11:38 AM EDT, 09/29/2025 (MT Newswires) -- Genmab's ( GMAB ) $8 billion offer for Merus (MRUS) represents a "good deal" that largely reflects the value of Merus' petosemtamab as a treatment for head and neck cancer, Truist Securities said in a Monday note.

The all-cash transaction was announced earlier today, under which a Genmab ( GMAB ) unit will launch a tender offer to purchase all of Merus' shares at $97 apiece. Truist said the offer represents about a 43% upside from Merus stock's last closing price.

According to the investment firm, Genmab's ( GMAB ) immediate development plans for petosemtamab include starting a trial in locally advanced head and neck cancer in 2026. Truist said petosemtamab is targeted to launch in 2027 and Genmab ( GMAB ) estimates at least $1 billion in sales from the product by 2029.

"We hoped for more implied value for the colorectal cancer opportunity," Truist said, noting that petosemtamab's potential was "less" of a contributor to Merus' valuation due to a potentially more complex development process.

Truist downgraded Merus to hold from buy, with a higher price target of $97 from $88.

Shares of Merus were up more than 36% in recent Monday trading.

Price: 28.80, Change: -0.27, Percent Change: -0.95