Amid Major Threats, Merck Stock Is A Sell

Summary:

  • Merck faces significant challenges, including increased competition and regulatory scrutiny for Keytruda.
  • Keytruda is facing potential threats from competitors like Summit Therapeutics’ ivonescimab and ImmunityBio’s Anktiva in lung cancers.
  • Regulatory issues loom, with FDA scrutiny on Keytruda for stomach cancer and a drastic price cut for Januvia under Medicare.
  • Despite some positive catalysts and a mixed valuation, I recommend selling MRK stock due to these substantial threats and uncertainties.

Merck & Co. headquarters in Silicon Valley

Sundry Photography

Leading drugmaker Merck & Co., Inc. (NYSE:MRK) is facing multiple, significant challenges over the longer term, including likely meaningful competition to and increased regulatory scrutiny of its blockbuster cancer treatment, Keytruda.

And the sales of its Januvia diabetes


Analyst’s Disclosure: I/we have a beneficial long position in the shares of IBRX, GSK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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