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MRK Expands Tulisokibart Program in Three New Inflammatory Diseases

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Key Takeaways

  • MRK begins three phase IIb studies of tulisokibart in HS, r-axSpA and rheumatoid arthritis.
  • Tulisokibart is now being tested across six types of immune-mediated inflammatory diseases.
  • MRK's phase III pipeline has nearly tripled since 2021, boosting long-term growth potential.

Merck (MRK - Free Report) announced that it has initiated three separate phase IIb studies evaluating its investigational TL1A inhibitor, tulisokibart (MK-7240), in three new immune-mediated inflammatory diseases.

The three new phase IIb studies will evaluate the safety and efficacy of tulisokibart for treating moderate-to-severe hidradenitis suppurativa ([HS] – the MK-7240-12 study), radiographic axial spondyloarthritis ([r-axSpA] – the MK-7240-013 study) and rheumatoid arthritis ([RA] – the MK-7240-014 study).

Tulisokibart is currently being evaluated in separate phase III studies for two different types of inflammatory bowel disease – ulcerative colitis and Crohn’s disease. Besides this, the candidate is also being investigated in another phase II study for treating patients with systemic sclerosis-associated interstitial lung disease.

With the initiation of three new phase IIb studies, tulisokibart, is now being studied across six immune-mediated inflammatory diseases.

MRK's Price Performance

Year to date, shares of Merck have declined 10.7% against the industry’s increase of 8.5%.

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MRK's Encouraging Pipeline Progress

Merck is thriving on new products and pipeline candidates to drive its long-term growth. The company has made meaningful regulatory and clinical progress across areas like oncology, vaccines and infectious diseases while executing strategic business moves.

MRK’s phase III pipeline has almost tripled since 2021, supported by in-house pipeline progress as well as the addition of candidates through various merger and acquisition deals. This has positioned Merck to launch around 20 new vaccines and drugs over the next few years, with many having blockbuster potential.

Tulisokibart was added to MRK’s portfolio following the acquisition of Prometheus Biosciences in 2023.

Besides tulisokibart, promising candidates in late-stage development include enlicitide decanoate/MK-0616, an oral PCSK9 inhibitor for hypercholesterolemia, bomedemstat/MK-3543 for essential thrombocythemia, myelofibrosis and polycythemia vera, nemtabrutinib/MK-1026, a BTK inhibitor for hematological malignancies and Daiichi-Sankyo-partnered antibody-drug conjugates for various types of cancer indications.

Merck recently completed the acquisition of Verona Pharma for approximately $10 billion. The deal added Verona’s Ohtuvayre, approved for the maintenance treatment of chronic obstructive pulmonary disease. This addition is likely to strengthen Merck’s cardio-pulmonary pipeline and portfolio as the drug’s differentiated profile provides a significant edge over its competitors.

MRK's Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the biotech sector are Akero Therapeutics (AKRO - Free Report) , Allogene Therapeutics (ALLO - Free Report) and Chemomab Therapeutics (CMMB - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Akero Therapeutics’ 2025 loss per share have narrowed from $3.83 to $3.74. Loss per share estimates for 2026 have narrowed from $4.27 to $4.12 during the same period. AKRO stock has surged 65.5% year-to-date.

Akero Therapeutics’ earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 49.24%.

In the past 60 days, estimates for Allogene Therapeutics’ 2025 loss per share have narrowed from $1.02 to 96 cents. Loss per share estimates for 2026 have narrowed from 95 cents to 84 cents during the same period. ALLO stock has lost 35.2% year-to-date.

Allogene Therapeutics’ earnings beat estimates in three of the trailing four quarters, while meeting the same on the remaining occasion, with an average surprise of 14.03%.

In the past 60 days, estimates for Chemomab Therapeutics’ 2025 loss per share have narrowed from $2.40 to 60 cents. Loss per share estimates for 2026 have narrowed from $2.80 to $1.00 during the same period. CMMB stock has plunged 58.6% year-to-date.

Chemomab Therapeutics’ earnings beat estimates in three of the trailing four quarters, while meeting the same on the remaining occasion, with an average surprise of 26.25%.

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