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On Monday, H.C. Wainwright analyst Andrew Fein maintained a Buy rating and an $85.00 price target on Merus N.V. (NASDAQ:MRUS), falling within the broader analyst target range of $67-$109. With a market capitalization of $3.2 billion and a strong analyst consensus rating of 1.28 (where 1 is Strong Buy), Merus shows promising potential. According to InvestingPro data, the company holds more cash than debt on its balance sheet, positioning it well for continued clinical development. Fein’s endorsement of the stock comes amid significant progress in the clinical development of petosemtamab, Merus’s therapeutic candidate. The drug is currently undergoing Phase 3 trials for first-line PD-L1+ recurrent/metastatic head and neck squamous cell carcinoma (HNSCC) and for second/third-line treatment of the same condition, with an expected completion of enrollment by the end of 2025. InvestingPro analysis shows the company maintains a healthy current ratio of 6.54, indicating strong liquidity to support its ongoing clinical programs.
Fein highlighted that updated clinical data for petosemtamab, particularly as a combination therapy, will be presented in the first half of 2025. The focus of the upcoming data will be to confirm response rates, assess the durability of the response, and evaluate progression-free survival (PFS) outcomes. A median PFS exceeding 10 months could potentially underline petosemtamab’s best-in-class prospects.
Moreover, initial results regarding the efficacy of petosemtamab in treating metastatic colorectal cancer (mCRC) are anticipated in the latter half of 2025. These will include data on the drug’s performance both in combination with chemotherapy for first and second-line treatment and as monotherapy for third-line treatment and beyond.
Fein also referred to early data from the American Society of Clinical Oncology (ASCO) 2024 meeting, which showed a promising 67% response rate in first-line PD-L1+ recurrent/metastatic HNSCC among 24 evaluable patients. Further analyses are expected to reinforce the drug’s efficacy and durability. Additionally, during the ESMO Asia 2024 conference, petosemtamab demonstrated an objective response rate (ORR) of 40.4% in 47 evaluable patients in the second-line and beyond setting, which was a slight improvement from the 37.2% ORR reported at the American Association for Cancer Research (AACR) 2023 meeting.
The analyst’s reiterated Buy rating and price target reflect confidence in the ongoing development and potential of petosemtamab, as the company works towards completing its Phase 3 trials and presenting further clinical data. With the next earnings report expected on May 13, 2025, investors seeking deeper insights can access comprehensive analysis through InvestingPro, which offers exclusive access to over 10 additional ProTips and detailed financial metrics for Merus, along with a professional research report that transforms complex Wall Street data into actionable intelligence.
In other recent news, Merus N.V. announced that the U.S. Food and Drug Administration (FDA) has granted accelerated approval for BIZENGRI® (zenocutuzumab-zbco) for treating advanced pancreatic adenocarcinoma and non-small cell lung cancer (NSCLC) with neuregulin 1 (NRG1) gene fusions. This marks the first therapy approved specifically for NRG1 gene fusions in these cancer types. The approval is based on clinical trial data showing an overall response rate (ORR) of 40% for pancreatic adenocarcinoma and 33% for NSCLC. Additionally, Citi raised its price target for Merus to $97 following positive trial data for petosemtamab, reinforcing the drug’s efficacy in head and neck squamous cell carcinoma (HNSCC). BMO Capital also updated its outlook on Merus, increasing the price target to $96, emphasizing the potential of petosemtamab as a key value driver. Piper Sandler initiated coverage with an Overweight rating and an $84 price target, citing promising results for petosemtamab, particularly in combination with pembrolizumab. Wells Fargo (NYSE:WFC) set a $91 price target, noting the untapped potential of petosemtamab in metastatic colorectal cancer (mCRC). These developments reflect a positive outlook from analysts regarding Merus’s pipeline and its future potential in oncology.
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