Merck & Co., Inc. (NYSE: MRK ) is a global healthcare powerhouse that develops and markets vaccines, biologic therapies, and other medicines to treat both humans and animals. The company is most known for its blockbuster drugs — theDear Reader,I am a Senior Derivatives Expert with over 10 years of experience in the field of Asset Management, specializing in equity analysis and research, macroeconomics, and risk-managed portfolio construction. My professional background covers both institutional and private ...

Group 1 - Merck & Co., Inc. is recognized for its pharmaceuticals, vaccines, and health solutions, with notable products like Keytruda, Gardasil, and Januvia [2] - The company reported a mixed quarter, with a small revenue miss but an 11-cent earnings beat, leading to a nearly 2% decline in stock price [2] - Jim Cramer expressed confidence in Merck's long-term potential, citing good acquisitions and a safe dividend, although he remains cautious about FDA uncertainties [1][2] Group 2 - The company collaborates with global biopharma firms on cancer therapies and innovative biologics, indicating a strong position in the biopharmaceutical sector [2] - There is a suggestion that certain AI stocks may offer greater upside potential compared to Merck, highlighting a competitive investment landscape [3]

Core Viewpoint - The article discusses a significant retreat of multinational corporations (MNCs) from the UK pharmaceutical sector, driven by increasing tax burdens and unfavorable policy changes, leading to a perception of the UK as an "investment black hole" for the industry [6][30]. Group 1: Corporate Actions - Merck announced the closure of its drug research center in London, transferring all R&D operations to the US [2]. - Eli Lilly halted its planned biotechnology incubator project in the UK, citing a need to wait for a clearer life sciences environment [3]. - AstraZeneca froze a £200 million investment in its Cambridge research center, signaling a broader trend of MNCs withdrawing from the UK [4]. - Sanofi also publicly stated it would adopt a similar stance towards the UK, joining the retreat [5]. Group 2: Tax and Policy Challenges - MNCs are facing multiple tax burdens in the UK, including corporate tax, R&D tax, and drug sales rebates, which are pressuring their operations [8]. - The NHS's pricing scheme requires pharmaceutical companies to rebate a percentage of their sales to the NHS, directly impacting their investment returns [9]. - The rebate rate for drugs under the statutory pricing scheme was increased to 22.9%, with proposals suggesting it could rise to 23.8%, meaning companies may have to return up to 32.2% of their sales to the NHS [12]. Group 3: Impact of Brexit - The UK's exit from the EU has led to a significant decline in approval efficiency for new drugs, with the UK dropping from 6th to 18th in global rankings for drug approvals [19]. - The cancellation of the EU's free movement policy has hindered the formation of cross-border research teams and slowed clinical trial processes [21]. - The UK government's pursuit of higher rebates and budget cuts for drugs has further marginalized the country in the global pharmaceutical landscape [29]. Group 4: Industry Sentiment and Future Outlook - The lack of consensus between the government, pharmaceutical companies, and patients has led to a situation where all parties are losing out, with companies withdrawing, patients facing limited access to drugs, and the government experiencing a trust crisis [30][34]. - The article warns that if the rebate rates remain above 20%, the UK could lose approximately £11 billion (about 106.6 billion RMB) in R&D investments by 2033 [16]. - Despite some companies like BioNTech and GSK remaining in the UK, their commitment is questioned as they also plan significant investments elsewhere, such as GSK's $30 billion investment in the US [16].

Core Insights - Merck (MRK.US) announced that Keytruda QLEX (subcutaneous Keytruda) has received FDA approval for all previously approved indications for intravenous Keytruda in solid tumors [1] - The subcutaneous formulation of pembrolizumab has been submitted for approval in China, with expectations for approval next year [1] - The subcutaneous administration offers a flexible treatment option, allowing for injections every three weeks in one minute or every six weeks, significantly reducing the time compared to the 30-minute intravenous infusion [1] Study Results - In November 2024, Merck reported successful results from the pivotal Phase III study MK-3475A-D77, comparing subcutaneous pembrolizumab plus chemotherapy to intravenous Keytruda plus chemotherapy for first-line treatment in adult patients with metastatic non-small cell lung cancer, regardless of PD-L1 TPS expression [1] - In this study, subcutaneous pembrolizumab was administered every six weeks, with a median injection time of two minutes and a volume of 4.8 milliliters per injection [1]

Core Viewpoint - Selecting dividend stocks should not solely focus on high yields, as this may lead to risks of dividend cuts if the yield is unsustainable for the company [1][13]. Group 1: Dividend Reliability - Companies like Pfizer, despite having a high yield of 7.2%, may not be as reliable as others like Merck, Omega Healthcare, and Johnson & Johnson, which have demonstrated consistent dividend support [2][4]. - Merck has a history of maintaining its dividend even during challenging times, unlike Pfizer, which cut its dividend in 2009 after acquiring Wyeth [5]. - Omega Healthcare, a REIT focused on senior housing, did not cut its dividend during the COVID-19 pandemic, showcasing its resilience [7][8]. Group 2: Growth Potential - Omega Healthcare is expected to see growth, with an 8% year-over-year increase in adjusted funds from operations (FFO) anticipated due to new asset investments [10]. - Johnson & Johnson, known as a Dividend King for over 60 years of annual dividend increases, offers a reliable dividend, albeit with a lower yield of around 3% [11][12]. Group 3: Investment Considerations - Investors should prioritize dividend consistency over high yields when selecting dividend stocks, as demonstrated by the comparisons among Pfizer, Merck, Omega, and Johnson & Johnson [13].

Core Insights - Merck & Co., Inc. (NYSE:MRK) is recognized as one of the best high dividend stocks to buy under $100, highlighting its appeal to income-focused investors [1][4] - The company faces concerns regarding the expiration of existing patents and its reliance on the cancer therapy Keytruda for revenue, which is a common challenge in the pharmaceutical industry [2][3] - Merck's strong research and development capabilities, along with its ability to acquire smaller companies, position it well to maintain a robust product pipeline and continue its history of dividend growth [3] Dividend Performance - Merck has consistently rewarded shareholders with increasing dividends for the past 16 years, making it a standout choice among dividend stocks priced under $100 [4] - The current quarterly dividend is $0.81 per share, resulting in a dividend yield of 3.97% as of September 18 [4]

Core Insights - Merck has received FDA approval for KEYTRUDA QLEX, a new formulation for subcutaneous administration in adults for most solid tumor indications of KEYTRUDA [1] Company Summary - KEYTRUDA QLEX combines pembrolizumab with berahyaluronidase alfa-pmph, a variant of human hyaluronidase developed by Alteogen Inc [1] - The approval expands the administration options for KEYTRUDA, which is a significant product for Merck in oncology [1]

Merck won US approval for a novel version of its cancer drug Keytruda that’s faster to give, a key component of the marketing strategy for one of the world’s best-selling medicines as it nears patent expiration https://t.co/dFiRVhwOmB ...

Core Insights - The U.S. Food and Drug Administration has approved a new formulation of Merck's cancer therapy Keytruda, allowing for subcutaneous administration, which enhances convenience for patients [1] Company Summary - Merck's Keytruda is a leading cancer therapy, and the new formulation is expected to improve patient compliance and comfort [1] Industry Summary - The approval of the subcutaneous formulation reflects ongoing innovation in cancer treatment delivery methods, potentially influencing market dynamics and competitive positioning within the oncology sector [1]

Group 1 - Merck announced that the European Medicines Agency (EMA) endorsed an injectable version of its cancer therapy Keytruda (pembrolizumab) [3] - The endorsement comes from an expert panel within the EMA, specifically the Committee for Medicinal Products for Human Use (CHMP) [3] - This development is significant for Merck as Keytruda is a blockbuster drug in its portfolio [3]