How Eye Trial Success At Merck (MRK) Has Changed Its Investment Story

Merck (MRK) and Eisai announced FDA approval for WELIREG (belzutifan) plus LENVIMA (lenvatinib) to treat advanced kidney cancer. The combo reduced disease progression/death risk by 26% in a trial, but no significant overall survival benefit was seen. Serious side effects occurred in 54% of patients.

Merck and Moderna's mRNA cancer vaccine, intismeran autogene, showed positive results in a late-stage trial, extending survival time without cancer recurrence or spread. The vaccine, tested on melanoma patients, trains the immune system to target cancer cells. Full results will be presented at the 2026 European Society for Medical Oncology meeting. The trial involved 1,137 participants, with two-thirds receiving the vaccine alongside Keytruda, a standard immunotherapy.

Bank of America (BAC) hosted investor meetings with Merck's (MRK) Chief Medical Officer, expressing confidence in Merck's pipeline. Keytruda, Merck's top-selling drug, faces patent expiration in 2028. Merck raised its 2026 revenue forecast to $66.3B-$67.3B. BofA maintained a Buy rating and $166 price target. Merck's sac-TMT lung cancer drug is a key focus, with trial results expected in October.

Merck (MRK) received an FDA label update for WINREVAIR in pulmonary arterial hypertension, including Phase 3 trial data. The stock has seen significant gains, with a 1-year total shareholder return of 91.32%. Merck's pipeline expansion and strategic moves aim to drive long-term earnings, though risks include Keytruda exclusivity loss and pricing pressures. The stock trades at $148.08, near its fair value estimate of $150.42, with a high P/E ratio of 115.1x.

Merck reported positive topline results from the BRUNELLO trial of remigromig (MK-3000) for diabetic macular edema. Both doses showed non-inferiority to ranibizumab in improving visual acuity. The drug was generally well tolerated but had higher rates of certain adverse events. Merck is also developing MK-8748 for retinal diseases. The BRUNELLO trial enrolled 984 participants and evaluated two dose levels against ranibizumab.

Merck & Co Inc (MRK) reported positive Phase 2b/3 trial results for remigromig in diabetic macular edema, meeting primary endpoints. The stock is 22.6% overvalued per GF Value™, with a 2.29% dividend yield and a high payout ratio of 1.11, raising sustainability concerns. MRK has a GF Score™ of 76, indicating solid profitability and growth but moderate financial strength and low momentum.