Merck's past represents the scrooge-like Vioxx debacle.
Merck's present is their recent FDA approvals, which builds upon their new foundation.
Merck's future represents the potential new FDA approvals along with add-on acquisitions for continued strong growth.
In the spirit of the season, this is a view of Merck's (MRK) past, present, and future along the lines of Charles Dickens: A Christmas Carol. The past is the company's downfall from the Vioxx situation and recovery from the accomplishments of achieving multiple new blockbusters. The present is what Merck is currently earning through recent FDA approvals. Merck's future represents the strong growth potential from new FDA approvals from the pipeline along with new add-on acquisitions.
Merck has multiple catalysts that have the potential to drive above average earnings growth over multiple years. This includes: 25 new indications in Phase 3 studies, recent FDA approvals, the success of Keytruda, and the recent ArQule (ARQL) acquisition. Merck has a good strategy of balancing their own development with new acquisitions.
The article is for informational purposes only (not a solicitation to buy or sell stocks). David is not a registered investment adviser. Kirk Spano is an RIA. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.
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