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Merck (MRK) Begins Pivotal Studies on Four Cancer Candidates

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Merck (MRK - Free Report) announced the initiation of pivotal phase III studies on four of its cancer candidates, most of which it added to its pipeline from the acquisitions and collaboration deals made in 2022. Patients are now actively enrolling in these studies.

The first candidate is an LSD1 inhibitor, bomedemstat, for which a study called MK-3543-006 has begun for the treatment of certain patients with essential thrombocythemia (ET). Separately, multiple phase II studies are ongoing, which are evaluating bomedemstat either as a monotherapy or in combination for the treatment of myeloproliferative neoplasms (MPNs) such as ET, myelofibrosis (MF), and polycythemia vera (PV). Bomedemstat was added to Merck’s portfolio with the 2022 acquisition of Imago BioSciences.

The second candidate is a BTK inhibitor, nemtabrutinib, being evaluated for the treatment of certain patients with chronic lymphocytic leukemia (CLL) and small lymphocytic lymphoma (SLL). The new study initiated for the above indication on nemtabrutinib is called BELLWAVE-011. Another phase III study is also ongoing, evaluating nemtabrutinib in patients with previously untreated CLL and SLL without TP53 aberrations. 

Merck’s stock is up 6.2% in the past year compared with an increase of 13% for the industry.

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The third candidate, which has entered a new phase III study, is a TROP2 targeting antibody-drug conjugate (ADC) called MK-2870, which was added from the 2022 collaboration with Kelun-Biotech. The study called MK-2870-004 will evaluate MK-2870 for certain patients with non-small cell lung cancer (NSCLC) and certain patients with previously treated endometrial carcinoma. Two other phase III studies are already ongoing, evaluating MK-2870 for NSCLC and endometrial carcinoma-based indications. Merck and Kelun-Biotech are jointly developing MK-2870.

The fourth candidate is MK-5684, an investigational CYP11A1 inhibitor being developed in collaboration with Orion for the treatment of certain patients with metastatic castration-resistant prostate cancer (mCRPC). Merck and Orion, a Finnish pharmaceutical company, entered into the deal in July 2022. MK-5684 is now being evaluated in two phase III studies for the treatment of certain patients with mCRPC.

Zacks Rank and Stocks to Consider

Merck has a Zacks Rank #3 (Hold) currently.

Some better-ranked stocks in the drug/biotech companies worth considering are Aquestive Therapeutics (AQST - Free Report) , Novo Nordisk (NVO - Free Report) and Novartis (NVS - Free Report) . While Aquestive Therapeutics sports a Zacks Rank #1 (Strong Buy) at present, Novo Nordisk and Novartis have a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, the consensus estimate for Aquestive Therapeutics’ 2024 loss has narrowed from 56 cents per share to 34 cents per share. Aquestive Therapeutics’ stock has surged 151.7% in the past year.

Aquestive Therapeutics beat estimates in three of the trailing four quarters and missed the mark once, delivering an average earnings surprise of 70.58%.

Estimates for Novo Nordisk’s 2024 earnings per share have increased from $3.07 to $3.16 over the past 60 days. NVO’s stock has surged 54.5% in the past year.

Earnings of Novo Nordisk beat estimates in two of the last four quarters, missed in one and matched estimates in one, delivering an earnings surprise of 0.58% on average.

Estimates for Novartis’ 2024 earnings per share have increased from $7.08 to $7.23 over the past 60 days. NVS’ stock has risen 18.2% in the past year.

Earnings of Novartis beat estimates in the last four quarters delivering an earnings surprise of 6.99% on average.

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