Merck & Co. (MRK): Sac-TMT Further De-Risked by Partner Kelun OptiTROP-Lung06

Research evidence excerpt

Merck & Co. (MRK): Sac-TMT Further De-Risked by Partner Kelun OptiTROP-Lung06

Equity Research

15 July 2026 | 8:42AM EDT

Merck & Co. (MRK): Sac-TMT Further De-Risked by Partner Kelun

OptiTROP-Lung06

Overnight, Kelun Biotech, MRK’s partner for key pipeline program sac-TMT (see our Asad Haider, CFA

+1(212)902-0691 | asad.haider@gs.com

sac-TMT Primer), announced positive topline results for the China Ph3 Goldman Sachs & Co. LLC

OptiTROP-Lung06 trial (1L nsq-NSCLC with PD-L1 TPS<1%) meeting the primary Nick Jennings

endpoint (PFS) at a pre-specified interim analysis — no quantitative details were +1(415)249-7412nick.jennings@gs.com|

provided, which we expect at ESMO in October. In a head-to-head comparison with Goldman Sachs & Co. LLC

Jeff Suthe SOC (Keytruda plus chemo), the sac-TMT/Keytruda combo demonstrated +1(212)357-9930 | jeff.su@gs.com

significantly prolonged PFS and a positive OS trend. OptiTROP-Lung06 marks Goldman Sachs & Co. LLC

another significant China ph3 success on the heels of OptiTROP-Lung05 in 1L

mNSCLC PD-L1 TPS≥1% at ASCO2026, and more importantly provides direct

evidence of superiority of sac-TMT/Keytruda combo over the Keytruda/chemo

combo (vs. Lung05 trial with Keytruda mono as control).

In our view, these results are particularly significant, as a key question has been

MRK’s strategy for addressing the 1L mNSCLC PD-L1 TPS<50% population — per

MRK’s commentary at our conference, positive OptiTROP-Lung06 provides a key

de-risking input. On the forward, in terms of next inputs on sac-TMT, we look to

ESMO for details, as well as external readouts in the 1L mNSCLC landscape from

SMMT’s Harmoni-3 and AZN’s AVANZAR trial.

Valuation and Risks

Valuation: We arrive at our 12-month target of $137 using a 14.0x multiple on our

(Q5-Q8) adjusted EPS.