Keytruda, a cancer-fighting drug from pharmaceutical company Merck (NYSE:MRK), managed to deliver some impressive numbers following its recent tests. However, a solid win didn’t produce the best of outcomes for Merck stock, which was up only fractionally in Friday afternoon’s trading.
The numbers for Keytruda were looking pretty good. The anti-PD1 therapy, designed to take on a kind of bladder cancer known as urothelial carcinoma, delivered a 31% risk of death or disease recurrence after surgery. Better yet, even after just over 22 months, the study delivered a gain in disease-free survival rates, which is one of the key points most look for in such a study. Overall survival rates, however, haven’t delivered their numbers yet, which is likely part of why we’re seeing such a lukewarm response in the market.
A Mixed Bag Elsewhere
Meanwhile, news from other quarters is about as mixed as Keytruda’s news was. Merck passed on an opportunity to testify before Congress on drug prices, noting that it really wasn’t an expert in that sector. That may seem odd as Merck is a pharmaceutical company, but given that Merck’s CEO, Robert Davis, is actually a tax attorney, that’s not so out of line. Meanwhile, there are signs that Merck is increasingly turning to generative AI for drug research. Specifically, it’s turned to the Variational technology known as Enki, which works similarly to DALL-E to help find small molecules that may be useful in drug making.
What Do Analysts Say About Merck Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MRK stock based on 14 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 17.86% rally in its share price over the past year, the average MRK price target of $130.07 per share implies 7.64% upside potential.
