Analyst Boosts Merus Price Target As AACR Updates Meaningfully De-Risk Its Head & Cancer Therapy

Needham raised the price target on Merus N.V. MRUS from $33 to $46 and maintained Buy rating.
The analyst says the increased price target reflects its confidence in petosemtamab (peto) following AACR updates.
In a Monday update at the AACR presentation, Peto showed a 37% overall response rate (ORR) in 43 evaluable patients.
Six months median duration of response as of Feb 1, 2023, data cutoff date.
Related Content: Merus' Petosemtamab Abstract Hits Upside Scenario For Overall Response Rate, Duration Of Response: Analyst.
Peto continues to look competitive, said the analyst, with a Median overall survival was 11.5 months in previously treated HNSCC patients.
Management is exploring multiple possible development paths for Peto involving a randomized trial in 1L or 2L+, which could support accelerated approval on an ORR endpoint.
At the investor call, management underscored the importance of ensuring Peto is best positioned for success. It noted that the single arm Peto + pembro study in 1L will inform the next steps.
Price Action: MRUS shares are down 14.43% at $20.49 on the last check Tuesday.

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