Merck and Royalty Pharma Stocks Soar on Cancer Pipeline Optimism

Merck (MRK) and Royalty Pharma (RPRX) stocks reached their all-time highs on Tuesday due to positive developments in cancer drugs. MRK's shares rose 3.8% while RPRX stock edged 1.8% higher.

The optimism was fueled by Merck's cancer pipeline, which has received two price-target increases. Wolfe Research raised its target for MRK to $180 from $155 and maintained an 'Outperform' rating. Analyst Alexandria Hammond expects Keytruda QLEX with personalized cancer vaccine Intismeran to soften the impact of Keytruda's exclusivity loss in 2029.

Royalty Pharma stands to gain 30% of future royalties from a recently approved gastroesophageal cancer therapy, Ziihera. The company will receive these payments until it collects at least 1.65 times the note's value by the end of 2033.