Merck Intrinsic Value – Merck Halts Lung Cancer Trial for Keytruda Combo After Failing Main Goal
December 8, 2023
🌧️Trending News
Merck ($NYSE:MRK), also known as Merck & Co., Inc., is a major pharmaceutical company based in New Jersey. The company has recently announced it will be discontinuing its lung cancer trial utilizing its own cancer therapy drug Keytruda in a combination therapy. The primary goal of this trial was not met, leading Merck to make this decision. Unfortunately, these goals were not achieved and Merck has now chosen to stop the trial entirely. Merck has stated that it still has confidence in Keytruda, as it is approved across the world for multiple types of cancer and has seen positive results from other trials.
However, this particular trial has ultimately proven to be unsuccessful and will no longer be continued.
Stock Price
On Thursday, Merck announced they had halted a lung cancer trial for a combination of Keytruda and chemotherapy after the trial failed to meet its main goal. This news caused Merck’s stock to open at $105.6 and close at $103.9, a 1.7% decline from its prior closing price. The trial was conducted to see if this combination of treatments could extend the life of patients with advanced non-small cell lung cancer. Unfortunately, the trial did not meet its main goal and Merck had to discontinue it. This news has caused investors to worry about the future of Merck’s cancer treatments.
However, the company remains confident in its other treatments, including Keytruda, and is committed to continuing its research and development. 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 |
| 59.31k | 4.61k | 8.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Merck. More…
| Operations | Investing | Financing |
| 15.07k | -4.96k | -9.12k |
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 |
| 104.47k | 65.73k | 15.25 |
Key Ratios Snapshot
Some of the financial key ratios for Merck are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.8% | -14.8% | 14.2% |
| FCF Margin | ROE | ROA |
| 18.3% | 13.6% | 5.0% |
Analysis – Merck Intrinsic Value
At GoodWhale, we conducted an analysis of MERCK‘s wellbeing. Our proprietary Valuation Line calculated that the intrinsic value of MERCK share is around $96.9. Currently, MERCK stock is traded at $103.9, which can be considered a fair price but is slightly overvalued by 7.2%. This indicates that investors have a positive outlook and are willing to pay a premium for MERCK shares. More…
Peers
In the pharmaceutical industry, Merck & Co Inc is up against some stiff competition. Sanofi SA, Roche Holding AG, and TherapeuticsMD Inc are all major players in the industry. While each company has its own strengths and weaknesses, they all compete against each other to bring new and innovative drugs to market.
– Sanofi SA ($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 & Co., Inc. is a pharmaceutical company that recently halted a clinical trial for its lung cancer treatment Keytruda. The trial was a combination of Merck’s Keytruda and AstraZeneca’s Imfinzi. Unfortunately, the treatment failed to hit its primary goal of improving overall survival rates among patients. Analysts are closely monitoring the situation, as Merck’s stock has dropped significantly in response.
Investors should consider how this development may affect future trials and the company’s stock price, as well as potential new developments in Keytruda’s pipeline. Merck has historically been successful in executing innovative treatments to meet the needs of their customers, and investors should assess how the market will respond to this setback.
