UBS Reiterates Buy Rating#
UBS has reaffirmed a Buy rating for Merck & Co. (NYSE: MRK) stock, currently priced at $118.44, with a price target of $145.00. Over the past year, Merck's stock has shown impressive growth, delivering a 58% return and trading close to its 52-week high of $125.14.
Strong Drug Pipeline#
The firm emphasized Merck's robust pipeline, which includes six major drugs expected to be released in the coming years. This pipeline is crucial for Merck as it prepares for the potential loss of exclusivity on some products in 2029. Recently, Merck filed a new drug application for a treatment targeting small cell lung cancer in collaboration with Daiichi.
Potential Blockbuster Drug#
UBS is particularly optimistic about a drug named SacTMT, which they believe could generate peak sales of $5 billion across various tumor types. Currently, there are 17 Phase III studies in progress for this drug, which UBS sees as a significant growth driver for Merck.
Recent FDA Developments#
In addition to its drug pipeline, Merck has received priority review from the FDA for two supplemental applications for its well-known drug KEYTRUDA, in combination with Padcev, aimed at treating muscle-invasive bladder cancer. The FDA has set a target action date for these applications in mid-August. Furthermore, Merck has started a pivotal Phase 2b/3 trial for another treatment aimed at age-related macular degeneration, marking a significant milestone in its late-phase development efforts.
Analyst Ratings#
In recent updates, Guggenheim has also reiterated a Buy rating for Merck with a price target of $140, while Cantor Fitzgerald has maintained a Neutral rating with a $120 target. Jefferies has increased its price target to $138 after positive results from a recent trial. These ratings reflect confidence in Merck's ongoing advancements in its pharmaceutical pipeline.