Merus reveals mechanism of action for cancer antibody petosemtamab

UTRECHT, The Netherlands and CAMBRIDGE, Mass. - Merus N.V. (NASDAQ:MRUS), a clinical-stage oncology company with a market capitalization of $2.8 billion, has announced the publication detailing the mechanism of action for its investigational cancer therapy, petosemtamab, in the peer-reviewed scientific journal Cancers. The company maintains a strong financial position with more cash than debt and a healthy current ratio of 5.86x, according to InvestingPro data.

Petosemtamab is a bispecific antibody targeting both the Epidermal Growth Factor Receptor (EGFR) and Leucine-Rich G (LGR5), proteins often implicated in the progression of colorectal cancer (CRC) and other solid tumors. The publication, authored by Merus’s Senior Vice President and Chief Scientific Officer Cecile Geuijen, Ph.D., explains that petosemtamab operates through three mechanisms: blocking EGFR ligands, promoting EGFR receptor degradation in LGR5+ cells, and activating the innate immune system through antibody-dependent cellular phagocytosis (ADCP) and enhanced antibody-dependent cellular cytotoxicity (ADCC).

The company has previously reported phase 2 interim clinical data showing significant activity of petosemtamab in treating recurrent/metastatic head and neck squamous cell carcinoma (r/m HNSCC), both as a monotherapy and in combination with pembrolizumab. These findings were released last year on May 28, 2024, and December 7, 2024, respectively.

Currently, phase 3 trials of petosemtamab are underway for both first-line (1L) programmed PD-L1+ (CPS≥1) and second/third-line (2/3L) r/m HNSCC, with expectations to be substantially enrolled by the end of the year. Additionally, a phase 2 trial is ongoing, evaluating the antibody in combination with standard chemotherapy for metastatic colon cancer (mCRC) and as a monotherapy in heavily pretreated mCRC, with initial clinical data anticipated in the second half of 2025.

Merus’s therapeutic approach involves the development of Multiclonics®, which are full-length human bispecific and trispecific antibody therapeutics. According to the company, these antibodies share several features with conventional human monoclonal antibodies, such as a long half-life and low immunogenicity.

Head and neck squamous cell carcinoma represents a significant global health challenge, with over 930,000 new cases and more than 465,000 deaths reported in 2020. The incidence of HNSCC is expected to rise by 30% by 2030. The development of new treatments like petosemtamab is critical in addressing the unmet medical needs of this patient population. While Merus reported impressive revenue growth of 43% in the last twelve months, analysts on InvestingPro maintain a strong buy consensus with a significant upside potential. The platform offers 8 additional key insights about MRUS’s financial health and market position in its comprehensive Pro Research Report.

This news is based on a press release statement from Merus N.V. and does not involve any endorsement of the claims. The company’s forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. InvestingPro analysis indicates the company maintains a Fair financial health score, with particularly strong momentum metrics, though it’s worth noting that analysts do not anticipate profitability this year. For detailed financial analysis and expert insights on MRUS and 1,400+ other stocks, consider accessing the full Pro Research Report.

In other recent news, Merus N.V. has caught the attention of several analysts, with significant developments in its clinical trials. Stifel reiterated its Buy rating for Merus, setting a price target of $93, citing the promising clinical data for its oncology drug, petosemtamab. This drug has received Breakthrough Therapy Designation from the FDA, highlighting its potential in treating head and neck squamous cell carcinoma (HNSCC). Similarly, H.C. Wainwright maintained a Buy rating with an $85 price target, emphasizing the ongoing Phase 3 trials for petosemtamab and the anticipated updates on its efficacy and progression-free survival in 2025.

BMO Capital Markets also adjusted its outlook on Merus, raising the price target to $96 while maintaining an Outperform rating. This adjustment reflects the narrowed timelines for clinical data releases and the anticipated updates for petosemtamab in both HNSCC and colorectal cancer trials. BMO highlighted the drug as a key value driver for the company going into 2025, with its differentiated profile offering a strong competitive edge. Analysts from these firms express confidence in Merus’s strategic positioning and its potential to achieve significant milestones in the coming years.

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