SoFi CEO enters prepaid forward contract on 1.5 million shares
On Thursday, Piper Sandler initiated coverage on Merus N.V. (NASDAQ:MRUS), a $2.8 billion market cap biotech company, with an Overweight rating and a price target of $84.00. According to InvestingPro data, the stock is currently trading near its 52-week low of $37.77, with analyst targets ranging from $67 to $109. The firm’s optimism is primarily based on the potential of Merus’s drug candidate petosemtamab, which is being developed to treat head and neck squamous cell carcinoma (HNSCC). The company maintains a strong financial position, with InvestingPro analysis showing more cash than debt on its balance sheet and a healthy current ratio of 8.32.
Piper Sandler’s analysis indicates that petosemtamab, particularly in combination with pembrolizumab, has shown promising results. The firm anticipates that forthcoming Phase II data in 2025 will further validate the efficacy of the drug, leading up to the Phase III LiGeR-HN1 study.
The coverage initiation follows positive findings from the ASCO 2024 disclosure, which suggested that petosemtamab could achieve favorable durability endpoints compared to pembrolizumab as a single agent. Piper Sandler expects that forthcoming data on duration of response (DOR), progression-free survival (PFS), and landmark overall survival (OS) will bolster confidence in the confirmatory OS endpoint of the LiGeR-HN1 study.
Piper Sandler’s analysis forecasts that petosemtamab could generate approximately $3 billion in risk-adjusted revenues by 2035, assuming it is successfully commercialized for the treatment of HNSCC. This revenue potential is a key factor in the firm’s positive outlook for Merus N.V. stock. While the company currently shows weak gross profit margins, analysts anticipate sales growth in the current year. For deeper insights into Merus’s financial health and growth prospects, including 8 additional ProTips and comprehensive valuation metrics, check out the full research report on InvestingPro.
In other recent news, Merus N.V. has been receiving significant attention from analysts following a series of developments. Wells Fargo (NYSE:WFC) initiated coverage on Merus with an Overweight rating and set a price target of $91, highlighting the potential of Merus’ product candidate, peto, in metastatic colorectal cancer (mCRC). Meanwhile, Citi maintained a Buy rating on Merus and increased the price target to $97 following the presentation of positive trial data on petosemtamab monotherapy in recurrent/metastatic Head and Neck Squamous Cell Carcinoma.
Adding to the positive news, the U.S. Food and Drug Administration (FDA) has approved BIZENGRI® (zenocutuzumab-zbco) for the treatment of adult patients with pancreatic adenocarcinoma and non-small cell lung cancer that harbor a neuregulin 1 (NRG1) gene fusion. This marks the first approval for a therapy specifically targeting NRG1 gene fusions in these cancer types.
Furthermore, Guggenheim maintained a Buy rating on Merus but lowered the stock’s price target to $109 following Merus’s announcement of an exclusive licensing agreement with Partner Therapeutics, Inc. for the commercialization of zenocutuzumab in the United States. Lastly, BMO Capital Markets sustained its positive stance on Merus, maintaining an Outperform rating with a steady price target of $95.00, following the publication of promising data from a Phase 2 clinical trial for petosemtamab.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.