Merck shares plunge on failure of cancer drug trial
By Josh White
Date: Tuesday 25 Jun 2024
(Sharecast News) - Shares of German chemical and pharmaceutical firm Merck were falling sharply on Tuesday, after it announced that a trial for its head and neck cancer drug xevinapant had been halted due to a lack of efficacy.
The development was the latest in a series of significant setbacks for the company's pharmaceutical division, according to Reuters.
It would be particularly impactful for Merck's pharmaceutical unit, which also faced disappointment last December when an experimental multiple sclerosis (MS) drug did not meet its primary objectives in late-stage trials.
In 2021, the experimental cancer treatment bintrafusp alfa also failed in trials, leading to the termination of a partnership with GSK.
Reuters said the failure of xevinapant would redirect attention to Merck's other business segments, including specialty chemicals for the electronics industry and laboratory equipment for the biotech sector.
Analysts at Barclays expressed concern, noting that while they were optimistic about Merck's overall business prospects, the company would need to rebuild its reputation regarding its drug development pipeline.
At 1425 CEST (1325 BST), shares in Merck KGaA were down 7.78% at €154.05.
Reporting by Josh White for Sharecast.com.
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