BMO Capital Markets raised its price target on shares of Merus NV (NASDAQ:MRUS) to $91 from the previous target of $84 on Tuesday, maintaining an Outperform rating. The review follows the company’s presentations at the American Society of Clinical Oncology (ASCO) meeting, which strengthened the company’s confidence in Merus’ clinical programs.
Merus’ recent presentation illustrated the use of petosemtamab in combination with pembrolizumab for the first-line treatment of patients with head and neck squamous cell cancer (HNSCC). BMO Capital’s price target increase reflects increased optimism after seeing patient-level response and treatment duration data, which were in line with expectations.
The company also revised petosemtamab’s chance of success in treating HNSCC to 75%, a notable increase from the previous 65%. This change is based on the positive data presented and is now incorporated into the Merus financial model.
Additionally, the analyst’s updated outlook takes into account Merus’ recent capital raise, which is expected to support the advancement of its clinical programs. The financial model has been revised to reflect the new funding and its expected impact on the company’s research and development efforts.
BMO Capital Markets’ price target adjustment indicates a more bullish stance on Merus stock, particularly given the company’s progress and potential in developing therapies for HNSCC. Investors and biopharmaceutical industry stakeholders will closely monitor the progress of Merus’ clinical pipeline.
In other recent news, Merus NV presented promising data on its investigational drug MCLA-129, a treatment for non-small cell lung cancer (NSCLC), at the American Society of Clinical Oncology annual meeting. The study showed notable response rates and the drug was generally well tolerated. Merus intends to further study MCLA-129 in combination with chemotherapy. The company has also revealed an interest in forming partnerships to support the continued development of this therapeutic candidate.
TD Cowen maintained a Buy rating on Merus, based on promising recent trial data. HC Wainwright and BofA Securities also increased their price targets for Merus shares, reflecting optimism about the company’s potential.
These are recent developments that highlight the company’s progress in the field of oncology.
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