Research and development expense for the year ended December 31, 2019 ($55.7M) increased $0.9M as contrast to the year ended December 31, 2018 ($54.8M), primarily as a result of a raise in headcount and higher preclinical research and development-related costs related to the Company’s programs, particularly increases in costs for MCLA-117 offset by decreases in costs for zenocutuzumab and MCLA 145.

General and administrative expense for the year ended December 31, 2019 ($34.1M) increased $4.7M as contrast to the year ended December 31, 2018 ($29.4M), primarily as a result of a raise in headcount, consulting, accounting and professional fees as well as higher facilities-related expenses.

Other income, net ($3.7M) consists of interest earned on the Company’s cash, cash equivalents and marketable securities held on account, accretion of investment earnings and net foreign exchange gains on our foreign denominated cash, cash equivalents and marketable securities. For the year ended December 31, 2018, other income ($17.6M) included a gain recognized upon the settlement of litigation with Regeneron of $8.1M.

The Company ended 2019 with cash, cash equivalents and marketable securities of $241.8M contrast to $235.4M at December 31, 2018. The increase was primarily the result of net proceeds received from the issuance of ordinary stock, net of cash used in operations and purchases of property, plant and equipment, and effects of exchange rate changes.

The company has 31.05M of outstanding shares and 25.41M shares were floated in the market. According to the most recent quarter its current ratio was 6.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of 11.11% from the mean of 20 days, 12.74% from mean of 50 days SMA and performed -1.48% from mean of 200 days price. Company’s performance for the week was 12.55%, 39.41% for month and YTD performance remained 10.80%.

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