Merus abstract shows ‘stellar potential’ of petosemtamab, says H.C. Wainwright

H.C. Wainwright says the publication of an ASCO abstract gave investors a first look at the “stellar potential” of Merus’ petosemtamab in combination with pembrolizumab for the treatment of first-line head and neck squamous cell carcinoma. The abstract includes 10 patients that reported an overall response rate of 60%, the analyst tells investors in a research note. The firm says the results “not only breeze through” pembrolizumab’s expected 20% ORR for the control, but they also put the program in an “offensive stance” towards Bicara’s BCA101 which has reported an ORR of 45% when combined with pembrolizumab. The abstract reinforces H.C. Wainwright’s thesis toward accessing a $2B potential market opportunity for Merus. It keeps a Buy rating on the shares with a $65 price target.