Merck Shares Jump 4.9% on Cancer Trial Win as Keytruda Patent Cliff Looms
Mondeum Capital (UK) Limited
Merck wants to show it is not just a one-drug company, and Friday’s clinical trial results gave it a boost. Shares rose 4.9% in premarket trading after a partner drug worked well in advanced lung cancer when used with Merck’s main cancer treatment. At the same time, European regulators moved closer to approving another Keytruda combination for bladder cancer. Here’s what these results could mean for Merck’s strategy after its patent expires, and whether its pipeline can make up the difference.
Sichuan Kelun-Biotech, a partner based in China, reported strong late-stage trial results for sacituzumab govitecan, a drug that targets the TROP2 protein found in many cancers. When used with Keytruda, the treatment helped patients with advanced non-small cell lung cancer live longer without their disease getting worse. These patients had not received earlier systemic therapy. The combination reduced the risk of disease progression or death by about 65% compared to Keytruda alone. The study included over 400 advanced-stage patients in China. Early results also suggest patients may live longer overall, but it is too soon to be certain. J.P. Morgan called the results very encouraging and said the data looks solid.
This good news comes at a time when Merck is facing a clear challenge. The main patents for Keytruda, one of the top-selling drugs ever, will start to expire in 2028. After that, similar competing drugs are expected to enter the market. Merck’s CEO has said the company’s plan is to protect its position by creating new drug combinations and finding more uses for its medicines, which could extend some protections to 2029. Sac-TMT is one of several antibody-drug conjugates Merck is working on with Kelun-Biotech, a partnership that began in 2022 with a $100 million investment.
European regulators also boosted Friday’s positive news by recommending approval of a Keytruda and Padcev combination for patients with muscle-invasive bladder cancer. This recommendation is based on Phase 3 data that showed better event-free survival. Padcev, which is co-developed by Pfizer and Japan’s Astellas Pharma, is already approved for this use in the United States
Featured CoursesRecent news
IMAX Stock Jumps 15% on Sale Reports: Who’s Buying?
IMAX is considering a sale, sparking speculation about buyers. Shares rose 15% Friday after the Wall Street Journal reported IMAX approached entertainment companies. The process is early and may not end in a deal. Here are the analysts’ top buyer picks and what each could gain with IMAX. Netflix is attracting the most attention as […]
Micron Stock Slips 1% After a Volatile Week for Memory Chip Stocks
Micron shares slipped 1% in early Friday trading after a week of ups and downs. The stock climbed from below $660 to a 4.1% gain on Thursday, but then fell back by Friday morning. This week, the memory chip sector was influenced by remarks from a competitor’s CEO, a narrowly avoided strike at Samsung, and […]
NVIDIA Shares Edge Up 0.8% as Earnings Beat Makes the Stock Look Even Cheaper
NVIDIA beat earnings expectations, but the stock still slipped. Shares fell 1.8% on Thursday after the report, then bounced back 0.8% in premarket trading Friday. For investors wondering about this muted response, the explanation is pretty straightforward. The stock is now cheaper than before the results, and most of Wall Street remains bullish. Here’s how […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.