Why We Believe Merck Could Grow In Future?

by Trefis Team
Rate   |   votes   |   Share

Key Takeaways from Merck’s Earnings

  • 1% growth in revenue, 79% rise in EPS
  • Sales for new drugs Keytruda and, Zepatier grew more than 100%
  • Januvia showed 4%-5% growth in terms of TRx volumes
  • Remicade fell by 80% due to strong competition and patent expiration
  • Patents for Vyotorin, Zetia and Cubin will expire by next year, but we continue to remain bullish on Merck due to strong phase 3 pipeline and huge potential for growth in new drugs.

1) Keytruda To Steal The Show

  • Cancer drug Keytruda could contribute $3.5 billion in additional revenue by 2020, implying CAGR of 51%
  • Primarily targeted for the most common type of cancer, lung cancer
  • Expected to launch in 50 markets by the end of 2016
  • Approved recently for head and neck cancer

More than 300 clinical studies under way to expand Keytruda’s usage


2) Zepatier Could Reach Peak Sales of ~$2 Billion by 2020

  • Zepatier received FDA Approval in January, 2016 for treatment of hepatitis C (HCV) with genotype 1 and 4
  • Expected to be launched in Europe by early 2017
  • Market potential is strong with 3 million patients in the U.S.
  • Nearly 200,000 patients are treated annually, and this figure has grown at CAGR of 10% over the plast 5 years.
  • Zepatier list price is cheaper than that of its competitors

3) Strong Phase 3 Pipeline


Merck Post Eanrings Q2


[1] Merck & Co. (MRK) Kenneth C. Frazier on Q2 2016 Results – Earnings Call Transcript, Seeking Alpha, July 29, 2016

[2] Sec Filings

Have more questions about Merck? See the links below.


1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Merck

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology

Rate   |   votes   |   Share


Name (Required)
Email (Required, but never displayed)
Be the first to comment!