Merck shares posted the biggest rise in the Dow Jones index on Wednesday, reaching an all-time high after US health authorities gave the go-ahead for the prescription of its Winrevair (sotatercept) to treat pulmonary arterial hypertension.

At around 11:45 a.m. (New York time), the biopharmaceutical group's shares were up 3.8% after climbing above $133, a record high in the laboratory's stock market history.

Bank of America analysts note that "sotatercept's approval represents the best-case scenario, as there are no special conditions attached to it".

"There are no black box warnings, REMS (Risk Evaluation and Mitigation) or functional restrictions attached to sotatercept's dosing regimen", adds BofA.

The research firm adds that the drug, administered subcutaneously, could be used by patients at home, provided it is accompanied by monitoring by a healthcare professional.

While it also welcomes the product's unqualified validation, contrary to fears that may have been expressed by investors, UBS expects a successful launch for sotatercept, which it sees reaching sales of $650 million as early as 2024.

The intermediary thus evaluates the value of sotatercept in pulmonary arterial hypertension alone at $22 per share, on the basis of expected annual sales of $8.2 billion.

Jefferies also expects the drug to be successfully commercialized, and anticipates annual sales of $11 billion, leading it to raise its target price for the stock from $140 to $145.

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