Latest news with #Merck&Co
Time of India
a day ago
- Business
- Time of India
Merck to cut jobs and costs as demand for Gardasil in China remains weak
Drugmaker Merck & Co on Tuesday announced job and cost cuts it said will save $3 billion a year as it posted lower second-quarter results due to continuing weak demand for its Gardasil vaccine in China. The company said the cost cuts include $1.7 billion in annual savings from the elimination of certain administrative, sales and R&D positions. It also plans to reduce its global real estate footprint and optimize its manufacturing network. Explore courses from Top Institutes in Please select course: Select a Course Category Product Management CXO Public Policy Design Thinking Others MBA Management Digital Marketing Healthcare others Data Science Leadership Artificial Intelligence MCA PGDM Data Science Finance healthcare Degree Technology Cybersecurity Operations Management Project Management Skills you'll gain: Product Strategy & Roadmapping User-Centric Product Design Agile Product Development Market Analysis & Product Launch Duration: 24 Weeks Indian School of Business Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Chief Executive Rob Davis said in a press release that the moves "will redirect investment and resources from more mature areas of our business to our burgeoning array of new growth drivers." The company expects to achieve the full $3 billion in annual savings by the end of 2027. Investors have been concerned about where Merck will replace revenue from its blockbuster cancer treatment Keytruda - the world's best-selling drug, which is set to lose patent protection toward the end of the decade. Gardasil's problems in China have also been a drag on the company's results. Live Events Merck said it earned $5.4 billion, or $2.13 a share, in the quarter , down from $5.8 billion, or $2.28 a share, a year earlier. Analysts, on average, had forecast earnings of $2.01 a share. Merck's quarterly R&D costs were lower than expected. Revenue in the quarter was $15.8 billion, down from $16.1 billion a year earlier. Analysts, on average, were expecting revenue of $15.9 billion. Gardasil sales missed already weak Wall Street estimates. The company said it sold $1.1 billion of the vaccine, which prevents cancer caused by the human papillomavirus, down 55% from a year ago. Analysts had been expecting $1.3 billion of Gardasil sales in the quarter. Merck paused shipments of Gardasil to China in January. It said the decline was primarily in China, but lower demand in Japan had hurt sales as well. Sales of Keytruda rose 9% to just under $8 billion in the quarter, topping analyst forecasts of $7.9 billion. The company, which announced a $10 billion takeover of UK-based Verona Pharma earlier in July, narrowed its full-year revenue forecast to a range of $64.3 billion to $65.3 billion. It had previously forecast revenue of $64.1 billion to $65.6 billion for the year. It now expects to earn $8.87 to $8.97 a share in 2025. Analysts had forecast 2025 earnings to be $8.87.
Japan Today
16-07-2025
- Health
- Japan Today
Japan discards state-acquired COVID-19 drugs worth ¥240 billion
The government discarded COVID-19 oral medicines believed to be worth around 240 billion yen in the fiscal year through March as they had passed their expiry dates, health ministry officials said Wednesday. While the exact purchase price remains unclear, the value was calculated in accordance with current prices. The amount is enough to treat some 2.5 million people. The government acquired the oral drugs at the height of the coronavirus pandemic and provided them free of charge to hospitals and clinics nationwide. But many of them were unused after COVID-19 was downgraded to the same category as seasonal influenza in May 2023, which required people to pay for COVID-19 treatment. Drugmakers had also started general distribution of COVID-19 medicine in Japan themselves. A Ministry of Health, Labor and Welfare official said offering the drugs to other countries was considered but legally difficult. Among the 2 million doses of Pfizer Inc's nirmatrelvir and 1.6 million doses of Merck & Co's molnupiravir procured by the government, about 1.75 million doses of nirmatrelvir and some 780,000 doses of molnupiravir were disposed of, according to the ministry. The government also secured 2 million doses of Shionogi & Co's ensitrelvir but about 1.77 million of them are unused, the ministry said. They are expected to be discarded after they reach their expiration dates starting next fiscal year. © KYODO
Business Insider
15-07-2025
- Business
- Business Insider
Merck Stock (MRK) Bulls Cheer $10Bn Verona Pharma Gamble
Merck & Co. (MRK) is betting on acquisitions to offset the looming revenue loss from the upcoming patent expiration of Keytruda (pembrolizumab). Its latest move— the $10 billion acquisition of Verona Pharma (VRNA) —adds a promising blockbuster candidate for Chronic Obstructive Pulmonary Disease (COPD), a market worth an estimated $23 billion. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. By broadening its pipeline beyond oncology, Merck aims to regain investor confidence, especially as its stock has lagged behind the broader market in recent years. In my view, Merck's latest bet is likely to pay off, making me cautiously Neutral about its stock ahead of Keytruda's 2028 primary U.S. patent expiration date. The 'Keytruda Cliff' Represents Merck's Greatest Challenge Merck's biggest challenge is no secret—the looming patent expiration of Keytruda is the clearest example of the broader 'patent cliff' many pharmaceutical giants face. We're talking about blockbuster drugs generating over $10 billion annually, like Eliquis, Stelara, and Humira. In Merck's case, Keytruda brought in $29.5 billion last year —nearly half of the company's total revenue of $64.17 billion. That level of dependence makes the eventual decline in Keytruda sales a major concern. Given that Keytruda is a biologic, the impact of biosimilar competition tends to be less abrupt than with traditional generics. Analysts expect sales to decline more gradually, potentially falling to around $15 billion within four to five years of the patent's expiration. Still, declining revenue is never a good look for a company, and Merck now faces the critical task of replacing that lost income. One part of Merck's strategy is to introduce a subcutaneous version of pembrolizumab, which offers the convenience of shorter treatment times for both patients and healthcare providers. If it proves to be as effective as the intravenous version, it could gain traction for its ease of use. However, while this could help extend Keytruda's commercial life, it's unlikely to fully bridge the revenue gap. Payers may not be willing to pay a premium for convenience alone, especially once lower-cost biosimilars hit the market. Merck Bets Big on Ohtuvayre as It Looks Beyond Keytruda As part of its broader strategy, Merck is also leaning heavily on acquisitions and promising pipeline assets. Its recent interest in Verona Pharma's Ohtuvayre came as little surprise. Approved by the FDA in June 2024, Ohtuvayre has quickly gained traction. It's considered a 'first-in-class' treatment for COPD, uniquely combining non-steroidal anti-inflammatory effects with bronchodilation in a single molecule—an important innovation, given that many COPD patients continue to struggle with symptoms despite multiple existing therapies. In the first quarter of 2025, Ohtuvayre generated $71.3 million in sales, beating analyst expectations. Forecasts now suggest the drug could achieve peak annual sales of over $4 billion. In addition, it's being explored for other respiratory conditions, including non-cystic fibrosis bronchiectasis and asthma, potentially broadening its commercial impact even further. Further Strategic Acquisitions Bolster Merck's Pipeline Before Verona, Merck had been active in expanding its pulmonary and oncology portfolio. Think back to the $11.5 billion purchase of Acceleron Pharma in 2021 for its pulmonary arterial hypertension therapy, Winrevair. This asset generated $419 million in sales last year. In another example, Merck's more recent $680 million acquisition of Harpoon Therapeutics bolstered its immunotherapy pipeline. That's the nature of big pharmaceutical companies like Merck—blockbuster drugs eventually run their course. The real challenge is building a sustainable 'flywheel effect,' where profits from a hit like Keytruda are reinvested into developing the next wave of blockbuster therapies. When internal R&D falls short, companies often turn to acquisitions—but that's typically a more expensive route. For instance, developing a drug like Ohtuvayre in-house would likely have cost Merck a fraction—perhaps less than 10%—of the $10 billion it paid to acquire Verona Pharma. That said, Merck has the financial flexibility to make such moves. With a debt-to-assets ratio near historical lows, the company is well-positioned to pursue strategic investments without overextending itself. Judging by its Price-to-Earnings (P/E) ratio of just 12.2, which trades 55% lower than its sector median (26.98), the market isn't confident in Merck's ability to replace Keytruda. This is, at least in part, owed to Merck's underwhelming near-term revenue growth prospects. Its forward year-over-year revenue growth of 4.4% is 45% lower than the sector median of 8%. Certainly, Merck's ability to resolve these 'growing pains' will determine the future direction of its stock. Is Merck a Buy, Sell, or Hold? On Wall Street, Merck sports a Moderate Buy consensus rating based on 10 Buy, seven Hold, and zero Sell ratings in the past three months. MRK's average stock price target of $103.60 implies an upside potential of almost 24% over the next twelve months. Last week, analyst Terence Flynn from Morgan Stanley issued a Hold rating on MRK with a price target of $98. Regarding Ohtuvayre's immediate and long-term impact on Merck's financials, the analyst noted that 'The company expects the acquisition to become accretive to earnings by 2027, and fully accretive by 2028.' The strategic fit of Ohtuvayre within Merck's existing cardio-pulmonary portfolio and the potential for synergies further support the Hold rating, as the long-term benefits are balanced by the short-term financial adjustments required.' Bold $10Bn Bet on Verona Isn't Enough to Dislodge Neutral Outlook Merck's acquisition of Verona Pharma is part of its broader strategy to offset the looming revenue hit from Keytruda's patent expiration. While Ohtuvayre offers a promising blockbuster opportunity with relatively low development risk, it came at a steep price, making the deal something of a double-edged sword, especially since the drug's long-term success is not guaranteed. That said, Merck's current valuation suggests the market may be underestimating its potential. For investors who believe in the upside of recent initiatives—like the launch of subcutaneous pembrolizumab and the addition of Ohtuvayre—this skepticism could represent an opportunity. In the meantime, Merck's solid 3.86% dividend yield offers a cushion if the stock continues to lag. Neutral.
Yahoo
16-06-2025
- Health
- Yahoo
MSD begins Phase III trial of dengue vaccine
Merck & Co (MSD) has initiated the randomised MOBILIZE-1 Phase III trial to assess the immunogenicity, efficacy, and safety of the investigational quadrivalent vaccine, V181, designed to prevent dengue disease. The disease is caused by any of the four serotypes: DENV-1, DENV-2, DENV-3, and DENV-4. Also referred to as V181-005, the study has started enrolling its first subjects in Singapore. The placebo-controlled, double-blind trial aims to enrol approximately 12,000 healthy individuals aged two to 17 years old. They will be randomised and given either a single dose of the vaccine or a placebo. More than 30 trial sites across dengue endemic regions in the Asia-Pacific, including Indonesia, the Philippines, Singapore, Thailand and Vietnam, are planned to be part of the trial. The trial's primary goal is to determine the efficacy and safety of a single dose of the vaccine in preventing symptomatic virologically confirmed dengue (VCD) of any severity, caused by any dengue serotype, and without consideration of previous dengue exposure. A key secondary efficacy endpoint is the evaluation of V181's ability to prevent symptomatic VCD caused by each serotype. Additional secondary goals of the trial include the assessment of V181 in preventing symptomatic VCD with severe VCD, warning signs, and hospitalisation due to dengue. The live attenuated quadrivalent vaccine is intended to be administered in one dose. MSD Research Laboratories' global clinical development infectious diseases and vaccines senior vice-president Dr Paula Annunziato said: 'Approximately half of the world's population lives in areas with a risk for dengue, making it a serious public health threat. 'The initiation of the MOBILIZE-1 study, the first Phase III trial in our clinical development programme, marks a key milestone in our work to help address this widespread mosquito-borne disease. 'If successful, V181 could provide an important single-dose option for at-risk populations, regardless of previous exposure to dengue, to help reduce the significant burden around the globe.' MSD's investigational KRAS G12C inhibitor has recently shown signs of anti-tumour activity when used both alone and in combination with other oncology drugs. "MSD begins Phase III trial of dengue vaccine" was originally created and published by Clinical Trials Arena, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Time of India
02-06-2025
- Business
- Time of India
Bristol Myers agrees up to $11.1 billion deal with BioNTech to shake up cancer immunotherapy
Bristol Myers Squibb has agreed to pay up to $11.1 billion to partner with Germany's BioNTech and develop the latter's next-generation cancer immunotherapy, which could take on rival Merck & Co's best-selling drug Keytruda. The deal, which includes $3.5 billion in unconditional payments, underpins BioNTech's ambition to continue a costly long-term focus on experimental cancer treatments and show that its success as Pfizer 's COVID-19 vaccine partner was not a one-off achievement. It also underscores a push across the pharma sector to master a new dual mechanism of action in oncology that activates the immune system - similar to an established drug class including Merck & Co's Keytruda - but which also cuts a tumour's blood supply. BioNTech's German-listed shares surged 16.7% by 1236 GMT to a six-week high. The two companies said in separate statements that the U.S. group will co-develop and co-commercialize BioNTech's drug, BNT327, for multiple solid tumour types. Live Events BioNTech's CEO and co-founder Ugur Sahin said the collaboration will serve "to accelerate and broadly expand BNT327's development to fully realize its potential." The companies said in presentation slides that Bristol Myers was bringing global networks in clinical development and manufacturing to the partnership, among other benefits. BioNTech said in a statement that the partners were seeking to set a new standard of care in the cancer market segment, now dominated by so-called checkpoint inhibitors including Keytruda with $29.5 billion in 2024 sales. Western drugmakers have struck a host of deals to win access to the new drug technology, known as PD-1/VEGF bispecific antibodies, which was pioneered in China. Pfizer last month partnered with China's 3SBio , paying $1.25 billion upfront and up to another $4.8 billion depending on developmental achievements. Merck & Co, whose Keytruda business is under threat from the sector's development push, in November last year licensed an early-stage cancer drug from China-based LaNova Medicines for up to $3.3 billion. "We are now starting to see an industry vote of confidence in the differentiation of this novel mechanism," BMO Capital Markets analysts said in a note. They welcomed BioNTech "partnering with a big pharma name to help manage a broad development plan and potential commercialization". Shares in Instil Bio, which is working with China's ImmuneOnco on a similar compound, soared 24% in U.S. trade on Monday. Summit Therapeutics and China's Akeso have formed another partnership in the development race with a drug candidate called ivonescimab. BioNTech took full ownership of BNT327 through the acquisition of China's Biotheus earlier this year for $800 million upfront and up to $150 million contingent on development achievements. It previously held certain rights in the drug under a 2023 collaboration deal. In addition to an initial payment of $1.5 billion, Bristol plans to pay BioNTech $2 billion in non-contingent anniversary payments through 2028. BioNTech may also earn up to $7.6 billion in development, regulatory and commercial milestones, Bristol said. The companies will share global profits and losses from the drug equally, and joint development and manufacturing costs will also be shared on a 50/50 basis, with some exceptions. BNT327 is being tested as a first-line treatment in extensive stage small cell lung cancer and non-small cell lung cancer. More than 1,000 patients have been treated with the drug to date. Economic Times WhatsApp channel )
