Merck attracted analyst attention at the American Society of Clinical Oncology meeting in Chicago, where its ongoing efforts to build a post-Keytruda oncology portfolio were highlighted on June 2. While emerging biotechs like Revolution Medicines and Summit Therapeutics received significant media coverage during the event, analysts identified Merck as a potential key winner due to progress with its TROP2-directed therapies.
BMO Capital Markets said, “[The] ASCO event highlights the developmental progress Merck has made in oncology with efforts finally starting to pay off.” Data from the Phase 3 OptiTROP-Lung05 trial presented at ASCO showed an overall survival rate of 80.4% among Chinese patients with first-line non-small cell lung cancer treated with sacituzumab tirumotecan (sac-TMT), an antibody-drug conjugate targeting TROP2.
Despite these results, Merck’s shares declined amid interest in new PD-1/VEGF treatments showcased by other companies. BMO wrote, “While we think PD-(L)1/VEGF (specifically BNTX/BMY’s pumitamig) development has shown meaningful mechanistic validation this weekend, we come away feeling as if Merck’s TROP2 and potential for combinations with its own PD-1/VEGF could offer the company the firepower and trial flexibility to not only be a leader in NSCLC but other solid tumors with more readouts imminent.”
Analysts noted that although Merck is trailing competitors such as Summit and Akeso in the PD-1/VEGF race—its candidate MK-2010 is still early-stage—the company has demonstrated an ability to adapt quickly. Guggenheim analysts wrote, “While behind, we believe MRK has a history of learning from competitors and moving quickly and aggressively with programs where they see a meaningful opportunity, and they can leverage their combination of assets (MK-2010, sac-TMT, and more) to catch up.”
Looking ahead, Merck plans multiple clinical readouts for sac-TMT across several cancer types over the next three years. According to Guggenheim analysts, data from 16 Phase 3 trials will be released during this period. The company also aims to expand into hematology following its $6.7 billion acquisition of Terns Pharmaceuticals earlier this year.
Guggenheim concluded: “Overall…we believe Merck continues to do a commendable job in working to diversify away from Keytruda (both in and outside of oncology), highlighted by ~60 ongoing Phase 3 studies across their late-stage oncology pipeline and registrational readouts expected from 10 different assets in the next four years.”
