In a report released yesterday, Daina Graybosch from Leerink Partners maintained a Buy rating on Merck & Company (MRK – Research Report), with a price target of $113.00.
Daina Graybosch’s rating is based on the promising results from Merck’s Phase 3 ZENITH trial, which demonstrated significant benefits of sotatercept in treating severe pulmonary arterial hypertension (PAH). The trial showed a substantial reduction in the risk of hospitalization, lung transplantation, or death, highlighting sotatercept’s potential as a standard of care for patients with severe PAH. This strong efficacy is expected to drive high demand for the therapy, despite existing market access challenges and concerns about toxicity.
Moreover, the trial’s findings suggest that sotatercept could accelerate its uptake among patients, although physician caution regarding bleeding risks may limit its use in lower-risk patients. While the trial’s interim results did not achieve statistical significance for overall survival, the positive trends in lung transplantation-free survival are encouraging. Further real-world data and additional trial outcomes are anticipated to provide a clearer understanding of sotatercept’s risk-benefit profile, potentially reinforcing its adoption in the treatment landscape.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $115.00 price target.
Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is neutral on the stock.