Shares of Merck & Co. climbed approximately 1.8% in after-hours trading Friday, reaching $121.41, after Deutsche Bank upgraded the stock to a Buy rating and increased its price target. The firm's analyst suggested the market is currently undervaluing the pharmaceutical giant, projecting a potential for over $35 billion in risk-adjusted revenue by 2035 from its pipeline and recent acquisitions.
Focus on Post-Keytruda Strategy
The upgrade arrives as investor attention intensifies on Merck's strategy to sustain growth beyond its blockbuster cancer drug Keytruda, which faces a future patent expiration. The company is scheduled to present new clinical data for bladder and kidney cancer treatments at the ASCO Genitourinary Cancers Symposium, set for February 26-28. Key studies include combinations of Keytruda with other therapies.
Insider Transaction and Market Context
In a separate filing, Merck's chief marketing officer sold 10,000 shares on February 12 at a weighted average price near $121.46. While insider sales are routine, they often draw scrutiny when a stock is trading near recent highs. U.S. equity markets were closed Monday for the Washington's Birthday holiday, with trading set to resume Tuesday.
Abstracts for the ASCO GU conference are expected to be released on February 23, which could shift market sentiment ahead of the formal presentations. The financial community will be watching closely for any data that impacts survival forecasts for Merck's key oncology programs.
