Should You Buy Merck & Co. Inc (NYSE:MRK) After Its Results?

Posted by Lynn Eisler October 29, 2013 0 Comment 980 views

Merck & Co., Inc (NYSE:MRK)’s Q3 results have come in and there has been some sunshine that has been marred by dark clouds. The company had higher Q3 sales in the vaccines and disorder drugs segment. It also flaunted its potential experimental drugs for hepatitis C and cancer that have been designated by the United States FDA as breakthrough therapies.

There was a drop of 4 % in total sales even as Merck & Co., Inc (NYSE:MRK)’s drugs faced competition from generic versions and there was a slump in the demand for the company’s diabetes drug, Januvia. Merck & Co., Inc (NYSE:MRK) has now trimmed its profit forecast for 2013 by approximately 25% per share.

The net income also took a big dip. This was due to the unfavorable currency-exchange rates, big charges and dismal sales in all the three businesses that the company has. A bright spot in the quarter was the breakthrough-therapy designation that the Merck & Co., Inc (NYSE:MRK)’s MK-5172/MK-8742 was granted. This drug is being developed to be used in the treatment of Chronic Hepatitis-C Virus Infection. The company’s investigational 9-valent HPV-Vaccine has also completed the Pivotal Phase-III Study, and is right on track for a 2013 submission

Monday’s trading

In Monday’s trading, Merck & Co., Inc (NYSE:MRK) dropped by 2.56%. The opening price of the shares was $45.57, which climbed to an intraday high of $45.82 and dipped to a close of $45.35. Approximately 27.30 million shares were traded on Monday while an average volume of 14.38 million shares were traded over a 30 day period. The 52-week low of Merck & Co., Inc (NYSE:MRK) shares is $40.02 and its 52-week high is $50.16. The company has a market capitalization of $132.71 billion.

About the company

Merck & Co., Inc (NYSE:MRK) is a global health-care company. It delivers health solutions via its prescription medicines, biologic therapies vaccines, animal-health, & consumer care products.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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