Merck Shares Rise After Partner Kelun-Biotech Reports Positive Lung Cancer Trial Data

Merck & Co. shares rose in premarket trading after its partner, Kelun-Biotech, announced positive results from a late-stage trial for an experimental lung cancer therapy combined with Merck's blockbuster drug, Keytruda.

Trial Meets Primary Goal

Kelun-Biotech reported Tuesday that a pivotal study of its drug, an antibody-drug conjugate known as sac-TMT, met its primary endpoint. The trial evaluated the combination of sac-TMT and Keytruda in patients with advanced, first-line non-small cell lung cancer whose tumors do not express the PD-L1 protein.

According to the company, the combination therapy demonstrated a statistically significant improvement in progression-free survival—how long patients live without their disease worsening—compared to the current standard of care, which is Keytruda plus chemotherapy. The study also showed a positive trend toward improving overall survival.

Kelun-Biotech noted this is the first late-stage trial of an antibody-drug conjugate and immunotherapy combination to successfully meet its main goal in this specific lung cancer patient population.

Ad

Market Reaction and Outlook

Following the news, shares of Merck (NYSE: MRK) climbed 2.5% to $123.91 in premarket activity. The positive data reinforces the potential for new combination therapies to expand the use of Keytruda, a critical revenue driver for the company.

Analysts see the results as a significant development. Leerink Partners analyst Akash Tewari commented that the data support the potential for the sac-TMT and Keytruda combination to challenge existing treatment regimens for a broader group of first-line lung cancer patients, according to Investing.com.

In separate news, Merck also announced on Wednesday that Keytruda met the primary endpoint in a late-stage study for treating advanced or recurrent endometrial cancer, further underscoring the drug's broad applicability.