Merus price target raised to $70 from $58 at Citi

Citi raised the firm’s price target on Merus to $70 from $58 and keeps a Buy rating on the shares. The company’s first-line head and neck squamous cell carcinoma, or HNSCC, data looked even better than the abstract with stronger results, including 67% overall response rate and in more patients – 24 vs. 10, the analyst tells investors in a research note. Given the continued very strong data, the recently announced follow-on offering of $300M should remove the financing overhang for additional capital required to complete both first-line and second-line HNSCC pivotals that were pressuring shares earlier today, the firm added.