Xevinapant’s discontinuation reads positive for Merus, says BofA

After Merck KGaA (MKGAY) discontinued the phase 3 TrilynX trial evaluating xevinapant in combination with chemotherapy in patients with unresectable locally advanced head and neck squamous cell carcinoma, or HNSCC, BofA noted that some key opinion leaders the firm had spoken with had posed xevinapant as a potential threat to Merus’ (MRUS) petosemtamab. The firm, which thinks the update from Merck KGaA has a positive read through to Merus as it further de-risks the large commercial opportunity for petosemtamab, maintains the stock as its top small cap pick for 2024 and keeps a Buy rating and $76 price target on Merus shares.