Merck Stock Dips Slightly After Record-Breaking Rally on Successful Cancer Treatment Trial
Merck's stock price dipped slightly on Thursday after soaring 12.6% higher the previous day, but analysts say this retreat doesn't change the fact that the pharmaceutical giant is poised for significant growth.
The record-breaking rally was triggered by Merck and Moderna's first successful Phase 3 trial of a personalized melanoma vaccine, which pitted Keytruda against Keytruda plus intismeran in patients with high-risk melanoma. The trial met both its recurrence-free-survival and distant-metastasis-free-survival goals, with no new safety concerns.
Keytruda generated $8.4 billion in second-quarter sales, accounting for roughly half of Merck's revenue. A successful vaccine combination could stretch this blockbuster franchise even further. However, the excitement comes at a price: Merck trades 26.28% above its estimated value.