Merck Stock Surges 61% on Positive Pipeline Readouts

Merck's stock price has surged by 61% over the past year to $144, driven by positive pipeline readouts. The company's share price peaked at $155 in late August after a Phase 3 trial for its melanoma treatment met its primary endpoint.

Scotiabank raised its target price for Merck stock to $180 on September 29, which is 25% above the current close. However, TIKR's mid-case model values Merck at $166 by December 2030, implying a 15% total return or 3% annualized over 4.2 years.

Merck expects only modest top-line growth in 2027 due to generic competition and slowing Keytruda sales. Despite this, the company has delivered several positive pipeline results, including earlier-than-expected readouts for its ulcerative colitis treatment.