Tuesday, BMO Capital Markets raised the price target on shares of Merus N.V. (NASDAQ:MRUS) to $91 from the previous target of $84, while maintaining an Outperform rating. The revision follows the company's presentations at the American Society of Clinical Oncology (ASCO) meeting, which bolstered the firm's confidence in Merus's clinical programs.
Merus's recent presentation detailed the use of petosemtamab in combination with pembrolizumab for the front-line treatment of patients with squamous-cell head and neck cancer (HNSCC). BMO Capital's increased price target reflects the enhanced optimism after viewing patient-level data on response and durability of the treatment, which were consistent with expectations.
The firm also adjusted the probability of success for petosemtamab in treating HNSCC to 75%, a notable increase from the former 65%. This change is based on the positive data presented and is now incorporated into their financial model for Merus.
Additionally, the analyst's updated outlook takes into account Merus's 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 anticipated impact on the company's research and development efforts.
The price target adjustment by BMO Capital Markets indicates a more bullish stance on Merus's stock, particularly in light of the company's progress and potential in developing treatments for HNSCC. Investors and stakeholders in the biopharmaceutical sector will be watching closely as Merus continues to advance its clinical pipeline.
In other recent news, Merus N.V. 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 plans to further investigate MCLA-129 in combination with chemotherapy. The company also revealed interest in partnerships to support the continued development of this therapeutic candidate.
TD Cowen maintained a Buy rating on Merus, based on the promising data from the recent trial. H.C. 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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