ALAMEDA, Calif. & RAHWAY, N.J. - Exelixis, Inc. (NASDAQ: NASDAQ:EXEL) and Merck (NYSE: MRK), known as MSD outside of the United States and Canada, have announced a clinical development collaboration. The partnership will focus on evaluating the combination of Exelixis' investigational tyrosine kinase inhibitor (TKI) zanzalintinib with Merck’s anti-PD-1 therapy KEYTRUDA® (pembrolizumab) in a phase 3 trial for head and neck squamous cell carcinoma (HNSCC). Additionally, zanzalintinib will be tested with WELIREG® (belzutifan), Merck’s oral hypoxia-inducible factor-2 alpha (HIF-2α) inhibitor, in a phase 1/2 trial and two phase 3 trials for renal cell carcinoma (RCC).
The collaboration aims to address unmet clinical needs in HNSCC and RCC, with Exelixis maintaining global commercial and marketing rights to zanzalintinib. Merck will supply KEYTRUDA for the ongoing Exelixis-sponsored STELLAR-305 trial in PD-L1 positive recurrent or metastatic HNSCC. Furthermore, Merck will sponsor and fund one of the RCC phase 3 studies, while Exelixis will co-fund the phase 1/2 trial and the other phase 3 study, also supplying zanzalintinib and cabozantinib.
Head and neck cancer and renal cell carcinoma represent significant global health burdens, with high incidence rates and associated mortality. Zanzalintinib, which targets multiple cancer-related pathways, has shown encouraging results in previously treated clear cell RCC, suggesting potential benefits in combination with immunotherapy or targeted therapy.
KEYTRUDA, an anti-PD-1 therapy, enhances the body's immune system to detect and fight tumor cells and is currently involved in over 1,600 trials across various cancers. WELIREG, approved for certain VHL disease-associated tumors and advanced RCC, has shown efficacy in controlling tumor growth by inhibiting HIF-2α.
The partnership between Exelixis and Merck represents a strategic effort to improve outcomes for cancer patients by exploring new combination regimens. The collaboration is based on a shared commitment to advance clinical trials and bring innovative treatments to patients facing challenging cancer diagnoses.
This article is based on a press release statement and provides an overview of the collaboration between Exelixis and Merck in the development of potential cancer treatments.
In other recent news, Merck & Co., Inc. has been the subject of several major developments. Truist Securities reduced its price target for Merck from $143.00 to $132.00, following the acquisition of CN201 from Curon Biopharmaceutical. The acquisition led to an increase in projected research and development expenses for the third quarter of 2024, and a decrease in the earnings per share estimates. Revenue estimates for Merck's vaccine, Gardasil, were also revised due to uncertainties regarding sales in China.
Merck's Phase 3 KEYNOTE-689 trial showed a significant improvement in event-free survival for patients treated with KEYTRUDA in combination with standard radiotherapy. The company also acquired a novel bispecific antibody, CN201, for approximately $750 million, aiming to advance treatments for B-cell malignancies and autoimmune diseases. Positive Phase 2 results were reported for its inflammatory bowel disease treatment, tulisokibart, but its therapy for colorectal cancer did not meet its primary goal in a late-stage clinical trial.
Analyst firms TD Cowen and BMO Capital Markets maintained their Buy and Outperform ratings on Merck, respectively. TD Cowen highlighted Merck's favorable position among its pharmaceutical peers, noting its greater near-term earnings per share visibility and consistent news flow. BMO Capital Markets emphasized the strong performance of Merck's investigational therapy, ivonescimab. These are some of the recent developments in Merck's operations.
InvestingPro Insights
Merck's collaboration with Exelixis on cancer treatments aligns well with its strong position in the pharmaceutical industry. According to InvestingPro data, Merck boasts a substantial market capitalization of $278.14 billion, underscoring its significant presence in the healthcare sector. This financial strength provides a solid foundation for investing in innovative research and development partnerships.
An InvestingPro Tip highlights that Merck has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder returns even while investing in future growth opportunities like the Exelixis collaboration. This consistent dividend history may appeal to investors looking for stability alongside potential growth from new drug developments.
Another relevant InvestingPro Tip notes that Merck's net income is expected to grow this year. This projected financial improvement could provide additional resources to support the company's research initiatives, including the newly announced clinical trials with Exelixis.
Merck's revenue growth of 7.15% over the last twelve months, as reported by InvestingPro, suggests the company is expanding its market presence. This growth trajectory bodes well for its ability to continue investing in promising partnerships and drug development programs.
For investors interested in a deeper analysis of Merck's financial health and growth prospects, InvestingPro offers 11 additional tips that could provide valuable insights into the company's potential. These tips, along with real-time financial metrics, can help investors make more informed decisions about Merck's stock in light of its ongoing research collaborations and market position.
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