Merck & Co. shares advanced 1.8% to close at $121.93 on Friday, nearing its 52-week high, following regulatory approval in Canada for its respiratory syncytial virus (RSV) preventive treatment. Health Canada cleared ENFLONSIA (clesrovimab) for use in newborns and infants, a key step in the company's immunization portfolio.
Analyst Boost and Trading Activity
Guggenheim increased its price target for Merck to $140 from $122, maintaining a buy rating. Trading volume reached approximately 13 million shares, slightly below the 50-day average. The stock has risen for seven consecutive sessions.
Insider Transactions
Recent regulatory filings revealed three executives sold shares this week:
- Richard R. DeLuca, executive vice president, sold 37,685 shares at a weighted average price of $120.9241 on February 6.
- Johannes Jacobus Oosthuizen, head of the U.S. market, disposed of 15,000 shares at $121.8661.
- David Michael Williams, chief information and digital officer, exercised options and sold 5,000 shares at $121.905.
Market Context and Upcoming Catalysts
The approval enables Merck to proceed with launch preparations and reimbursement discussions across Canadian provinces. The company notes the monoclonal antibody may provide up to five months of protection, though market access will depend on regional health policies.
Investors are monitoring several near-term developments, including an FDA decision expected on February 20 for a KEYTRUDA combination therapy targeting platinum-resistant recurrent ovarian cancer. Merck is scheduled to report first-quarter 2026 financial results on April 30.
The infant RSV prevention market remains competitive, with ENFLONSIA's commercial success contingent on pricing, reimbursement speed, and physician adoption relative to existing alternatives.