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Merck Stock Soars Amidst Drug Pricing Scrutiny
3 Feb
Summary
- Merck shares have risen over 30% in the last three months.
- Analysts expect strong Q4 earnings and revenue for Merck.
- Talks for Revolution Medicines acquisition fell apart last month.
Merck's stock has demonstrated remarkable resilience, surging by approximately 32% over the last three months. This performance continues despite ongoing scrutiny and agreements regarding drug pricing, including a recent repricing of the diabetes medication Januvia to $100 for patients on the TrumpRx platform. Wall Street analysts are optimistic, forecasting Q4 earnings per share of $2.01 on revenue of $16.2 billion.
Virtus Investment Partners chief market strategist, Joe Terranova, expressed continued confidence in Merck, noting the stock's solid run. He highlighted that the company's upcoming earnings report, alongside Pfizer's, will provide clarity on the impact of presidential agreements on drug costs. The broader health care sector is also gaining, with the S&P 500 Health Care index up 8% in the same period, as firms like Gilead Science, Eli Lilly, and Regeneron also see growth.
