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Merus’s HNSCC Program Potential Drives Buy Rating Amid Market Opportunities and Challenges

Merus’s HNSCC Program Potential Drives Buy Rating Amid Market Opportunities and Challenges

Andrew Berens, an analyst from Leerink Partners, maintained the Buy rating on Merus (MRUSResearch Report). The associated price target remains the same with $88.00.

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Andrew Berens has given his Buy rating due to a combination of factors, primarily focusing on the potential of Merus’s head and neck squamous cell carcinoma (HNSCC) program. Berens anticipates that Merus will reaffirm its best-in-class profile, particularly in terms of efficacy, which could validate the significant market opportunity in HNSCC. The upcoming data presentation at ASCO is expected to highlight key metrics, such as the 12-month overall survival rate, which management has emphasized as a critical measure.
Berens also notes that while there are uncertainties in clinical outcomes and comparisons with competitors like BCAX, the durability metrics and efficacy in HPV+ patients are crucial considerations. Despite potential challenges, such as a lower complete response rate compared to BCAX, Berens believes that Merus’s stock has the potential to surpass previous 52-week highs. This optimism is tempered by the broader sector’s macroeconomic complexities, but the fundamental strengths of Merus’s program support the Buy rating.

In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $67.00 price target.

MRUS’s price has also changed slightly for the past six months – from $42.930 to $44.010, which is a 2.52% increase.

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