The bullish case for Merck & Co., Inc. (NYSE: MRK) has been “derailed” after the corporate signaled to traders final week a longer-than-expected delay in a key lung most cancers trial for its Keytruda remedy. Morgan Stanley’s David Risinger downgrades Merck’s inventory ranking from Obese to Equal-Weight with a worth goal slashed from $69 to $56.
Many traders had been engaged on the belief that Merck’s first-line lung most cancers trial known as Keynote 189 would see success in early 2018, the badyst wrote. Nonetheless, the corporate guided to a brand new main completion date for February 2019 with no readability on any interim look timing though any interim look in 2018 will doubtless achieve success.
On high of that, the corporate additionally pulled its first-line Keytruda chemo combo lung most cancers software in Europe.
Within the meantime, Merck’s competitors may win the race to report first-line lung most cancers part three outcomes first, the badyst additionally wrote. Particularly, Bristol-Myers Squibb Co (NYSE: BMY) is predicted to report two segments of its CheckMate-227 within the first half of 2018. Roche Holding Ltd. (ADR) (OTCM: RHHBY) can also be anticipated to report first-line lung most cancers trial leads to the primary half of 2018 from its IMpower 150.
Lastly, Merck’s Keytruda replace prompted the badyst to make the next revisions to his estimates:
- 2018 EPS lowered from $four.04 to $four.00.
- 2019 EPS lowered from $four.34 to $four.17.
- 2020 EPS lowered from $four.80 to $four.54.
- Lengthy-term EPS compounded annual progress charge from 6.7 % to five.four %.
At time of publication, shares of Merck had been down four.94 % at $55.40.
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Newest Scores for MRK
|Oct 2017||SunTrust Robinson Humphrey||Downgrades||Purchase||Maintain|
|Oct 2017||Morgan Stanley||Downgrades||Obese||Equal-Weight|
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