Bank of America Raises Price Target for Merus

Bank of America Raises Price Target for Merus

Bank of America has increased its price target for Merus to $92 from $70, citing highly favorable results from a Phase 2 trial that tested the combination of petosemtamab and pembrolizumab in treating first-line head and neck squamous cell carcinoma (HNSCC).

Key Findings from the Phase 2 Trial

  • The trial demonstrated an impressive 12-month objective survival rate of 79% in the full cohort.
  • This rate compares favorably with historical benchmarks for pembrolizumab monotherapy, which have shown survival rates ranging from 50% to 59% in the same patient population.

According to Bank of America, "We believe this data positions the peto + pembr combination as a potentially best-in-class treatment option for patients with HNSCC." The analysis suggests that these results are likely driven by high levels of PD-L1 expression across all patients treated with petosemtamab.

Other Developments at Merus

Merus is also developing several other products, including:

  • Molidustat (MOD): Approved by regulatory bodies outside North America.
  • Zilucoplan (ZIL): Received Breakthrough Therapy designation by the FDA.
  • MGL-3196 (MGL) / MGL-301 (M301): Both have received Fast Track designation by the FDA.
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