Leerink Partners analyst Daina Graybosch maintained a Buy rating on Merck & Company (MRK – Research Report) on March 28 and set a price target of $113.00.
Daina Graybosch’s rating is based on the promising developments in Merck & Company’s subcutaneous (SC) formulation of pembrolizumab, which is expected to protect revenue streams from potential price caps and biosimilar competition. The data presented at the European Lung Cancer Congress (ELCC) supports the likelihood of FDA approval for this SC formulation, with a PDUFA date set for September 23, 2025. The rapid adoption of the SC formulation is anticipated due to Merck’s strategic focus on commercial execution and pricing strategies aimed at encouraging adoption, as well as the formulation’s significant reduction in patient treatment room and healthcare provider time compared to the intravenous (IV) version.
Daina Graybosch also highlights the potential for future enhancements, such as the possibility of autoinjector delivery, which could further increase accessibility for patients and physicians. Despite these positive aspects, there remains some uncertainty regarding the long-term conversion of SC pembrolizumab in the face of biosimilar IV competition and potential margin impacts due to pricing strategies. Additionally, there are ongoing intellectual property disputes with Halozyme that could affect the SC formulation’s market dynamics.
According to TipRanks, Graybosch is an analyst with an average return of -16.5% and a 30.66% success rate. Graybosch covers the Healthcare sector, focusing on stocks such as Merck & Company, Arcus Biosciences, and Fate Therapeutics.
In another report released on March 25, Citi also reiterated a Buy rating on the stock with a $115.00 price target.