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Tuesday, on Wall Street, Cantor Fitzgerald reiterated a Neutral rating with a set price target of $85.00 on Merck (NSE:PROR) & Co., Inc. (NYSE:MRK). The firm’s analyst, Carter Gould, provided insight into the current situation surrounding Merck’s Gardasil vaccine, which has been a topic of concern among investors due to potential changes in recommended dosage regimens.
The Advisory Committee on Immunization Practices (ACIP) had previously been expected to recommend a 1-2 dose regimen of Gardasil, a move that could impact U.S. sales estimates for the vaccine. Gould noted that while there was a clear momentum toward this direction, the perceived risk to Merck’s 2025 sales might be overstated. He pointed out that current usage patterns, established clinician behaviors, and Merck’s possible pricing strategies could mitigate potential sales declines. Notably, Merck has demonstrated strong financial stability, maintaining dividend payments for 55 consecutive years with a current yield of 4.08%, and InvestingPro analysis indicates the company’s overall financial health score is "GREAT."
Gould also highlighted the new uncertainties regarding the ACIP’s stance, suggesting that these could either delay an unfavorable decision for Merck until their October meeting or, conversely, increase the likelihood of the committee supporting a 1-2 dose regimen at the upcoming June meeting.
Merck’s Gardasil, which is used to protect against certain strains of human papillomavirus (HPV), has been a significant product for the company. The discussion around the number of doses required for effective immunization is critical as it directly influences the vaccine’s sales volume and, consequently, Merck’s financial performance.
Investors and stakeholders in the pharmaceutical giant are keeping a close eye on the developments from the ACIP, as the committee’s recommendations could have implications for Merck’s vaccine strategy and market positioning.
The next ACIP meeting is scheduled for June, where the committee will discuss and potentially decide on the recommended dosage for Gardasil. This decision is eagerly anticipated by the market as it will provide further clarity on the vaccine’s future in the U.S. healthcare landscape.
In other recent news, Merck & Co., Inc. has received FDA approval for its RSV prevention drug, Enflonsia, designed to protect infants during their first RSV season. This approval is based on successful results from the CLEVER and SMART trials, which demonstrated significant reductions in RSV-related infections and hospitalizations. The approval introduces competition for Swedish Orphan Biovitrum’s Beyfortus, potentially impacting its market share and royalty revenue. Meanwhile, Merck announced positive results from Phase 3 trials for its cholesterol drug, enlicitide, which significantly lowered LDL cholesterol levels in patients. If approved, enlicitide could become the first oral PCSK9 inhibitor in the U.S., offering a convenient alternative to injectable treatments. BMO Capital has maintained its Market Perform rating for Merck, citing optimism about the company’s long-term oncology strategy but noting short-term challenges. The anticipated FDA approval of a subcutaneous form of Keytruda in September is expected to face hurdles in conversion from its intravenous formulation. Investors are closely watching these developments, given their potential implications for Merck’s financial performance and market dynamics.
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