Peak Sales Potential of Merck's (MRK) Keytruda is Underappreciated - Analyst

Earlier today, Merck (NYSE: MRK) announced positive overall survival (OS) results from the pivotal Phase 3 KEYNOTE-355 trial evaluating KEYTRUDA, Merck’s anti-PD-1 therapy, in combination with chemotherapy for the treatment of patients with metastatic triple-negative breast cancer (mTNBC).

The final analysis shows first-line treatment with KEYTRUDA in combination with chemotherapy (nab-paclitaxel, paclitaxel or gemcitabine/carboplatin) demonstrated a statistically significant and clinically meaningful improvement in OS compared with chemotherapy alone in patients with mTNBC whose tumors expressed PD-L1 (Combined Positive Score [CPS] ≥10). No new safety signals were identified.

Commenting on the latest data readout, Cantor Fitzgerald analyst Louise Chen reiterates her belief “that the peak sales potential of Keytruda is underappreciated”. She cites 2 key updates by the company:

• TNBC in combination with chemo as neoadjuvant treatment, then continued as single agent as adjuvant treatment after surgery. According to the analyst, “this approval has the potential to change the treatment paradigm by now including an immunotherapy as part of the regimen for parents with high-risk early-stage TNBC. Keytruda is now approved in the US for 30 indications.”
• Merck’s positive data from the Phase 3 KEYNOTE-355 trial makes Keytruda the first anti-PD-1 therapy in combination with chemo to show statistically significant overall survival (OS) for this patient population. Cantor Fitzgerald analyst notes “these OS results follow a previous interim analysis that showed Keytruda in combination with chemo significantly improved progression free survival (PFS) compared with chemo alone in these patients.”

Cantor Fitzgerald maintains an “Overweight” rating on the shares and $107 Price Target.

Share of Merck (MRK) are mostly flat following the announcement.

Written by Vlad Schepkov | [email protected]

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