Promising Outlook for Merus’ Petosemtamab: Buy Rating Reaffirmed Amidst Encouraging Clinical Progress

H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on Merus (MRUS – Research Report) today and set a price target of $85.00.

Andrew Fein has given his Buy rating due to a combination of factors related to the clinical progress of petosemtamab, a promising therapy being developed by Merus. The ongoing Phase 3 trials in head and neck squamous cell carcinoma (HNSCC) and metastatic colorectal cancer (mCRC) are showing encouraging signs, with significant milestones expected by 2025. The potential of petosemtamab to exceed a median progression-free survival of 10 months in HNSCC could establish it as a best-in-class therapy.
Furthermore, the success of similar therapies, such as amivantamab, in mCRC provides a de-risked pathway for petosemtamab. The positive outcomes from amivantamab’s trials, particularly in combination with chemotherapy, reinforce the viability of petosemtamab’s approach. The regulatory framework established by amivantamab’s trials also offers a clear path for petosemtamab, enhancing its potential for accelerated approval. These factors collectively support Fein’s optimistic outlook and the reiterated Buy rating with a price target of $85.

In another report released on February 28, Truist Financial also reiterated a Buy rating on the stock with a $88.00 price target.