On Monday, BMO Capital Markets sustained its positive stance on Merus N.V. (NASDAQ: NASDAQ:MRUS), maintaining an Outperform rating with a steady price target of $95.00. The clinical-stage biotechnology company, currently valued at $3.36 billion, has demonstrated strong financial health with more cash than debt on its balance sheet.
The latest findings, revealed in an ESMO Asia abstract, show that patients treated with petosemtamab in second line or later settings (2L+ HNSCC) experienced an objective response rate (ORR) of 42.5% (20 out of 47 patients). Additionally, the median progression-free survival (mPFS) was reported at 5.1 months, with an overall survival (OS) of 12.5 months.
BMO Capital has reiterated its recommendation of Merus as a Top Pick in the biotechnology sector. The firm's endorsement reflects confidence in the drug's progress and potential market impact as it continues through the clinical trial process.
In other recent news, biotechnology company Merus N.V. has entered a strategic licensing agreement with Partner Therapeutics, Inc., focusing on the development and commercialization of zenocutuzumab, a cancer treatment drug.
The deal includes the development and commercialization of companion diagnostic tests for this treatment within the U.S, with Merus set to receive up to $130 million in milestone payments based on annual net sales. In addition, the U.S. Food and Drug Administration has extended the Prescription Drug User Fee Act goal date for the review of Merus's Biologics License Application for zenocutuzumab to February 4, 2025.
On the analyst front, H.C. Wainwright maintained its Buy rating and $85.00 price target for Merus, Goldman Sachs (NYSE:GS) initiated coverage on Merus with a Buy rating and a price target of $73.00, UBS initiated coverage on Merus with a Buy rating, and BMO Capital Markets maintained an Outperform rating for Merus. These ratings reflect the potential of Merus's lead asset, petosemtamab, in treating head and neck squamous cell carcinoma.
Finally, Merus has also initiated a Phase 3 trial for petosemtamab, a promising therapy for patients with previously untreated head and neck cancers. This study, named LiGeR-HN1, is assessing the efficacy of petosemtamab combined with pembrolizumab.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.