Merck Intrinsic Value Calculator – Merck Takes Legal Action to Block Medicare Drug Pricing Program
June 12, 2023
🌧️Trending News
Merck ($NYSE:MRK), one of the world’s leading pharmaceutical companies, has recently taken legal action against the US Government in an attempt to block a new Medicare drug pricing program. Merck argues that this would impact their ability to bring new treatments to market and provide high-quality medications to patients. Merck is a multinational biopharmaceutical and healthcare company headquartered in Kenilworth, New Jersey. Merck is best known for producing drugs such as Zepatier, Januvia, and Gardasil.
It is one of the largest providers of prescription and over-the-counter medications in the United States. Merck is also a leader in the development and manufacture of vaccines and biologic therapies.
Share Price
On Tuesday, Merck took legal action to block a new Medicare drug pricing program that the company views as unlawful. The company filed an injunction to challenge the Centers for Medicare and Medicaid Services’ International Pricing Index Model. As a result, Merck’s stock opened at $113.6 and closed at $110.0, down by 2.7% from its last closing price of 113.1.
The company believes that the proposed model will increase drug costs and interfere with private market negotiations between drug makers and pharmacies. Merck does not agree with the CMS’s approach and is taking legal action in order to protect its interests. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Merck. More…
| Total Revenues | Net Income | Net Margin |
| 57.87k | 13.03k | 23.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Merck. More…
| Operations | Investing | Financing |
| 15.67k | -6.15k | -8.09k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Merck. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 107.8k | 60.89k | 18.46 |
Key Ratios Snapshot
Some of the financial key ratios for Merck are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.4% | 8.7% | 28.0% |
| FCF Margin | ROE | ROA |
| 19.5% | 21.8% | 9.4% |
Analysis – Merck Intrinsic Value Calculator
GoodWhale has conducted an in-depth analysis of MERCK’s fundamentals, and has determined that the intrinsic value of their stock is around $93.0, as calculated by our proprietary Valuation Line. This implies that the current market price of $110.0 for the share is overvalued by 18.3%, making it a fair price but above its intrinsic value. As such, we believe that investors looking to purchase MERCK’s stock should do so with caution and be aware of the overvaluation. Merck_Takes_Legal_Action_to_Block_Medicare_Drug_Pricing_Program”>More…
Peers
In the pharmaceutical industry, Merck & Co Inc is up against some stiff competition. Sanofi SA, Roche Holding AG, and TherapeuticsMD Inc are all major players in the industry. While each company has its own strengths and weaknesses, they all compete against each other to bring new and innovative drugs to market.
– Sanofi SA ($LTS:0O59)
As of 2022, Sanofi SA has a market capitalization of 102.29 billion euros and a return on equity of 7.56%. The company is a French multinational pharmaceutical company headquartered in Paris, France, and is one of the world’s largest pharmaceutical companies. Sanofi is a diversified company, with operations in several therapeutic areas, including diabetes, vaccines, rare diseases, multiple sclerosis, oncology, immunology, and cardiovascular.
– Roche Holding AG ($LTS:0TDF)
Roche Holding AG, a Swiss multinational healthcare company, has a market cap of 270.34B as of 2022. The company’s Return on Equity is 47.83%. Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics. The company provides medicines and diagnostic tests that enable personalized health care for patients.
– TherapeuticsMD Inc ($NASDAQ:TXMD)
TherapeuticsMD Inc. is a biopharmaceutical company, which focuses on developing and commercializing products for the health and well-being of women. It offers products in various therapeutic areas, such as Menopause, Osteoporosis, Chronic Vulvar and Vaginal Atrophy, and other health conditions related to hormone deficiency and imbalances. The company was founded by Robert G. Finizio, George S. Paletta, and Douglas S. Leighton in 2010 and is headquartered in Boca Raton, FL.
Summary
MERCK is a global pharmaceuticals giant, and one of the most important players in the industry. The company recently made headlines when it filed a lawsuit against the US Government regarding the Medicare drug pricing program. MERCK argued that the program was not appropriately structured to result in reasonable prices for its drugs, and that it was causing the company significant financial harm.
This type of action by MERCK demonstrates its dedication to ensuring that its products are priced reasonably and that it is willing to take bold steps to protect its interests. From an investment standpoint, MERCK’s aggressive stance should be taken as a sign that the company is committed to maximizing return for its shareholders.
