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Merus reports promising phase 1/2 trial results for head and neck cancer therapy

EditorAhmed Abdulazez Abdulkadir
Published 05/28/2024, 02:03 PM
© Reuters.
MRUS
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UTRECHT, The Netherlands and CAMBRIDGE, Mass. - Merus N.V. (NASDAQ:MRUS), a clinical-stage oncology company, has announced interim clinical data from its ongoing phase 1/2 trial, revealing a 67% response rate in patients with head and neck cancer treated with the combination of its bispecific antibody petosemtamab and pembrolizumab.

The data, as of March 6, 2024, includes results from 24 evaluable patients and will be presented at the American Society of Clinical Oncology (ASCO) Annual Meeting on June 3, 2024.

The company's president and CEO, Dr. Bill Lundberg, expressed optimism regarding the combination's clinical activity and safety profile, which was observed across various tumor PD-L1 expression levels and HPV status. Dr. Jerome Fayette, who will be presenting the data at ASCO, also shared a positive outlook on the potential of this treatment to set a new standard of care for first-line treatment of head and neck cancer.

During the trial, 45 patients were treated, and 32 remained on treatment at the time of the data cutoff. The company observed one confirmed complete response and 12 confirmed partial responses among the 24 patients in the efficacy population. The treatment was generally well-tolerated, with most adverse events being Grade 1 or 2 in severity, and no significant overlapping toxicities with pembrolizumab were noted.

Merus plans to initiate a phase 3 registration trial by the end of 2024, aiming to further investigate petosemtamab in combination with pembrolizumab for the first-line treatment of PD-L1 expressing head and neck cancer, regardless of HPV status.

Merus, recognized for developing full-length multispecific antibodies, aims to address the unmet needs in the treatment of deadly diseases like head and neck squamous cell carcinoma. The information presented here is based on a press release statement from the company.

InvestingPro Insights

Merus N.V. (NASDAQ:MRUS) has been in the spotlight with its promising clinical data, but what does the financial picture tell us about the company's performance and market position? According to InvestingPro data, Merus has a market capitalization of $3.52 billion, which reflects investor confidence in the company's growth potential. The company's Price to Book ratio stands at 10.07 as of the last twelve months leading up to Q1 2024, signaling a premium valuation that investors are willing to pay for its assets relative to the book value.

Despite the company's significant research and development efforts, the financial metrics highlight some challenges. The company's revenue growth has seen a decline of 11.73% over the last twelve months as of Q1 2024, and its gross profit margin has been negative, sitting at -276.6% in the same period. This underlines the company's current stage in the clinical development cycle, where investment in research often precedes revenue generation.

However, Merus has demonstrated impressive stock performance with a substantial 1-week price total return of 37.21%, which could be a response to positive clinical trial results and future growth expectations. Investors interested in the company's future prospects should note that analysts have revised their earnings upwards for the upcoming period, as per one of the InvestingPro Tips, indicating potential optimism in its financial outlook.

For readers looking to delve deeper into Merus's financial data and future projections, more InvestingPro Tips can be found at https://www.investing.com/pro/MRUS, including insights on the company's cash position, sales growth forecasts, and profitability expectations. There are 19 additional InvestingPro Tips available for Merus, offering a comprehensive analysis for informed decision-making. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

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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