FDA Approves Merck's Keytruda for Ovarian Cancer Treatment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy MRK?
Source: seekingalpha
- New Indication Approval: The US FDA has approved Merck's Keytruda (pembrolizumab) for the treatment of platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal carcinoma, marking a significant expansion of the drug's application in oncology.
- Combination Therapy: Keytruda will be administered in conjunction with paclitaxel and optionally with Avastin (bevacizumab), aiming to enhance patient survival rates and progression-free survival in these cancer types.
- Clinical Trial Support: The approval is based on the progression-free and overall survival results from the KEYNOTE-B96 trial, demonstrating Keytruda's efficacy in specific cancer patients and further solidifying its market position.
- Companion Diagnostic Tool: Additionally, the FDA approved Agilent Technologies' PD-L1 IHC 22C3 pharmDx companion diagnostic to identify patients who may benefit from Keytruda therapy, enhancing the precision and personalization of treatment options.
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Analyst Views on MRK
Wall Street analysts forecast MRK stock price to rise
16 Analyst Rating
11 Buy
5 Hold
0 Sell
Moderate Buy
Current: 119.240
Low
95.00
Averages
119.53
High
139.00
Current: 119.240
Low
95.00
Averages
119.53
High
139.00
About MRK
Merck & Co., Inc. is a global health care company that delivers health solutions through its prescription medicines, including biologic therapies, vaccines and animal health products. Its Pharmaceutical segment includes human health pharmaceutical and vaccine products. The Company sells its human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers. It sells these human health vaccines primarily to physicians, wholesalers, distributors and government entities. Its Animal Health segment discovers, develops, manufactures and markets a range of veterinary pharmaceutical and vaccine products, as well as health management solutions and services, for the prevention, treatment and control of disease in all livestock and companion animal species. Its products include KEYTRUDA (pembrolizumab) injection, for intravenous use; WELIREG (belzutifan) tablets, for oral use; Ohtuvayre (ensifentrine) and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stable Dividend Growth: AbbVie recently raised its dividend by 5% to $1.73 per share, marking the 13th consecutive year of increases, while Merck pays a quarterly dividend of $0.85 per share, having raised it for 15 years, both significantly exceeding the S&P 500 average yield.
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- Patent Cliff Concerns: The analyst noted that market fears regarding Keytruda's impending patent expiration have led to Merck's undervaluation, but he believes the company has a clear path to navigate this transition effectively, similar to AbbVie's successful management of Humira's patent cliff.
- Optimistic Earnings Outlook: Shin projects Merck's trough earnings at approximately $11 per share, exceeding the Street's consensus of around $10, with historical data showing that investing at points of trough clarity often presents significant opportunities, as evidenced by AbbVie's valuation multiple expansion from 11x to 15x.
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See More
