Merck Stock Fair Value – Merck a Solid Pharma Buy with Potential for Increased Profitability via Keytruda Patent Extensions
June 22, 2023
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Merck ($NYSE:MRK) is a diversified healthcare company with a long history of success in the pharmaceutical industry. It produces a broad portfolio of products focusing on treatments for cancer, diabetes, heart disease, and other health conditions. The company’s biggest success to date is its Keytruda products, a suite of immunotherapy drugs that have revolutionized the treatment of some cancers. The patents for these drugs are due to expire soon, and Merck is attempting to extend them in order to maintain its market share.
Should they be successfully extended, Merck stands to benefit greatly from increased profitability. Investors looking for a solid pharma buy should consider Merck due to its strong portfolio and potential for increased profitability via extensions of the Keytruda patents. Furthermore, its potential for increased profitability should the patents be extended provides an additional incentive for investors looking for greater returns.
Price History
On Tuesday, MRK stock opened at $110.1 and closed at $109.2, down 1.7% from the prior closing price of $111.1. Keytruda’s success will lead to further research and development of other drugs in Merck‘s portfolio, driving the company’s overall growth and enhancing its market value. As such, investors should keep an eye on Merck’s stock for potential investment opportunities. 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 Stock Fair Value
After our careful analysis of MERCK‘s financials, we determined that the intrinsic value of a MERCK share to be around $92.9 as calculated by our proprietary Valuation Line. More…
Peers
In the pharmaceutical industry, Merck & Co Inc is up against some stiff competition. Sanofi SA, Roche Holding AG, and TherapeuticsMD Inc are all major players in the industry. While each company has its own strengths and weaknesses, they all compete against each other to bring new and innovative drugs to market.
– Sanofi SA ($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 healthcare company with a strong track record in the pharmaceutical industry, and has seen continuous growth since the introduction of its blockbuster drug Keytruda to market. Investment analysts have suggested that MERCK is a solid buy for investors, with strong upside potential if Keytruda patents remain in place. Keytruda has enjoyed a significant market share among cancer treatments and has been successful in creating a competitive edge for MERCK.
Furthermore, MERCK has an impressive range of current products, as well as a strong pipeline of innovative products such as its vaccine for the Zika virus. Analysts believe that MERCK is well-positioned for success in the near future, and its share price should continue to rise as it brings new products to market.
