Merk & Co Inc. has reliable fundamental parameters and technical patterns to be added to your portfolio.
- Merck makes pharmaceutical products to treat conditions in a number of therapeutic areas, including cardiovascular disease, asthma, infections, and osteoporosis. The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. Following the Schering acquisition, about 45% of the company's sales are generated in the United States
- Merck remains in strong financial health, even with the additional $8.5 billion in debt needed for the Schering acquisition. We expect the combined company will generate a free cash flow of approximately $12 billion in 2011.
- Merck's new products during the last few years have helped to offset recent patent losses, Januvia for diabetes and Isentress for HIV.
- Merck's efforts to develop a reliable late-stage pipeline have yielded questionable results. The Food and Drug Administration denied Merck approval for cholesterol drug Tredaptive (formerly Cordaptive) in early 2008.
- Deciding not to wait for new internal pipeline drugs, Merck significantly strengthened its operations by acquiring Schering-Plough for about $40 billion. Schering brings in a very strong pipeline of late-stage drugs with blockbuster potential and faces only limited patent losses during the next few years.
|MRK||Industry Avg||S&P 500||MRK 5Y Avg*|
|*Price/Cash Flow uses 3-year average.|
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|Dividend Yield %||4.4||3.8||2.5||3.9|