As Merck & Co Inc MRK moves closer to reporting its fourth-quarter results in three days, its stock is validating investor confidence. While Merck stock is up 20% since Nov. 28, a technical signal indicates the rally isn’t over yet. Merck would be reporting on Feb. 1 before market hours.
Keytruda – Key To Stock Surge
Since November 2023, Merck’s cancer drug, Keytruda (pembrolizumab) has received 4 FDA approvals with the latest coming in on Jan. 12. The latest approval clears the use of Keytruda plus chemoradiotherapy as treatment for patients with FIGO 2014 Stage III-IVA cervical cancer.
Related:
- Hope for Kidney Cancer Patients, Merck’s Keytruda Cuts Risk Of Death By 38% Following Surgery
- Merck’s Multi-Billion Cancer Drug Keytruda Improves Disease-Free Survival In Advanced Bladder Cancer After Surgery, Data Shows
- Merck’s Crown Jewel Cancer Drug Keytruda Scores FDA Approval For Third Indication In Cervical Cancer
The surge in Merck stock since November is primarily driven by investor optimism around higher sales of Keytruda, Gardasil, and its Covid-19 antiviral – Lagevrio. The company reported continued market share gains for Keytruda in Q3, which saw a 17% y-o-y jump in sales to $6.3 billion.
Since then, growing excitement for Keytruda has been boosting the stock price up for the company.
Harpoon To Boost Cancer Pipeline
A $680 million takeover of Harpoon Therapeutics Inc HARP announced by Merck in 2024 has further helped keep investor momentum up. With the acquisition, Merck intends to beef up its cancer pipeline. Harpoon’s armory of dual-acting immunotherapies targeting lung, abdominal and blood cancers, should help Merck achieve its objective.
Related: Health Care Company Merck & Co Announces Acquisition of Harpoon Therapeutics
Golden Cross Validating Investor Confidence
While business is going strong, technicals are hailing optimism as well.
Merck stock has made a Golden Cross, as can be seen in the chart above. The 50-day SMA has crossed over the 200-day SMA from below. This event is considered a positive signal for a stock or an index.
The Golden Cross is often interpreted as a sign of upward momentum and potential future price appreciation. Traders and investors use this crossover as a bullish indication, suggesting that the stock’s recent upward trend is gaining strength, and it may continue to rise in the near term.
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