Winrevair label represents ‘most bullish scenario’ for Merck, says BofA

BofA notes that Merck shares have been volatile as investors have contemplated various scenarios regarding the approval of sotatercept and its language, including “a lot of investor angst” given the risk for the FDA to issue either black box warnings, REMS, and/or monitoring requirement. However, sotatercept’s approval in PAH with the brand name Winrevair “comes with a squeaky-clean label,” without WHO functional class restriction or a need to be on background therapy, no black box and no REMS, which represents “the most bullish scenario,” the analyst tells investors. The firm, which anticipates Merck shares to react favorably, maintains a Buy rating and $135 price target and sees upside to sotatercept’s commercial outlook.