In a report released on October 24, Evan Seigerman from BMO Capital maintained a Hold rating on Merus, with a price target of $97.00.
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Evan Seigerman has given his Hold rating due to a combination of factors related to the recent data on Merus’s petosemtamab in treating metastatic colorectal cancer (mCRC). The updated results show promising efficacy in first-line (1L) and second-line (2L) settings, with overall response rates (ORRs) of 80% and 62%, respectively. However, the small sample sizes and the mix of confirmed and unconfirmed responses make the data less straightforward to interpret.
Additionally, while the safety profile of petosemtamab appears manageable, with no new significant safety concerns, the limited efficacy observed in third-line (3L) treatment and the discontinuation of one patient due to a severe side effect add caution. Despite the positive early results, these uncertainties contribute to a cautious outlook. The expectation that the Genmab-Merus transaction will close as planned, realizing a specific share value, further supports the Hold rating, as the current data does not significantly alter the anticipated outcome of the deal.