Why is Merck's stock performing well despite drug pricing concerns?

Merck's stock has surged over 30% in the last three months, with analysts predicting strong Q4 earnings, indicating market confidence despite drug pricing discussions.

What is the recent news regarding Merck's diabetes medication Januvia?

Merck agreed to reduce the price of its diabetes medication Januvia to $100 from $330 for patients using the TrumpRx platform.

Are other pharmaceutical companies also experiencing growth?

Yes, the S&P 500 Health Care index has added 8% over the past three months, with companies like Gilead Science, Eli Lilly, and Regeneron also gaining ground.

Home / Business and Economy / Merck Stock Soars Amidst Drug Pricing Scrutiny

Merck Stock Soars Amidst Drug Pricing Scrutiny

3 Feb

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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 Stock Soars Amidst Drug Pricing Scrutiny

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.