Raludotatug Deruxtecan Shows Significant Response Rates in Patients with Recurrent Platinum-Resistant Ovarian, Primary Peritoneal, or Fallopian Tube Cancer in Phase 2 of REJOICE-Ovarian01 Trial
Efficacy of Raludotatug Deruxtecan: The phase 2 part of the REJOICE-Ovarian01 trial showed a confirmed objective response rate (ORR) of 50.5% in patients with platinum-resistant ovarian cancer receiving raludotatug deruxtecan, with a disease control rate of 77.6%. The 5.6 mg/kg dose was selected for further evaluation in the phase 3 trial.
Safety Profile: The safety profile of raludotatug deruxtecan was consistent with previous trials, with common treatment-emergent adverse events including nausea, anemia, and neutropenia. Serious adverse events were reported, but no new safety signals were identified.
Need for New Treatments: With 70-80% of advanced ovarian cancer patients experiencing disease progression after standard platinum-based chemotherapy, there is a significant need for new treatment options, highlighting the potential role of raludotatug deruxtecan in this patient population.
Collaboration and Future Development: Raludotatug deruxtecan is being developed by Daiichi Sankyo and Merck, and it received Breakthrough Therapy Designation from the FDA, indicating its potential as a new treatment for patients with platinum-resistant ovarian cancer expressing CDH6.
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- Eli Lilly's Acquisition: Eli Lilly announced its agreement to acquire Orna Therapeutics for $2.4 billion in cash.
- Market Reaction: Following the announcement, Eli Lilly's shares experienced an increase.
- Investor Sentiment Shift: Following earnings calls from tech giants like Microsoft, Google, and Amazon, investor confusion about future directions led to Amazon losing over $300 billion in market cap, reflecting strong skepticism regarding its $200 billion AI investment plan.
- Capital Expenditure Comparison: Google announced an increase in capital expenditures to $175 billion to $185 billion, exceeding the expected $115 billion to $120 billion, indicating a proactive approach in AI despite challenges from slowing ad revenues.
- Changing Competitive Landscape: With Alphabet's ongoing investments and successes in AI, YouTube's user base has grown to 750 million, and Waymo's self-driving business is outpacing Tesla, suggesting a strengthening competitive advantage that may attract more investor interest.
- Mixed Market Reactions: Despite OpenAI and Anthropic's strong performance in AI, Microsoft's Copilot sales have been disappointing, highlighting investor concerns about its future growth and reflecting differing levels of confidence across companies.
- Telecom Appeal: Verizon Communications (VZ) has achieved only 2% year-over-year growth in a highly competitive U.S. mobile market, yet its forward-looking dividend yield of 6.1% attracts income-seeking investors, highlighting the stock's stability and appeal amid market volatility.
- Pharmaceutical Strategy: Merck (MRK) is strategically preparing for the 2028 patent expiration of its Keytruda drug by acquiring companies like Prometheus Biosciences and Verona Pharma, expecting to generate $70 billion in new revenue by the mid-2030s, showcasing its market expansion capabilities.
- Beverage Stability: Coca-Cola (KO) offers a forward-looking dividend yield of 2.7% and boasts a 63-year history of dividend increases, demonstrating strong brand loyalty and marketing prowess, ensuring a reliable source of passive income for investors.
- Market Trend Shift: Amid the decline of tech stocks, investors are increasingly turning to blue-chip stocks, particularly high-dividend stocks within the Dow Jones Industrial Average, reflecting a preference for stable income and a reassessment of risk in the current market environment.
- Telecom Market Saturation: The U.S. mobile phone market is highly saturated, with Verizon Communications (NYSE: VZ) reporting only 2% year-over-year revenue growth last quarter, indicating limited net growth potential, although its forward-looking dividend yield of 6.1% remains attractive.
- Pharmaceutical Positioning: Pharmaceutical giant Merck (NYSE: MRK) is preparing for the 2028 patent expiration of Keytruda, having made significant acquisitions like the $10.8 billion purchase of Prometheus Biosciences in 2023, expecting these moves to drive $70 billion in new revenue by the mid-2030s.
- Coca-Cola's Steady Income: Coca-Cola (NYSE: KO) offers a forward-looking dividend yield of 2.7%, backed by 63 years of annual dividend increases, showcasing its strong brand loyalty and marketing prowess, solidifying its status as a top dividend payer.
- Investor Considerations: While Verizon is seen as a stable dividend stock, the Motley Fool analyst team has identified 10 stocks that are currently viewed as more valuable investments, potentially yielding significant returns in the coming years, prompting investors to choose wisely.
- Institutional Trading Signal: On December 8, 2025, Merck & Co., Inc. (MRK) saw an unusually large institutional options trade, purchasing 30,000 April 2026 $110 call contracts, representing approximately $300 million in notional exposure, executed as MRK retraced to its 21-day exponential moving average, indicating confidence in medium-term repricing.
- Catalyst Expectations: The choice of April 2026 expiration aligns with multiple anticipated catalysts, including FY2025 earnings, early 2026 pipeline updates, and increasing visibility into Merck's post-Keytruda growth trajectory, collectively enhancing investor confidence.
- Capital Efficiency Optimization: The bullish thesis proposes a split-strike risk reversal strategy, selling April $85 puts to finance the $110 calls, anchoring downside risk to the 200-day simple moving average, a level widely viewed as a structural accumulation zone for a high-quality defensive stock.
- Fundamental Support: The accelerating launch of Winrevair is tracking toward blockbuster status, while the durability and lifecycle extension of Keytruda, along with a deepening pipeline in cardiology, vaccines, and respiratory diseases, further solidify investor confidence, as the structure offers limited downside with uncapped upside potential.

- Stock Sale Announcement: Richard Robert DeLuca Jr., an officer at Merck & Co. (MRK.US), plans to sell 37,685 shares of the company's common stock.
- Market Value: The total market value of the shares to be sold is approximately $4.56 million.










