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Merck tumbles despite cancer drug survival gains in trials
Merck shares fell 3.2% on Monday. The drop came on the same day the drugmaker reported survival gains in endometrial cancer studies for Keytruda and an experimental drug.
Quick Read
- Merck shares fell 3.2% on Monday while the S&P 500 rose 0.7%.
- Merck reported survival gains for Keytruda and the experimental drug sacituzumab tirumotecan in endometrial cancer studies.
- The reports gave no reason for the share decline.
- The FDA has set a decision date of June 15, 2027, for sacituzumab tirumotecan, and Merck reports quarterly results on Oct. 29.
What happened to Merck shares?
Merck (NYSE: MRK) shares fell 3.2% on Monday and closed at $140.61. They had ended the prior session at $145.27. The company lost about $11 billion in market value.
Why it matters: The broader market moved the other way. The S&P 500 rose 0.7%.
By the numbers: Merck now trades 10.1% below its 52-week high of $156.45, the highest price it reached over the past year.
What did the trials show?
Merck presented late-stage results in advanced or returning endometrial cancer, which starts in the lining of the womb. The data came at the European Society for Medical Oncology Congress and appeared in The Lancet.
The study of sacituzumab tirumotecan tested an experimental drug Merck is developing with Kelun-Biotech. It is an antibody-drug conjugate, which links an antibody to a cancer-killing drug. Patients had already received chemotherapy and immunotherapy.
Compared with standard chemotherapy, the drug helped patients live longer and delayed the cancer's growth, according to Merck.
The Keytruda study tested the immunotherapy on its own in patients whose tumors carry a trait called mismatch repair deficiency, a flaw in how cells fix their DNA. Keytruda delayed the cancer's growth longer than chemotherapy, Merck said. Researchers reported no new safety concerns in the studies.
Why did the stock fall after good news?
Merck's announcements did not address the share move. The reports gave no cause for the decline.
Some details were less clear-cut. Overall survival was the other main goal of the Keytruda study. Merck reported only a favorable trend there so far, and follow-up continues.
Separately, BioNTech said in October that its experimental treatment paired with Keytruda did not delay head and neck cancer more than Keytruda alone.
What comes next?
What’s next: The FDA has accepted Merck's application for sacituzumab tirumotecan under priority review, a faster review track. The agency set a decision date of June 15, 2027.
Merck is scheduled to report quarterly results on Oct. 29. The Fed announces its rate decision a day earlier, on Oct. 28.
For readers
What it could mean for you: People who own Merck shares directly carry the full swing of the stock, with no other holdings to offset it. Monday's drop showed that strong trial data may not lift a drugmaker's shares on the day it is released. The next tests for the stock could come with quarterly results on Oct. 29 and, later, the FDA decision on sacituzumab tirumotecan. Savers who hold Merck only through an S&P 500 index fund may feel the move far less, since it is a small slice of a broad portfolio.
Questions and answers
Why did Merck stock fall on Monday?
Merck shares fell 3.2% on the day the company reported positive cancer trial results. The company's announcements and the reports did not give a cause for the decline.
What is sacituzumab tirumotecan?
It is an experimental antibody-drug conjugate that Merck is developing with Kelun-Biotech. In a late-stage study, it helped patients with advanced endometrial cancer live longer than those on standard chemotherapy, according to Merck.
When will the FDA decide on Merck's new endometrial cancer drug?
The FDA accepted Merck's application for sacituzumab tirumotecan under priority review. It set a decision date of June 15, 2027.
When does Merck report earnings?
Merck is scheduled to report quarterly results on Oct. 29.
The numbers
| Merck (MRK) price | $140.61 |
|---|---|
| Merck (MRK) change | −3.21% |
| Merck (MRK) market value | $350 billion |
| Merck (MRK) 52-week high | $156.45 |
| S&P 500 change | +0.70% |
| 10-year Treasury yield | 5.00% |
Monday’s close
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