Does Januvia signify the beginning of Merck and Co’s (NYSE:MRK) downfall?
Merck and Co. (NYSE:MRK) is one of the leading pharmaceuticals in America, if not the world. It provides top of the range healthcare solutions to almost all kind of medical problems. Recently though, Merck and Co. hit a bump in the road with its stocks coming down by 0.79% to $50.55 on Monday the 12th of October 2015 . There was one drug majorly blamed for this: Januvia.
Januvia: The answer to our problems or here to raid our pockets?
With a market cap of $144.3 billion dollars, Merck and Co. (NYSE:MRK) is a force to be considered in the drugs industry. Stocks for the year-to-date ending on the 10th of October 2015 were down by 12.3% and a big reason for this was its …show more content…
These SGLT-2 inhibitors have impressed Wall Street completely as can be seen from the EMPA-REG OUTCOME trail data results. Jardiance leads to a fall of 38% in deaths from heart complications, a lower rate of hospitalizations due of chronic heart failure by 35% and a fall in deaths because of any cause by almost 32%! This is obviously very good news for Jardiance but does not bode well for Merck and Co.’s Januvia.
This study has placed a ceiling over the demand for Januvia which means that Merck is left with only one option – to increase the already high price of this drug in order to increase its revenue and profit. Januvia was already listed on the seventh place of the CMS list of drugs by cost, so this is not much of an option for Merck and Co. Sales of Januvia in 2015 have already started dragging which is not good news for Merck considering that Januvia accounts for 15% of its sales with a run of $6 billion …show more content…
(NYSE:MRK) is a strong company with a solid financial position. It has a low debt-to-equity ratio of 0.57, which is well below the industry average and gives one a positive outlook in Merck’s ability to avoid short-term cash problems. It has a prominent return on equity and good cash flow from operations. Compared to other companies in the Pharmaceuticals industry and the overall market, MERCK & CO's return on equity exceeds that of both the industry average and the S&P 500. Their net operating cash flow has increased to $2,585.00 million or 11.66% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of
Merck and Co. (NYSE:MRK) is one of the leading pharmaceuticals in America, if not the world. It provides top of the range healthcare solutions to almost all kind of medical problems. Recently though, Merck and Co. hit a bump in the road with its stocks coming down by 0.79% to $50.55 on Monday the 12th of October 2015 . There was one drug majorly blamed for this: Januvia.
Januvia: The answer to our problems or here to raid our pockets?
With a market cap of $144.3 billion dollars, Merck and Co. (NYSE:MRK) is a force to be considered in the drugs industry. Stocks for the year-to-date ending on the 10th of October 2015 were down by 12.3% and a big reason for this was its …show more content…
These SGLT-2 inhibitors have impressed Wall Street completely as can be seen from the EMPA-REG OUTCOME trail data results. Jardiance leads to a fall of 38% in deaths from heart complications, a lower rate of hospitalizations due of chronic heart failure by 35% and a fall in deaths because of any cause by almost 32%! This is obviously very good news for Jardiance but does not bode well for Merck and Co.’s Januvia.
This study has placed a ceiling over the demand for Januvia which means that Merck is left with only one option – to increase the already high price of this drug in order to increase its revenue and profit. Januvia was already listed on the seventh place of the CMS list of drugs by cost, so this is not much of an option for Merck and Co. Sales of Januvia in 2015 have already started dragging which is not good news for Merck considering that Januvia accounts for 15% of its sales with a run of $6 billion …show more content…
(NYSE:MRK) is a strong company with a solid financial position. It has a low debt-to-equity ratio of 0.57, which is well below the industry average and gives one a positive outlook in Merck’s ability to avoid short-term cash problems. It has a prominent return on equity and good cash flow from operations. Compared to other companies in the Pharmaceuticals industry and the overall market, MERCK & CO's return on equity exceeds that of both the industry average and the S&P 500. Their net operating cash flow has increased to $2,585.00 million or 11.66% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of