#1 - Merck & Co. (NYSE:MRK)
Merck & Co. (NYSE: MRK) is down 6.5% in 2024 and 11.5% in the three months ending October 2024. The issue stems from the company’s flagship drug, Keytruda, which will lose exclusivity in 2028.
That may sound like a long time, but to investors looking to take a long position, that’s a concern. Keytruda accounted for nearly 50% of Merck’s revenue in the second quarter of 2024 ($7.3 billion of the company’s $16.1 billion revenue).
However, as companies like AbbVie Inc. (NYSE: ABBV) have shown, new and emerging drugs can help offset lost revenue from patent expiration. In the case of AbbVie, Skyrizi, and Rinvoq have helped maintain the company’s lost revenue from its flagship drug, Humira.
That’s why it’s important to look at a company’s pipeline. Merck has more than 80 candidates in Phase 2 trials and 30 in Phase 3 trials. None of these drugs would be a direct replacement for Keytruda, but many will work with Keytruda, which may allow Merck to expand the drug’s addressable market.
About Merck & Co., Inc.
Merck & Co, Inc operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health. The Pharmaceutical segment offers human health pharmaceutical products in the areas of oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes under the Keytruda, Bridion, Adempas, Lagevrio, Belsomra, Simponi, and Januvia brands, as well as vaccine products consisting of preventive pediatric, adolescent, and adult vaccines under the Gardasil/Gardasil 9, ProQuad, M-M-R II, Varivax, RotaTeq, Live Oral, Vaxneuvance, Pneumovax 23, and Vaqta names.
Read More - Current Price
- $101.19
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $129.80 (28.3% Upside)
