Latest news with #MRK
Yahoo
2 days ago
- Business
- Yahoo
MRK Down 21% YTD: Should You Buy, Hold or Sell the Stock?
Merck's MRK shares have lost 21.3% so far this year compared with a decrease of 4.5% for the industry. The stock has also underperformed the sector and the S&P 500 Index, as seen in the chart below. The stock is also trading below its 50-day and 200-day moving averages. Image Source: Zacks Investment Research Though Merck faces several challenges at present, broader macroeconomic uncertainty has also contributed to the stock's decline. Stocks have been on a roller-coaster ride since President Trump unveiled sky-high tariffs in early April and China came up with retaliatory tariffs. Earlier this month, China and the United States struck a deal that eased trade tensions and resulted in a stock market recovery. However, last week, the U.S. president threatened a 50% tariff on all goods imported from the European Union. Though the President has now agreed to extend the deadline to negotiate tariffs with the European Union, it is quite clear that the tariff-related tensions are only on a temporary pause. The uncertainty around tariffs and trade production measures remains, which has muted economic growth. Although pharmaceuticals have been exempted from tariffs in the first round, they could be Trump's target in the next round, considering the President's goal to shift pharmaceutical production back to the United States, primarily from European and Asian countries. Trump and the Republican government also continue to stress on the control of drug prices with the latest attempt being his 'most favored nations' policy.' Let's understand MRK's strengths and weaknesses to better analyze how to play Amgen's stock in the uncertain macro environment. Merck boasts more than six blockbuster drugs in its portfolio, with the blockbuster PD-L1 inhibitor Keytruda being the key top-line driver. Keytruda, approved for several types of cancer, alone accounts for around 50% of the company's pharmaceutical sales. The drug has played an instrumental role in driving Merck's steady revenue growth in the past few years. Keytruda's sales are gaining from rapid uptake across earlier-stage indications, mainly early-stage non-small cell lung cancer. Continued strong momentum in metastatic indications is also boosting sales growth. The company expects continued growth from Keytruda, particularly in early lung cancer. Merck is working on different strategies to drive Keytruda's long-term growth. These include innovative immuno-oncology combinations, including Keytruda with LAG3 and CTLA-4 inhibitors. In partnership with Moderna MRNA, Merck is developing a personalized mRNA therapeutic cancer vaccine (V940/mRNA-4157) in combination with Keytruda for patients with certain types of melanoma and non-small cell lung cancer (NSCLC). Merck and Moderna are conducting pivotal phase III studies on V940, in combination with Keytruda, for earlier-stage and adjuvant NSCLC and adjuvant melanoma. Merck is also developing a subcutaneous formulation of Keytruda that can extend its patent life. It is under review in the United States, and an FDA decision is expected in September. Merck has been making meaningful regulatory and clinical progress across areas like oncology (mainly Keytruda), vaccines and infectious diseases while executing strategic business moves. Merck's phase III pipeline has almost tripled since 2021, supported by in-house pipeline progress as well as the addition of candidates through M&A deals. This has positioned Merck to launch around 20 new vaccines and drugs over the next few years, with many having blockbuster potential. Merck's new 21-valent pneumococcal conjugate vaccine, Capvaxive, and pulmonary arterial hypertension (PAH) drug, Winrevair, have the potential to generate significant revenues over the long term. Both products have witnessed a strong launch. Merck has other promising candidates in its late-stage pipeline, such as enlicitide decanoate/MK-0616, an oral PCSK9 inhibitor for hypercholesterolemia, tulisokibart, a TL1A inhibitor for ulcerative colitis and Daiichi-Sankyo-partnered antibody-drug conjugates. A regulatory application seeking approval for clesrovimab, its respiratory syncytial virus vaccine, is under review in the United States, with an FDA decision expected in June. To foray into the lucrative obesity market, Merck has in-licensed global rights to an investigational oral GLP-1 receptor agonist, HS-10535, from Chinese biotech Hansoh Pharma. Merck is heavily reliant on Keytruda. Though Keytruda may be Merck's biggest strength and a solid reason to own the stock, it can also be argued that the company is excessively dependent on the drug, and it should look for ways to diversify its product lineup. There are rising concerns about the firm's ability to grow its non-oncology business ahead of the upcoming loss of exclusivity of Keytruda in 2028. Also, competitive pressure might increase for Keytruda in the near future. In 2024, Summit Therapeutics SMMT reported positive data from a phase III study (conducted in China by partner Akeso) in patients with locally advanced or metastatic NSCLC, in which its lead pipeline candidate, ivonescimab, a dual PD-1 and VEGF inhibitor, outperformed Keytruda. Summit believes ivonescimab has the potential to replace Keytruda as the next standard of care across multiple NSCLC settings. Sales of Gardasil, which is Merck's second-largest product, are declining due to a weak performance in China, which resulted from sluggish demand trends amid an economic slowdown. Lower demand in China resulted in above-normal channel inventory levels at Merck's commercialization partner in China, Zhifei. Accordingly, Merck decided to temporarily halt shipments of Gardasil in China. At the midpoint of the total revenue guidance for 2025, Merck assumes no further Gardasil shipments to China this year. However, Gardasil sales remain strong in almost every major region outside China, including the United States. Merck is also seeing declining demand for its diabetes products and the generic erosion of some drugs. From a valuation standpoint, Merck appears attractive relative to the industry. Going by the price/earnings ratio, the company's shares currently trade at 8.39 forward earnings, lower than 14.51 for the industry as well as its 5-year mean of 12.93. Image Source: Zacks Investment Research Merck's EPS estimates for both 2025 and 2026 have declined over the past 60 days. Image Source: Zacks Investment Research Merck has one of the world's best-selling drugs in its portfolio, generating billions of dollars in revenues. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then. Merck has its share of headwinds in the form of persistent challenges for Gardasil in China, potential competition for Keytruda and rising competitive and generic pressure on some drugs. All these factors have raised doubts about Merck's ability to navigate the Keytruda loss of exclusivity period successfully. Consistently declining estimates reflect analysts' pessimistic outlook for the stock. However, Merck's new products, Capvaxive and Winrevair, are witnessing strong launches and have the potential to generate significant revenues over the long term. The company also has a promising pipeline. Interestingly, on its first-quarter conference call in April, Merck said it believes the potential impact of additional tariffs on pharmaceutical imports is manageable. Merck believes that its global supply chain and inventory levels can help manage the impact of tariffs in the short term. We believe investors with a long-term horizon should stay invested in this Zacks Rank #3 (Hold) stock due to its strong fundamentals, a promising pipeline and potential strong sales from its new products. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report Summit Therapeutics PLC (SMMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
MRK Down 21% YTD: Should You Buy, Hold or Sell the Stock?
Merck 's MRK shares have lost 21.3% so far this year compared with a decrease of 4.5% for the industry. The stock has also underperformed the sector and the S&P 500 Index, as seen in the chart below. The stock is also trading below its 50-day and 200-day moving averages. Merck Stock Underperforms Industry, Sector & S&P 500 Though Merck faces several challenges at present, broader macroeconomic uncertainty has also contributed to the stock's decline. Stocks have been on a roller-coaster ride since President Trump unveiled sky-high tariffs in early April and China came up with retaliatory tariffs. Earlier this month, China and the United States struck a deal that eased trade tensions and resulted in a stock market recovery. However, last week, the U.S. president threatened a 50% tariff on all goods imported from the European Union. Though the President has now agreed to extend the deadline to negotiate tariffs with the European Union, it is quite clear that the tariff-related tensions are only on a temporary pause. The uncertainty around tariffs and trade production measures remains, which has muted economic growth. Although pharmaceuticals have been exempted from tariffs in the first round, they could be Trump's target in the next round, considering the President's goal to shift pharmaceutical production back to the United States, primarily from European and Asian countries. Trump and the Republican government also continue to stress on the control of drug prices with the latest attempt being his 'most favored nations' policy.' Let's understand MRK's strengths and weaknesses to better analyze how to play Amgen's stock in the uncertain macro environment. Keytruda: Merck's Biggest Strength Merck boasts more than six blockbuster drugs in its portfolio, with the blockbuster PD-L1 inhibitor Keytruda being the key top-line driver. Keytruda, approved for several types of cancer, alone accounts for around 50% of the company's pharmaceutical sales. The drug has played an instrumental role in driving Merck's steady revenue growth in the past few years. Keytruda's sales are gaining from rapid uptake across earlier-stage indications, mainly early-stage non-small cell lung cancer. Continued strong momentum in metastatic indications is also boosting sales growth. The company expects continued growth from Keytruda, particularly in early lung cancer. Merck is working on different strategies to drive Keytruda's long-term growth. These include innovative immuno-oncology combinations, including Keytruda with LAG3 and CTLA-4 inhibitors. In partnership with Moderna MRNA, Merck is developing a personalized mRNA therapeutic cancer vaccine (V940/mRNA-4157) in combination with Keytruda for patients with certain types of melanoma and non-small cell lung cancer (NSCLC). Merck and Moderna are conducting pivotal phase III studies on V940, in combination with Keytruda, for earlier-stage and adjuvant NSCLC and adjuvant melanoma. Merck is also developing a subcutaneous formulation of Keytruda that can extend its patent life. It is under review in the United States, and an FDA decision is expected in September. MRK's Pipeline Progress & Strategic M&A Deals Merck has been making meaningful regulatory and clinical progress across areas like oncology (mainly Keytruda), vaccines and infectious diseases while executing strategic business moves. Merck's phase III pipeline has almost tripled since 2021, supported by in-house pipeline progress as well as the addition of candidates through M&A deals. This has positioned Merck to launch around 20 new vaccines and drugs over the next few years, with many having blockbuster potential. Merck's new 21-valent pneumococcal conjugate vaccine, Capvaxive, and pulmonary arterial hypertension (PAH) drug, Winrevair, have the potential to generate significant revenues over the long term. Both products have witnessed a strong launch. Merck has other promising candidates in its late-stage pipeline, such as enlicitide decanoate/MK-0616, an oral PCSK9 inhibitor for hypercholesterolemia, tulisokibart, a TL1A inhibitor for ulcerative colitis and Daiichi-Sankyo-partnered antibody-drug conjugates. A regulatory application seeking approval for clesrovimab, its respiratory syncytial virus vaccine, is under review in the United States, with an FDA decision expected in June. To foray into the lucrative obesity market, Merck has in-licensed global rights to an investigational oral GLP-1 receptor agonist, HS-10535, from Chinese biotech Hansoh Pharma. MRK's Keytruda Faces Patent Expiration in 2028 Merck is heavily reliant on Keytruda. Though Keytruda may be Merck's biggest strength and a solid reason to own the stock, it can also be argued that the company is excessively dependent on the drug, and it should look for ways to diversify its product lineup. There are rising concerns about the firm's ability to grow its non-oncology business ahead of the upcoming loss of exclusivity of Keytruda in 2028. Also, competitive pressure might increase for Keytruda in the near future. In 2024, Summit Therapeutics SMMT reported positive data from a phase III study (conducted in China by partner Akeso) in patients with locally advanced or metastatic NSCLC, in which its lead pipeline candidate, ivonescimab, a dual PD-1 and VEGF inhibitor, outperformed Keytruda. Summit believes ivonescimab has the potential to replace Keytruda as the next standard of care across multiple NSCLC settings. Declining Sales of MRK's Gardasil in China Sales of Gardasil, which is Merck's second-largest product, are declining due to a weak performance in China, which resulted from sluggish demand trends amid an economic slowdown. Lower demand in China resulted in above-normal channel inventory levels at Merck's commercialization partner in China, Zhifei. Accordingly, Merck decided to temporarily halt shipments of Gardasil in China. At the midpoint of the total revenue guidance for 2025, Merck assumes no further Gardasil shipments to China this year. However, Gardasil sales remain strong in almost every major region outside China, including the United States. Merck is also seeing declining demand for its diabetes products and the generic erosion of some drugs. MRK Valuation & Estimates From a valuation standpoint, Merck appears attractive relative to the industry. Going by the price/earnings ratio, the company's shares currently trade at 8.39 forward earnings, lower than 14.51 for the industry as well as its 5-year mean of 12.93. MRK Stock Valuation Image Source: Zacks Investment Research Merck's EPS estimates for both 2025 and 2026 have declined over the past 60 days. MRK Estimate Movement Stay Invested in MRK Stock Merck has one of the world's best-selling drugs in its portfolio, generating billions of dollars in revenues. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then. Merck has its share of headwinds in the form of persistent challenges for Gardasil in China, potential competition for Keytruda and rising competitive and generic pressure on some drugs. All these factors have raised doubts about Merck's ability to navigate the Keytruda loss of exclusivity period successfully. Consistently declining estimates reflect analysts' pessimistic outlook for the stock. However, Merck's new products, Capvaxive and Winrevair, are witnessing strong launches and have the potential to generate significant revenues over the long term. The company also has a promising pipeline. Interestingly, on its first-quarter conference call in April, Merck said it believes the potential impact of additional tariffs on pharmaceutical imports is manageable. Merck believes that its global supply chain and inventory levels can help manage the impact of tariffs in the short term. We believe investors with a long-term horizon should stay invested in this Zacks Rank #3 (Hold) stock due to its strong fundamentals, a promising pipeline and potential strong sales from its new products. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Merck & Co., Inc. (MRK): Free Stock Analysis Report Moderna, Inc. (MRNA): Free Stock Analysis Report Summit Therapeutics PLC (SMMT): Free Stock Analysis Report
Forbes
2 days ago
- Business
- Forbes
Should You Buy MRK Stock At $80?
INDIA - 2025/05/20: In this photo illustration, a MERCK logo is seen displayed on a smartphone and ... More in the background. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images) Merck (NYSE:MRK) stock has experienced a significant 22% decline this year, sharply underperforming the broader S&P 500 index, which is down only 1%. This downturn can be attributed to several factors: a lowered guidance for 2025 and growing concerns about the long-term growth prospects of its blockbuster drugs, Keytruda and Gardasil. Specifically, weak sales of Gardasil in China, a critical market for the vaccine, have unsettled investors. Furthermore, Keytruda is nearing the end of its market exclusivity period in 2028, raising questions about future revenue. Despite these near-term concerns, we believe the negatives might already be priced into Merck's stock. While challenges exist, the company's current valuation appears very low. We've reached this conclusion by analyzing Merck's current valuation against its recent operating performance and its historical and current financial health. Our assessment of Merck across key parameters—Growth, Profitability, Financial Stability, and Downturn Resilience—indicates that the company possesses strong operating performance and financial condition. However, for investors who seek lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative - having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Going by what you pay per dollar of sales or profit, MRK stock looks cheap compared to the broader market. Merck's Revenues have grown marginally over recent years. Merck's profit margins are much higher than most companies in the Trefis coverage universe. Merck's balance sheet looks fine. MRK stock has seen an impact that was slightly better than the benchmark S&P 500 index during some of the recent downturns. Worried about the impact of a market crash on MRK stock? Our dashboard How Low Can Merck Stock Go In A Market Crash? has a detailed analysis of how the stock performed during and after previous market crashes. In summary, Merck's performance across the parameters detailed above are as follows: • Growth: Neutral • Profitability: Very Strong • Financial Stability: Neutral • Downturn Resilience: Strong • Overall: Strong Considering Merck's very low valuation and its strong performance across key financial and operational parameters, we believe MRK stock is an attractive buy. However, it's crucial for investors to acknowledge the inherent risks. As seen during the 2008 financial crisis, MRK stock plummeted over 65% from its peak, demonstrating its susceptibility to significant downturns. Current concerns also include the potential for continued declines in Gardasil sales and a slowdown in Keytruda's sales growth as it approaches patent expiry. Should these scenarios materialize, MRK stock could experience further declines. While we view Merck's current valuation as compelling, investors should thoroughly weigh these risks against the potential upside. While MRK stock looks promising, investing in a single stock can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
Yahoo
16-05-2025
- Business
- Yahoo
Harvard on Fire: Ackman Demands Entire Board Resign in Explosive Showdown
Bill Ackman (Trades, Portfolio)'s not letting up. The Pershing Square boss just lit another fire under Harvard Corp., calling for the entire board to resign. Why? In his view, they've overseen the slow-motion collapse of a once-revered institution. He blasted the university's leadership on X, saying only a total overhaul can fix what's broken. This follows fresh allegations from conservative activist Christopher Rufo, who claims Harvard may have crossed legal lines with race-based hiringa claim that's landed right as the school wrestles with the U.S. government over frozen federal funding. Warning! GuruFocus has detected 3 Warning Sign with MRK. The spotlight now shifts to Penny Pritzker, chair of the Harvard Corp. and former U.S. Commerce Secretary. Ackman's made her the new face of Harvard's dysfunctionaccusing her of mismanaging finances, botching relations with D.C., and letting antisemitism fester on campus. His campaign already helped oust former president Claudine Gay. But even with Alan Garber now leading the school, Ackman says nothing meaningful will change unless the boardloaded with finance and pharma heavyweights like KKR & Co. (NYSE:KKR) co-CEO Joseph Bae and former Merck (NYSE:MRK) CEO Kenneth Fraziersteps down. This isn't just ivory tower drama. Harvard's endowment, its ties to powerful public companies, and its increasingly politicized brand could become collateral damage. Investors may start paying closer attention to how boardroom reputations, governance standards, and elite institutions intersectespecially when a high-profile activist like Ackman brings the heat. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Jefferies not seeing significant impact to Merck, Bristol from draft guidance
Jefferies analyst Akash Tewari notes that new Medicare Part B & D draft guidance has been released and that Merck (MRK) and Bristol Myers (BMY) are trading down due to updated language on single source qualifying drugs. The updated language on single source qualifying fixed dose combo products in the draft makes it seem as if subcutaneous Keytruda/Opdivo will be eligible for negotiation in 2028, but 'We're not sure this is true,' says the analyst, who is not seeing a significant impact to Merck and Bristol. The firm thinks subQ Keytruda/Opdivo may be exempt from IRA negotiation on biosimilar entry, similar to HD Eylea, and believes changes may create an opening for Merck to settle with some biosimilars before Keytruda's '28 loss of exclusivity and 'therefore be EXCLUDED from IRA negotiation.' Since subQ and IV Keytruda are now both 'considered the same drug,' theoretically subQ Keytruda 'may never get IRA negotiated,' the analyst added. Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on MRK: Disclaimer & DisclosureReport an Issue UnitedHealth, Wayfair downgraded: Wall Street's top analyst calls SCHD ETF News, 5/14/2025 U.S. biotech companies debate relocating trials outside U.S., Reuters reports Merck downgraded to Neutral from Buy at Citi Merck & Company: Navigating Medicare Drug Price Negotiation Challenges with Potential Upside
