Michelle Calpin Merck & Company MRK-N DON'T BUY Apr 22, 2002

The CEO is doing a great job. It trades cheaper than JNJ or Pfizer. Good growth.

Off highs. 2025 provides a broad opportunity in healthcare. Big cancer drug Keytruda coming off patent in 2028, but that's built into the stock price trading at 10x PE. Other drugs in the pipeline to fill in the space. Track record of successful and profitable blockbusters. Yield is 3%.

Owns no US pharma, all under pressure. Potential US healthcare reform may target drug prices. Patent-cliff risk. Not a compelling total-return generator. Yield is ~3%, grows at 6%, which lags the market and the sub-index.

It is best in class. It is a large manufacturer of vaccines but the primary driver is an immune therapy drug that is used across many types of cancers and has 200 ongoing trials. It is coming off patent later in the decade. The vaccine take-up could lead to slower growth but this is a shorter term issue.       Buy 24  Hold 8  Sell 0

It reports Tuesday. Despite acquisitions, MRK remains about their drug Keytruda, the cancer treatment, that keeps working. He beats numbers will be good, but he wants to hear about these acquisitions.

Certainly some stocks are less vulnerable to issues involving tariffs. What comes to mind are healthcare companies. You could look at some of the beaten-down companies that really didn't do well last year, as they're doing quite well today. Try this name, which he owns.

Is now too cheap. Pays a 3.4% dividend. New acquisitions will pay off. There's too much worry over the Keytuda off-patent.

Likes he CEO and company, though the company is hung up on Keytruda is the only big drug they have. He likes the stock at this level.

Whole healthcare complex was weak in 2023 and 2024, so the valuations were reasonable coming into 2025. Current market downtrend plus today's threat of tariffs on pharmaceuticals, and we don't know how this will all end. Drug pipeline is particularly exciting.

Can't tell you when it will turn the corner, but it's a good component of a diversified portfolio.

It's become a nightmare, down 17.6% this year, but collect the 4% dividend and stay the course.