Street View: Merck eye disease drug matches Roche's therapy in study, analysts cautious

By Reuters News

** Merck MRK.N said on Saturday its experimental eye drug remigromig matched Roche's ROPC.S Lucentis in improving vision in a mid-to-late-stage trial of patients with diabetic macular edema, a diabetes-related condition that can cause vision loss

** Patients receiving remigromig gained 8.7 to 9.1 letters on a standard vision test after one year, versus 11.8 letters with Lucentis, meeting the study's non-inferiority goal

NOT A CLEAR PRODUCT WIN?

** Jefferies ("buy", PT: $176) says the study data "less impressive" than the topline results, citing numerically weaker vision gains than Lucentis, lack of subgroup data in previously treated patients and higher rates of treatment discontinuations

** BMO Capital Markets ("outperform", PT: $170) says the study validates efficacy but "the results fall short of supporting meaningful differentiation," adding that "that not every business-development transaction will produce a commercially successful asset"

** Barclays ("neutral", PT: $150) says the study does not show remigromig offers an advantage in patients who do not respond adequately to anti-VEGF therapy or when used alongside such treatments, leaving its commercial differentiation unproven

** Jefferies adds remigromig helps diversify Merck's pipeline but is "not a clear product win," and cut its risk-adjusted sales estimate for the drug to about $300 million from $750 million

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