Bank of America kept its Buy rating and $166 target for Merck, citing pipeline data expected over the next 12–18 months. A trial found sac-TMT plus Keytruda delayed progression versus chemotherapy plus Keytruda in first-line lung cancer; full results are due Oct. 25.
Bank of America held investor meetings with Merck Chief Medical Officer Eliav Barr on Sept. 22; its Sept. 23 note said management conveyed confidence across a catalyst-rich pipeline. OptiTROP-Lung06 is a Phase 3 study in first-line patients with PD-L1-negative non-small cell lung cancer, and its full results are scheduled for presentation at the ESMO Congress in Madrid. BofA also expected results this quarter from AstraZeneca and Daiichi Sankyo’s AVANZAR trial, which tests Datroway with immunotherapy and carboplatin.
Keytruda generated $31.7 billion in 2025 sales, and its key U.S. patent protection begins running out in 2028. Other catalysts BofA flagged include detailed Phase 3 melanoma-vaccine data due in October, 2027 mid-stage kidney and bladder cancer results, and upcoming ulcerative-colitis and diabetic-macular-edema trial updates. Risks it cited include Keytruda competition and pricing pressure, uncertainty over Medicare price negotiations for Keytruda Qlex, and the possibility of pipeline results falling short.
