Why Anti-Infective Drugs Account For A Third of Merck’s Valuation
Merck’s (NYSE:MRK) Anti-Infective drugs account for 35% of its value, according to our estimates. Take a look at our interactive dashboard of Merck’s business, which shows how the anti-infective drugs will perform in the coming years, compared to the company’s other segments. Below we explain in more detail.
Anti-Infective Drugs Will Likely Account For Larger Percentage of Revenues Going Forward
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We expect anti-infective drugs to account for one-third of Merck’s total revenue by the end of our forecast period in 2024, compared to 27% in 2016.
Many of The Other Segments Likely To See Sales Declines Amid Patent Expiry, Biosimilar Competition
Within Anti-Infective Portfolio, Zepatier Is The Key Growth Driver
We estimate Zepatier And Gardasil together will account for over 40% of the segment’s revenues in 2018. However, other drugs – including Cancidas, Primaxin, Cubicin, Ivanz and Zostavax – have lost patent exclusivity, and we expect their sales to continue to decline going forward. Also, two more anti-infective drugs will lose their patent exclusivity in 2019. Furthermore, some of Merck’s anti infective drugs, including Isentress, are facing competitive pressure, which is impacting sales growth.
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Our current price estimate for Merck stands at $64, implying a premium of over 10% to the current market price.
See our complete analysis for Merck
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