Stock Markets July 15, 2026 08:49 AM

Merck Shares Rise After Partner's Lung Cancer Trial Meets Primary Goal

Kelun-Biotech reports positive late-stage results for sac-TMT plus Keytruda in PD-L1 negative first-line lung cancer, lifting Merck stock in premarket trading

By Caleb Monroe
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Merck & Co. shares gained following Kelun-Biotech's announcement that a late-stage study of the experimental antibody-drug conjugate sac-TMT, when given with Merck's immunotherapy Keytruda, met its primary endpoint in first-line advanced lung cancer patients without PD-L1 expression. The combination improved progression-free outcomes versus Keytruda plus chemotherapy and showed a positive trend for overall survival. Separately, Merck said Keytruda met its primary goal in a late-stage endometrial cancer study.

Merck Shares Rise After Partner's Lung Cancer Trial Meets Primary Goal
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Key Points

  • Merck shares rose about 2.5% after partner Kelun-Biotech reported positive late-stage results for sac-TMT combined with Keytruda.
  • The Kelun trial met its primary endpoint in first-line advanced lung cancer patients lacking PD-L1 expression, improving progression-free outcomes versus Keytruda plus chemotherapy.
  • Kelun said the study is the first late-stage trial of an antibody-drug conjugate plus immunotherapy to meet its main goal in this first-line lung cancer setting; Leerink analyst Akash Tewari said the data support the potential to challenge current standard-of-care regimens.

Merck & Co. shares moved higher after partner Kelun-Biotech disclosed positive data from a late-stage lung cancer trial that combined the experimental agent sac-TMT with Merck's immunotherapy Keytruda. The stock rose 2.5% on the news and was trading at $123.91 in premarket activity.

Kelun-Biotech said the trial reached its primary endpoint in first-line advanced lung cancer patients whose tumors lacked PD-L1 expression. According to the company, the sac-TMT plus Keytruda regimen extended the time patients lived without their disease worsening compared with a regimen of Keytruda plus chemotherapy.

The study also showed a positive trend toward overall survival, though Kelun described that result as a trend rather than a definitive survival outcome. Kelun characterized the trial as the first late-stage test in which an antibody-drug conjugate combined with an immunotherapy achieved its main objective in this particular first-line lung cancer setting.

An analyst at Leerink Partners, Akash Tewari, said the data bolster the case that sac-TMT plus Keytruda could pose a challenge to current standard-of-care regimens across a wider first-line lung cancer population. That assessment frames the results as having potential commercial and clinical implications, while stopping short of claiming immediate changes to treatment standards.

Separately, Merck announced on Wednesday that Keytruda met the main goal in a late-stage study in advanced or recurrent endometrial cancer. The company released that information alongside the Kelun-Biotech news, combining two clinical developments involving Keytruda in a single day of filings.

Market reaction to the Kelun-Biotech announcement was reflected in Merck's premarket share price, which stood at $123.91 following the disclosures. The market move came after Kelun's characterization of the trial outcome and the analyst commentary highlighting the therapy's potential to compete with established first-line approaches.


Context limitations: The information available describes the trial meeting its primary goal and notes a positive trend toward overall survival, but it does not present additional trial metrics, regulatory timelines, or commercial projections. The analyst comment frames potential competitive impact as possible rather than certain.

Risks

  • Overall survival was described as showing a positive trend, not as a definitive survival benefit, indicating uncertainty about long-term mortality outcomes - this affects clinical and commercial outlooks in the pharmaceutical and biotech sectors.
  • The findings come from Kelun-Biotech's late-stage study and reflect potential rather than confirmed shifts in treatment standards, leaving regulatory and adoption outcomes uncertain - this impacts healthcare and equities tied to drug commercialization.
  • Market reaction may be tied to headline trial results without additional trial metrics or regulatory timelines provided, introducing uncertainty for investors in pharmaceutical and biotech stocks.

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