Opinions Brian Madden
Merck & CompanyMRKWEAK BUYOct 30, 2024
Stock price when the opinion was issued
As of Jun 09, 2026. Market Open.
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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.
Gordon ReidOne of her holdings in the space. This higher-quality name has both growth and less execution risk.
Brianne Gardner
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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.
(Analysts’ price target is $123.89)
Julien Nono-WomdimPremium content
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.
Gordon Reid
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Pharma is ~90% of revenue, smaller segment is animal care. Pulled back about 23% from recent peak in June. Yield is 3%, has grown at 5% compound pace over last 5 years. So total compounded shareholder return ~10% over the last decade. Pullback probably buyable. Steady, non-cyclical, a need not a want.
Risks include lower guidance on Gardasil (second-biggest drug) sales in China, coming off patent in 2028. Keytruda (biggest drug) also coming off patent then. Those two together account for just over 50% of revenues. Need to fill hole in pipeline either through R&D or M&A.