Latest news with #Merck&Co.Inc
Yahoo
29-07-2025
- Business
- Yahoo
Merck CEO Sees Minimal EU Tariffs Impact, Warns Of Gardasil Challenges
Merck & Co. Inc. (NYSE:MRK) shares fell over 6% in early trading Tuesday after the pharmaceutical giant reported a mixed second-quarter earnings picture, with adjusted earnings surpassing analyst consensus but overall sales experiencing a slight year-over-year decline and missing revenue expectations. The market's cautious reaction underscores investor scrutiny of the company's performance, particularly a significant drop in Gardasil vaccine sales, even as its blockbuster cancer drug Keytruda continued its strong growth trajectory. While adjusted earnings per share (EPS) of $2.13 surpassed consensus estimates of $2.04, it marked a decline from the $2.28 reported in the prior-year period. Similarly, total sales of $15.81 billion, a 2% year-over-year decrease, narrowly missed analysts' projections of $15.94 pharmaceutical segment recorded $14.1 billion in sales, down 2% year over year, primarily due to vaccines and immunology, partially offset by growth in oncology and cardiology. Keytruda, an immunotherapy for cancer, delivered $7.96 billion in global sales, up 9% year-over-year, reflecting continued uptake across more cancer types and earlier treatment stages. However, GARDASIL and GARDASIL 9, vaccines to prevent HPV-related diseases, generated $1.1 billion in sales, down 55% compared to last year. The company cited lower demand in China. Excluding China, sales declined 3%, or 4% excluding the impact of foreign exchange, reflecting lower demand in Japan following a national catch-up immunization program, as well as the timing of public-sector purchases in certain international markets. U.S. sales increased 2% in the quarter. The diabetes franchise, led by JANUVIA and JANUMET, remained mostly flat at around $623 million, with a slight 1% sales decrease. Newer products, including Winrevair sales, a therapy for pulmonary arterial hypertension (a rare heart-lung condition), saw accelerated sales since its launch, reaching $336 million compared to $70 million a year ago. CAPVAXIVE, a 21-valent pneumococcal conjugate vaccine, saw $129 million in sales, representing continued uptake since the third-quarter 2024 launch in the U.S. View more earnings on MRK Animal Health sales increased 11% to $1.65 billion, primarily due to higher demand for Livestock products, the inclusion of sales from the Elanco aqua business acquired in July 2024, higher pricing, and improved supply. Restructuring Program Merck launched a new multiyear optimization initiative to enable the transformation of its portfolio by generating an expected $3.0 billion in annual cost savings. The company anticipates cumulative pretax costs related to the program to be approximately $3.0 billion. For the second quarter of 2025, the company recorded charges in its GAAP results of $649 million related to this restructuring program. Merck expects the actions under the restructuring program to result in annual cost savings of approximately $1.7 billion, which will be substantially realized by the end of 2027. This restructuring program is part of the multiyear optimization initiative expected to achieve $3.0 billion in annual cost savings by the end of 2027. Manufacturing and R&D Investment Merck continued to make long-term investments in its U.S. manufacturing and R&D capabilities, including the start of construction for a $1.0 billion, 470,000-square-foot state-of-the-art biologics center in Wilmington, Delaware, which will serve as a launch and commercial production facility and the primary U.S. manufacturing site for Keytruda. In addition, the company announced an $895 million expansion of its Animal Health manufacturing facility in De Soto, Kansas, to increase capacity for Animal Health vaccines and biologic products. Guidance Merck raises its fiscal 2025 adjusted earnings guidance from $8.82-$8.97 to $8.87-$8.97 compared to the consensus estimate of $8.90. The company also narrowed its 2025 sales guidance from $64.1 billion-$65.6 billion to $64.3 billion-$65.3 billion versus the consensus of $65.01 billion. The $200 million of costs previously included in the company's financial outlook related to the impact of tariffs is unchanged pending the outcome of additional potential government actions. During the earnings conference call, Merck's CEO addressed the potential impact of EU tariffs, stating that immediate implementation would have a minimal effect on 2025 results. However, the timing of these tariffs and their connection to the Section 232 investigation remain unclear. Simultaneously, Merck revealed it will not resume Gardasil shipments to China through at least the end of this year. This decision comes as Gardasil channel inventories in China remain elevated and demand continues to be soft. Furthermore, the company anticipates that Japan will experience a 'more significant headwind' in terms of growth for Gardasil in the second half of the year. Price Action: MRK stock is trading lower by 6.19% to $78.86 at last check Tuesday. Read Next:Photo by Tada Images via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? MERCK & CO (MRK): Free Stock Analysis Report This article Merck CEO Sees Minimal EU Tariffs Impact, Warns Of Gardasil Challenges originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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The Hill
09-07-2025
- Business
- The Hill
Merck spends $10 billion for Verona, gaining access to its COPD medication
Pharmaceutical giant Merck is buying Verona Pharma, a company that focuses on respiratory diseases, in an approximately $10 billion deal. The deal gives Merck access to Verona Pharma's new chronic obstructive pulmonary disease medication Ohtuvayre. U.S. regulators approved the inhaled medication more than a year ago to treat chronic obstructive pulmonary disease, or COPD, in adults. 'Ohtuvayre complements and expands our pipeline and portfolio of treatments for cardiopulmonary diseases while delivering near- and long-term growth as well as value for shareholders,' Merck & Co. Inc. Chairman and CEO Robert Davis said in a statement. Verona CEO David Zaccardelli added that Merck's commercial reach can help Ohtuvayre reach more COPD patients. COPD is a progressive disease that can cause shortness of breath, coughing and other problems that make it hard to breathe, according to the National Institutes of Health. It is caused by damage to the airways or other parts of the lung and affects more than 14 million adults in the United States. Ohtuvayre was launched last August as the first commercial product for London-based Verona Pharma. The drug also is being studied as a possible treatment for another chronic respiratory problem that gets worse over time: non-cystic fibrosis bronchiectasis. Merck plans to pay $107 for each Verona Pharma American Depository Share, which represents eight of the company's ordinary shares. The deal announced Wednesday has been approved by the boards of both companies and is expected to close in the fourth quarter. But it still needs Verona Pharma shareholder approval and sanction by the High Court of Justice of England and Wales. Shares of Rahway, New Jersey-based Merck climbed 25 cents to $81.63 before markets opened Wednesday.
Yahoo
30-04-2025
- Business
- Yahoo
Is Merck & Co. Inc. (MRK) the Best Dow Stock for the Next 12 Months?
We recently published a list of . In this article, we are going to take a look at where Merck & Co. Inc. (NYSE:MRK) stands against other best and worst dow stocks for the next 12 months. The Dow Jones Industrial Average (DJIA), or the Dow, is a price-weighted index that has long been seen as a barometer of the health of the U.S. economy. After touching all-time highs in late November 2024, the index has corrected nearly 7% in 2025 (as of April 23) and is down 12% from its highs. Rightly so, the correction reflects several unfavourable developments, including economic uncertainties and geopolitical tensions weighing on economic growth. The market is expected to remain volatile as the trade and other aspects of the US administration's policy agenda play out. Amid this volatility, based on the potential for share price appreciation in the next 12 months, we have created a selection of the best and worst Dow stocks from the 30 Dow constituent stocks. If we analyse its trackable history from 1899, the Dow has fallen 7% or more on a single day twenty times. Of those, only seven occurred after the year 2000, and the 5.5% decline on April 5, 2025, doesn't count as one of those seven, or not even in the historical top twenty. So, technically, this correction was not as severe as earlier. From corrections post 2000, the sharp declines when Covid-19 struck were the most noticeable – Dow fell 7.8%, 10%, and 12% on 9, 12, and 16th March, respectively, and saw further significant declines in that year. That said, the current period remains one of the most confusing times for market participants, even for the larger players in the equity market, who remain uncertain about their estimates for the broader markets, such as the Dow. In a recent interview, Lauren Goodwin, Chief Market Strategist at New York Life Investments, emphasized that the fundamental picture remains cloudy and investors are still looking for clarity in macroeconomic fundamentals. Despite some positive economic data recently, policy uncertainty is limiting visibility. As more data is released, she believes markets are entering a sustained period of elevated volatility across equities and fixed income. In these testing times, investors should examine fundamentals more critically, preferring Dow stocks with earnings resilience, clear competitive advantages, and exposure to long-term, secular growth themes. On April 28, Stephanie Link, Hightower Advisors' chief investment strategist, shared her positive outlook on the stock market in an interview on CNBC. With major tech companies, consumer, and financial companies set to announce results, she believes that if corporate earnings remain strong, the recent market rebound could continue. Since early April, the market has recovered significantly, and she attributed the rally to better-than-expected profit margins and steady corporate performance. Although the prominent tech names aren't cheap in terms of valuation, she views the recent declines as long-term buying opportunities. While markets may remain volatile in the coming months, the best opportunities in the Dow over the next 12 months should come from stocks with strong pricing power and earnings momentum. Investors should stick to stocks with strong brands, recurring revenue models, and competitive moats, which enable them to navigate macro uncertainty. Since the Dow comprises large-cap companies across various industries, these stocks might perform better during sell-offs. To identify the best and worst Dow stocks, we began with the 30 constituent stocks of the DJIA Index. We then ranked these stocks in ascending order based on the consensus 1-year median potential upside. Additionally, we also include data on hedge funds holding stakes in these stocks, utilizing Insider Monkey's Q4 2024 hedge fund database to provide deeper insights into institutional investor trends. It is important to note here that the terms 'best' and 'worst' refer strictly to the relative upside potential and do not imply any fundamental strengths or weaknesses of the underlying are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here). A close-up of a person's hand holding a bottle of & Co. Inc. (NYSE:MRK) is a global pharmaceutical company known for its innovations in vaccines, oncology, infectious diseases, and animal health products. The company's blockbuster drugs, including Keytruda and Gardasil, contribute significantly to its revenue growth. In its Q1 2025 earnings results on April 24, the company reported quarterly revenue of $15.5 billion and adjusted EPS of 2.22, which came in 2%-4% ahead of street expectations. Revenue for its GARDASIL product decreased 41% due to lower demand from China, which led to total revenue falling 2% year over year. The company maintained its 2025 revenue guidance of $64.1-$65.6 billion and guided the adjusted EPS to be between $8.82 and $8.97. While there are near-term challenges, analysts see it as a fundamentally stronger company, and the consensus opinion on the stock remains broadly positive with substantial upside potential. As evidence, Leerink Partners analyst Daina Graybosch reiterated a Buy rating on the stock on April 25. The analyst was encouraged by the company's efforts to localize its manufacturing and focus on inventory buildup to offset pressures from potential tariffs. Merck & Co. Inc.'s (NYSE:MRK) strong pipeline and success in recent trials should keep investors positive, despite concerns over the Keytruda 2028 loss-of-exclusivity. Therefore, the analyst maintained his optimistic view. Overall, MRK ranks 5th on our list of best and worst dow stocks for the next 12 months. While we acknowledge the potential of Dow stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Merck & Co. Inc. (MRK): Among the High Growth Forever Dividend Stocks to Invest In
We recently published a list of the . In this article, we are going to take a look at where Merck & Co. Inc. (NYSE:MRK) stands against other high growth forever dividend stocks. Dividend stocks have trailed the broader market over the past two years, largely due to investors favoring AI-focused companies. Still, experienced investors recognize the long-term value of dividend-paying stocks, supported by their strong historical performance. Short-term trends don't diminish their importance. In fact, dividends have historically played a major role in total returns, accounting for about 31% of the broader market's monthly total return from 1926 through February 2025, according to S&P Dow Jones Indices. Dividend stocks have been performing well this year, even as broader markets faced turbulence. Wall Street took a hit recently amid rising fears about the economic fallout from President Donald Trump's expanding trade war. The three major US indexes posted sharp declines, wiping out much of the prior session's gains, as escalating tensions between the US and China overshadowed positive economic reports and progress in trade talks with Europe. The S&P index is down by over 8% since the start of 2025, whereas the tech-heavy NASDAQ has declined by over 13%. On the other hand, the Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has recorded a decline of nearly 3%. This highlights how dividend stocks tend to perform more steadily during market downturns—a trend backed by historical data. S&P Dow Jones Indices reports that, over time, the Dividend Aristocrats have delivered stronger risk-adjusted returns than the broader market, with lower volatility. These stocks have offered solid downside protection, outperforming the S&P index in about two-thirds of the market's down months and roughly 44% of its up months. They've also experienced smaller drawdowns compared to the overall index, reinforcing their defensive appeal. In addition, during market downturns, the Dividend Aristocrats delivered an average excess return of 0.87% over the broader market. From December 29, 1989, to February 28, 2025, these stocks showed a market beta of 0.8, indicating lower volatility and stronger resilience compared to the overall market. Analysts pointed out that the historical performance of dividend equities continues to shape a favorable outlook for the current year. A recent report from J.P. Morgan suggested that global equities may be entering a strong phase of dividend growth—driven not only by a cyclical rebound in payouts but also by a sustained structural momentum. While global dividends per share have grown at an average annual rate of 5.6% over the past two decades, projections now indicate an acceleration to 7.6% in the coming years. The report emphasized that the most promising opportunities in the dividend space lie with so-called 'Compounders'—companies with a consistent track record of increasing dividends over time, backed by solid earnings growth. Nearly half of the strategy focuses on these firms, which are also seen as powerful contributors to alpha generation within investment portfolios. Given this, we will take a look at some of the best high growth stocks that pay dividends. A close-up of a person's hand holding a bottle of pharmaceuticals. Our Methodology: For this list, we screened for dividend stocks with sound financials and robust balance sheets. From that group, we picked companies that achieved positive revenue growth in the past five years and dividend growth streaks of at least 10 years. The final 10 picks are those with a five-year revenue growth rate exceeding 5%. The stocks are ranked in ascending order of their revenue growth rates. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). 5-Year Revenue Growth: 10.40% Merck & Co. Inc. (NYSE:MRK) is an American multinational pharmaceutical company, based in New Jersey. It stands out as a major pharmaceutical company with a diverse portfolio of treatments, though its main focus is in oncology. Its top product, Keytruda, ranked as the world's best-selling cancer drug last year. While US patent protection for Keytruda is set to expire in 2028, Merck is working on a new subcutaneous version of the drug, which could help prolong its market exclusivity into the 2030s. Merck & Co. Inc. (NYSE:MRK) posted solid financial results in the final quarter of 2024, with revenue climbing 7% year-over-year to $15.6 billion. Over the full year, sales of Keytruda jumped 18%, totaling $29.5 billion. With expectations for the drug to bring in more than $35 billion annually by 2028—just before its patent runs out—the company continues to strengthen its leadership in the immunotherapy space. Merck & Co. Inc. (NYSE:MRK) is also a solid dividend payer. It currently offers a quarterly dividend of $0.81 per share and has a dividend yield of 4.09%, as of April 13. It is one of the best high growth forever dividend stocks on our list as the company has been rewarding shareholders with growing dividends for the past 14 years. Overall, MRK ranks 7th on our list of the best high growth stocks that pay dividends. While we acknowledge the potential of MRK as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than MRK but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Why Merck & Co. Inc. (MRK) Went Up On Friday?
We recently published a list of . In this article, we are going to take a look at where Merck & Co. Inc. (NYSE:MRK) stands against other firms that end Friday strong. Wall Street's main indices finished the trading week in the negative territory as investor sentiment was weighed down by economic uncertainties brought about by the ongoing trade tensions globally. The tech-heavy Nasdaq fell the heaviest, by 2.70 percent, followed by the S&P 500, by 1.97 percent, and the Dow Jones, by 1.69 percent. Despite the broader market downturn, 10 individual stocks showed a strong performance during the trading session, with three companies particularly notable for hitting new all-time highs. In this article, we listed Friday's top performers and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume. A close-up of a person's hand holding a bottle of pharmaceuticals. Shares of Merck & Co. rallied by 1.86 percent on Friday to end at $89.23 apiece following news that it would officially launch in October this year a subcutaneously injectable version of its blockbuster cancer treatment, Keytruda. According to the company, it targets the approval of the Food and Drug Administration (FDA) for the treatment on September 23 ahead of its October 1 official launch target. The peak adoption rate is expected to hit two years later. By injecting Keytruda under the skin rather than intravenous delivery, the time it takes for patients to receive the medicine would significantly reduce. 'We'll be shipping product immediately following approval, in the first week or two following approval is the expectation, and we'll have more than enough supply to meet the market demand,' said Joanne Monahan, MRK senior vice president in oncology division. 'We expect the greatest uptake, at least initially, in patients who take monotherapy, oral combinations, and those who have early-stage cancers,' she added. Overall, MRK ranks 10th on our list of firms that end Friday strong. While we acknowledge the potential of MRK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as MRK but trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
