Added to YB: 2025-03-17
Pitch date: 2025-03-13
MRK [bullish]
Merck & Co., Inc.
+9.45%
current return
Author Info
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Company Info
Merck & Co., Inc. operates as a healthcare company worldwide. The company offers human health pharmaceutical for various areas under the Keytruda, Welireg, Gardasil, ProQuad, M-M-R II, Varivax, Vaxneuvance, RotaTeq, Pneumovax 23, Bridion, Dificid, Zerbaxa, Noxafil, Winrevair, Adempas, Verquvo, Lagevrio, Isentress/Isentress HD, Delstrigo, Pifeltro, Belsomra, Januvia, and Janumet brands.
Market Cap
$245.7B
Pitch Price
$91.64
Price Target
134.00 (+34%)
Dividend
3.43%
EV/EBITDA
8.44
P/E
13.10
EV/Sales
4.19
Sector
Pharmaceuticals
Category
value
Merck & Co. ($MRK) and Keytruda’s Patent Cliff: Risk or Opportunity?
MRK: Keytruda patent expires 2028, 46% of sales. Base case: 40% rev decline, $107 fair value (+14.4%). Bear: 70% decline, $92 (-1%). Bull: No expiry, $130 (+40.5%). Asymmetric upside. Trading 10.5x P/E 2025E. Mitigating via lifecycle management, new indications, acquisitions. EPS impact -4.8% to -10.4% post-expiry.
Read full article (6 min)