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FDA extends review date for Merus' cancer drug Zeno

Published 05/11/2024, 21:36
MRUS
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In a recent development, Merus N.V. (NASDAQ:MRUS), a biotechnology company specializing in pharmaceutical preparations, announced that the U.S. Food and Drug Administration (FDA) has postponed the review completion date for its cancer drug, zenocutuzumab (Zeno). The Prescription Drug User Fee Act (PDUFA) goal date is now set for February 4, 2025.

This extension follows Merus' submission of a biologics license application for Zeno, a therapeutic agent designed to treat cancer. The FDA's decision to extend the goal date allows additional time for a thorough evaluation of the application. The company, headquartered in Utrecht, The Netherlands, is awaiting the agency's decision, which will be a significant milestone for the drug's commercial availability in the United States.

Merus N.V., which trades on the Nasdaq Global Market under the ticker MRUS, has not disclosed specific reasons for the FDA's extension. The delay is procedural, with no further details provided regarding the nature of the FDA’s ongoing review.

In other recent news, Merus N.V. has been at the forefront of several noteworthy developments. The U.S. Food and Drug Administration (FDA) extended the Prescription Drug User Fee Act (PDUFA) goal date for the review of Merus's Biologics License Application for zenocutuzumab, a treatment for NRG1+ cancer. This extension allows the FDA more time to review additional information provided by the company.

In the field of oncology, Merus has made significant progress, especially in the development of treatments for head and neck cancer. Analyst firms like UBS and BMO Capital Markets have shown confidence in Merus's lead therapeutic candidate, petosemtamab. UBS initiated coverage on Merus with a Buy rating, projecting petosemtamab's risk-adjusted peak sales at $880 million. Similarly, BMO Capital Markets maintained an Outperform rating for Merus, indicating confidence in the company's prospects.

Merus has also initiated a phase 3 clinical trial for petosemtamab with the first patient dosed in the LiGeR-HN1 trial. This trial is evaluating the efficacy of petosemtamab in combination with pembrolizumab for the treatment of patients with previously untreated head and neck cancers. Alongside these developments, Merus announced the appointment of Dr. Fabian Zohren as its new Chief Medical (TASE:PMCN) Officer.

InvestingPro Insights

As Merus N.V. (NASDAQ:MRUS) awaits the FDA's decision on zenocutuzumab, InvestingPro data provides additional context for investors. Despite the company's current unprofitability, with a negative gross profit margin of -291.46% in the last twelve months, Merus has shown impressive stock performance. The company's year-to-date price total return stands at 86.29%, with a one-year return of 105.91%, indicating strong investor confidence in its potential.

InvestingPro Tips highlight that Merus holds more cash than debt on its balance sheet, which could provide financial flexibility during the extended FDA review period. Additionally, analysts anticipate sales growth in the current year, suggesting potential revenue improvements despite the delay in the drug approval process.

For investors seeking a deeper understanding of Merus's financial health and market position, InvestingPro offers 11 additional tips, providing a comprehensive analysis to inform investment decisions in this dynamic biotech company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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