MRK - MERCK, Inc.
August 3, 2009 by Hot Stocks To Buy · Leave a Comment
MRK (MERCK, Inc)
- Entry Price: $30.02
- Risk Level: 8
- Profitability Level: 7
- 1year Target Price: $35-$40
Despite all the legal troubles surrounding Merck’s Vioxx drug, the company is still going strong with other marketable drugs. On July 31, 2009 the U.S. Food and Drug Administration (FDA) approved and expanded the use for ISENTRESS®. ISENTRESS can now be used in the treatment of adult patients starting HIV-1 therapy for the first time (treatment-naïve), as well as in treatment-experienced adult patients. ISENTRESS is used in combination with other antiretroviral (ARV) medicines for the treatment of HIV-1 infection in adult patients.
With the announcement of Merck & Co.’s head of vaccine retirement effective Nov. 1 2009, this could be beneficial to the company considering it has been plagued by management decisions that lead to manufacturing deficiencies cited by the Food and Drug Administration which reduced sales significantly. During March 2009 Merck unanimously approved a $41.1 billion acquisition of partner drug maker Schering-Plough Corp. of Kenilworth, N.J. This merger will lead to cost-cutting and give Merck a better edge over the drug industry.
With a cost-cutting merger on the way and reorganization at the management level to come, analysts at Yahoo Finance still estimate a profit margin of 24.59% and 5.0% earnings for the next year making Merck hot stock to buy with a mid to high level of risks.
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