Gordon ReidMerck & CompanyMRKBUYAug 17, 2023

Many drugs in the pipeline, and this compensates for older drugs going off patent. For example, it's blockbuster Keytruda is going off. You want companies that deliver double-digit revenue growth on offerings.

Today's downward move isn't all that outsized. There's been more clarity on US drug pricing. Seeing a bit of market exhaustion, as US pharma is trading at huge premiums relative to their own history.

Rerating from pricing clarity has already been baked in. R&D pipeline in the sector is a mixed bag, doesn't trust it.

He bought it for their strong drug pipeline and is happy to stay here.

One of her holdings in the space. This higher-quality name has both growth and less execution risk.

Erratic and bumpy name. Concerns about Keytruda falling off. Pipeline (looking pretty good), execution, and valuation story. Trades at 12x PE. Just beat Q4, revenue beat. All things considered, you can own this.

Pharmas are coming back. Political policy is improving. Keytruda makes up a lot of revenues but faces a patent cliff in 2028. But MRK has invested a lot in new drugs and been buying companies strategically.

Pays a really nice dividend. Really nice drug pipeline. Inexpensive. Reasonably wide moat.

A good drug pipeline with many promising drugs in phase 2 trials, though they have to overcome the patent cliff of Keytruda.

They have a good pipeline that will help offset the loss of their major Keytruda drug when it goes off-patent. MRK is good at buying and tucking in companies. Their 2025 chart wasn't that great until the end of the year when the sector caught a bid.

Is bullish healthcare for 2026 because of its growing customer base (baby boomers) who will need health services. He's been adding to Merck, post-Keytruda.

He made a mistake in selling this. It's now back to $94 and wants to hit $102.97, a 52-week high.