Promising Potential of Merus’s Petosemtamab: A Buy Rating Backed by Impressive Efficacy and Safety

H.C. Wainwright analyst Andres Y. Maldonado maintained a Buy rating on Merus (MRUS – Research Report) today and set a price target of $85.00.

Andres Y. Maldonado has given his Buy rating due to a combination of factors that highlight the promising potential of Merus’s petosemtamab. The recent data update on petosemtamab, in combination with pembrolizumab for treating recurrent/metastatic HNSCC, has shown impressive efficacy benchmarks. The confirmed overall response rate of 63% and a 12-month overall survival rate of 79% significantly exceed expectations, indicating strong potential for regulatory success and market uptake.
Moreover, petosemtamab’s unique mechanism as a bispecific antibody targeting EGFR and LGR5 provides a clear differentiation from existing treatments, offering clinically meaningful activity with manageable toxicity. The safety profile is favorable, with no severe adverse events, making it suitable for a broader patient population. The ongoing enrollment in global trials and the asset’s standalone potential further support the positive outlook, reinforced by regulatory enthusiasm and Breakthrough Therapy Designations.

Y. Maldonado covers the Healthcare sector, focusing on stocks such as ImmunityBio, Day One Biopharmaceuticals, and Erasca. According to TipRanks, Y. Maldonado has an average return of -3.6% and a 31.13% success rate on recommended stocks.

In another report released today, Needham also maintained a Buy rating on the stock with a $88.00 price target.