Guggenheim Boosts Merck Price Target to $170 on Cancer Drug Hopes
Guggenheim, a well-known investment firm, has raised its price target for Merck stock to $170 from $146. This decision comes after positive top-line data was released by Merck and partner Moderna Inc. regarding the cancer drug intismeran autogene in the adjuvant treatment of stage IIB-IV melanoma patients.
The firm's market model suggests approximately $7 billion in probability-adjusted sales potential for this drug by 2035, with profits to be split equally between the two companies. Merck shares have risen 11.2% since the intismeran top-line news was released, outperforming the S&P 500 which has gained only 0.4%.
Guggenheim also highlighted the potential for sacituzumab tirumotecan, estimating it can generate around $7 billion in sales by 2035. The firm expects important data regarding this asset at the European Society of Medical Oncology Meeting in October, including potentially detailed results from the Phase 3 OptiTROP-Lung06 trial conducted by Merck's partner Kelun Biotech in China.