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Monday, Merck (NSE:PROR) & Co Inc (NYSE:MRK) stock retained its Buy rating and $105.00 price target from UBS, as the company anticipates results from its Phase 3 CORALreef program. The program includes studies on Lipids, AddOn, and HeFH, focusing on enlicitide decanoate, a potential first-in-class and best-in-class oral PCSK9 inhibitor.
UBS’s outlook remains optimistic about the upcoming data, suggesting that it could mirror the LDL-C reduction levels of approximately 60% seen in injectable biologics, as indicated by previous Phase 2 study results. The success of these outcomes is considered crucial for Merck to shift market sentiment in its favor. The studies encompass both primary and secondary prevention patients, which could lead to a wide-ranging label upon the product’s launch.
The firm estimates that the primary prevention market could cater to around 48 million patients, while the secondary prevention market might serve approximately 7 million patients. UBS projects a base case of $5.0 billion in peak sales for enlicitide, with a 60% probability of success factored into this forecast.
The analyst from UBS highlighted the potential of the upcoming data releases, noting that positive results could significantly influence Merck’s market position. The detailed expectations across various scenarios have been outlined in UBS’s report, anticipating that the forthcoming months could be pivotal for Merck’s PCSK9 inhibitor program. With a market capitalization of $190.8 billion and an attractive 4.26% dividend yield, Merck remains a significant player in the pharmaceutical sector. For comprehensive analysis and additional insights, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Merck & Co., Inc. reported its Q1 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $2.22 compared to the forecasted $2.14. The company also exceeded revenue forecasts, reporting $15.5 billion in revenue against a projected $15.3 billion. Despite these positive results, Merck is facing challenges, particularly with declining Gardasil sales in China, which reduced overall revenues by $1.1 billion. In response to these developments, Citi analysts downgraded Merck’s stock from Buy to Neutral, citing growth challenges and a slower-than-expected pipeline progression. They also reduced the price target from $115 to $84, expressing concerns about the upcoming loss of exclusivity for Keytruda in 2028. Meanwhile, Guggenheim Securities lowered Merck’s price target to $108 but maintained a Buy rating, highlighting strong sales of Winrevair and an overall positive earnings report. Additionally, Merck announced promising results from its Phase 3 KEYNOTE-B96 trial for Keytruda in treating platinum-resistant recurrent ovarian cancer. This trial demonstrated statistically significant improvements in progression-free survival and overall survival for patients with PD-L1-expressing tumors. These developments reflect Merck’s ongoing efforts to advance its oncology pipeline and address market challenges.
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