Merck KGaA shares fell by as much as 10% after the company announced the termination of its phase III trial of xevinapant in neck cancer. The interim analysis revealed that the study is unlikely to meet its primary objective, prompting the halt.
The TrilynX trial evaluated xevinapant, an apoptosis protein inhibitor, in combination with chemo-radiotherapy for patients with unresected locally advanced squamous cell carcinoma of the head and neck (LA SCCHN).
The market reaction was knee-jerk at first. But after a 10% drop, the stock settled 6% lower at €157.6. Investment bank Jefferies, which still rates the stock 'buy' up €200, said: "We should expect [a] €60 million impairment to hit the profit and loss in the second quarter of 2024 and write-off close to €188 million (EBITDA-pre neutral). Focus [will be] on late-stage in-licensing deals to revive the healthcare franchise."