Merck & Co’s shares surged 3.4% to $154.03 in morning trading, reaching a 52-week high of $154.49, after the company reported positive Phase 3 results for its personalized mRNA melanoma vaccine, intismeran autogene.
The INTerpath-001 trial, conducted in high-risk post-surgical melanoma patients, met its primary endpoint of recurrence-free survival and a key secondary endpoint of distant metastasis-free survival. The vaccine, developed in collaboration with Moderna, demonstrated a meaningful improvement when combined with Merck’s blockbuster cancer drug Keytruda, compared with Keytruda alone. This marks the first positive Phase 3 outcome for a personalized neoantigen cancer therapy, according to the company.
Analysts responded swiftly, with Morgan Stanley upgrading Merck to Overweight from Equal Weight and more than doubling its price target to $179 from $116. BMO Capital raised its target to $170, UBS to $175, and Goldman Sachs to $160. Terence Flynn of Morgan Stanley highlighted the vaccine’s potential alongside other pipeline assets, including sac-TMT for oncology and tulisokibart for inflammatory bowel disease, as drivers of growth beyond Keytruda’s anticipated 2028 patent expiration.
Merck’s broader pipeline includes Keytruda, which remains a key revenue contributor despite looming generic competition. The company’s shares outperformed the broader market, with the S&P 500 up 0.3%, the Dow Jones Industrial Average rising 0.7%, and the Nasdaq gaining 0.1% in early trading.
