Back to top

Image: Bigstock

Merck's Keytruda on a Roll in a Thriving Anti-PD-L1 Market

Read MoreHide Full Article

The demand for checkpoint inhibitors, especially those targeting PD-1 and PD-L1 has risen significantly in the past couple of years. Cancer therapies that target either PD-1 or PD-L1 can stop them from attaching and help keep cancer cells from hiding.

PD-L1 inhibitors available on the market are Merck’s (MRK - Free Report) Keytruda, AstraZeneca’s (AZN - Free Report) Imfinzi, Bristol Myers’ (BMY - Free Report) Opdivo, Roche’s Tecentriq and Pfizer’s (PFE - Free Report) Bavencio.

Keytruda is a key contributor to Merck’s sales. In a very short span of time, Keytruda has become Merck’s largest product. It is already approved for use in 12 indications across eight different tumor types in the United States.

The treatment generated sales of more than $3 billion in the first half of 2018, rising 114% year over year. This upside was driven by the global launch of indications, which further boosted demand. Keytruda sales are gaining, particularly from strong momentum in the first-line lung cancer indication. In fact, Keytruda is the only anti-PD-1 approved in the first-line setting for certain lung cancer patients both as a monotherapy as well as a combination therapy.

The Keytruda development program is also progressing well and the drug is being studied for more than 30 types of cancer in more than 800 studies, including more than 400 combination studies. Merck is collaborating with several companies including Amgen (AMGN), Incyte (INCY), Glaxo (GSK) and Pfizer separately for the evaluation of Keytruda in combination with other regimens.

Keytruda is being studied in late-stage studies for breast, colorectal, esophageal, gastric, head and neck, hepatocellular, nasopharyngeal, renal and small-cell lung cancers. This year, Merck announced positive data from several late-stage studies on Keytruda for further line extensions.

Several regulatory decisions for new indications in the United States as well as in Europe are due in the fourth quarter of 2018 and 2019, which if approved can further boost sales. A key decision on the label expansion of Keytruda as a first-line treatment for metastatic squamous NSCLC, a difficult-to-treat lung cancer patient population, based on data from the phase III KEYNOTE-407 study is expected in October.

Though Keytruda has its share of side effects and suffered some major pipeline setbacks, particularly in 2017, it is probably one of the most successful PD-1 and PD-L1 inhibitors in the market now.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Published in