Deutsche Bank ups Merck to Buy, raises target to $150; FDA expands Keytruda ovarian use
Deutsche Bank upgraded Merck to Buy, raising its price target to $150 from $115 and citing a clear growth path beyond Keytruda’s patent cliff. FDA approved Keytruda and Keytruda QLEX with paclitaxel ± bevacizumab for PD-L1+ platinum-resistant epithelial ovarian, fallopian tube or peritoneal carcinoma after one or two prior treatments.
1. Deutsche Bank Upgrade and Price Target Raise
On February 13, Deutsche Bank upgraded Merck to Buy from Hold, boosting its price target by 30% to $150 from $115. The firm cited Merck’s ability to navigate Keytruda’s impending patent cliff through a pipeline of non–Keytruda growth drivers and a trough earnings formation.
2. FDA Approves New Ovarian Cancer Indication
On February 11, Merck received FDA approval for Keytruda and Keytruda QLEX combined with paclitaxel, with or without bevacizumab, in adults with PD-L1+ platinum-resistant epithelial ovarian, fallopian tube or primary peritoneal carcinoma after one or two prior systemic regimens.
3. Keytruda QLEX Data and Differentiation
Merck noted that Keytruda QLEX’s effectiveness is supported by controlled studies with Keytruda and the MK-3475A-D77 trial, which compared pharmacokinetic, efficacy and safety profiles. This marks the first PD-1 inhibitor approved for the specified platinum-resistant ovarian cancers with PD-L1+ tumors.