On Friday, BMO Capital Markets sustained its optimistic outlook on Merus N.V. (NASDAQ: NASDAQ:MRUS), adjusting its price target upward to $95 from the previous $91, while retaining an Outperform rating on the stock.
The biotechnology company, which is focused on developing innovative cancer therapies, has recently made significant strides in its clinical programs.
The company has successfully launched the Phase 3 LiGeR-HN2 trial for petosemtamab, a treatment targeting head and neck squamous cell carcinoma (HNSCC), in patients who are in their second or third line of treatment. Merus also anticipates presenting further data from the Phase 1/2 trial's dose optimization cohort in the fourth quarter of this year.
Furthermore, plans are underway to commence the Phase 3 LiGeR-HN1 trial, which will evaluate petosemtamab in combination with pembrolizumab, by the end of the year. This strategic move aims to expand the potential treatment applications of Merus's therapy.
In addition to the clinical developments, Merus has also updated its financial projections, extending its expected cash runway into 2028, which marks an improvement from the previous projection into 2027.
Meanwhile, Stifel has adjusted its price target for Merus shares to $99.00, influenced by encouraging phase 1b data for the drug petosemtamab. Stifel's analysis suggests a market potential of approximately $3 billion, possibly reaching $4-5 billion considering extended treatment durations.
Concurrently, BofA Securities revised its price target for Merus to $76, still maintaining a Buy rating, following successful fundraising efforts and promising results from a study of petosemtamab. Truist Securities also increased its price target for Merus to $88, keeping a Buy rating, after the presentation of full data at the American Society of Clinical Oncology (ASCO) meeting.
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