![]() Several analysts covering the stock expect sotatercept to evolve into a major growth driver for the company.ĭespite this flurry of BD activity, the company still doesn't have a rock-solid growth strategy in place post-2028. The drugmaker's $11.5 billion deal for Acceleron Pharma appears on track to produce a blockbuster-level product, known as sotatercept, in pulmonary arterial hypertension. This effort is expected to culminate in the advancement of four late-stage programs later this year.Īnother green shoot is Merck's cardiovascular-care franchise. Merck has also significantly broadened its oncology footprint through business development (BD). Earlier this year, the drugmaker dove headfirst into immunology with the $11 billion acquisition of Prometheus Biosciences, and its novel ulcerative colitis candidate, PRA023. ![]() Merck has thus been investing heavily in internal and external pipeline development in anticipation of the drug's eventual decline. In 2022, this single drug accounted for roughly 35% of the big pharma's annual revenue. The importance of Keytruda to Merck's growth story can't be overstated. Is Merck stock still a buy with this pivotal headwind looming? Let's dig deeper to find out. However, this key growth driver is slated to face biosimilar competition from generic biologics in the U.S. Merck's market-beating performance has been fueled by the meteoric sales growth of Keytruda, a top-selling immuno-oncology medication. ![]() The drugmaker's stock is currently on a five-year winning streak, relative to standard benchmarks like the S&P 500. ![]() Merck (NYSE: MRK) is a prime example of this conundrum facing pharma investors. ![]()
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