Merck's (MRK) "HIV pipeline" is brewing in the background, as weekly treatment are interesting and showing path towards long-acting treatments, UBS Securities said in a report emailed Tuesday.
The company presented phase 3 data showing its once-weekly oral combination of islatravir and lenacapavir was noninferior to Gilead Sciences' (GILD) biktarvy and other standard treatments. The firm expects Merck and Gilead Sciences to file data with the FDA soon, with a potential approval in 2027, according to the report.
The firm viewed alimatravir as "intriguing" because its once-monthly dosing, fast onset and lack of a "loading dose" could appeal to patients seeking alternatives to daily PrEP. Phase 3 data are expected in 2027, potentially supporting a launch as early as 2028, the report said.
Merck is also advancing a weekly combination of ulonivirine and islatravir into phase 3 testing. However, the firm said "adoption" could take time because of competition from Gilead and GSK (GSK) and the likelihood that the products will initially be used mainly as "switch" therapies, according to the report.
UBS kept its buy rating on Merck with a price target of $145.
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