Is This Pharmaceutical Giant a Buy After a Major Acquisition?

Core Viewpoint - Merck is showing signs of recovery with a 27% stock increase over the past month, driven by strategic acquisitions and new product launches [1]. Company Developments - Merck has acquired Cidara Therapeutics for approximately $9.2 billion, focusing on the development of CD388, a long-acting antiviral drug that could provide extended protection against influenza [4][5]. - The company is also launching Winrevair, which generated $360 million in sales in the third quarter, indicating a strong annual run rate of over $1 billion [8]. - Another product, Capvaxive, a pneumonia vaccine, is performing well with $244 million in sales in the third quarter, nearing the $1 billion annual run-rate mark [9]. - Merck has received approval for a subcutaneous formulation of Keytruda, which will maintain patent protection for a longer period and offers advantages in administration [10]. Market Performance - Merck's third-quarter revenue increased by 4% year over year to $17.3 billion, although concerns remain about future sales due to increasing competition for Keytruda [11]. - The company has a market capitalization of $250 billion, with a current stock price of $99.83 and a dividend yield of 3.21% [8][13]. - Merck has increased its dividend payouts by 93.8% over the past decade, positioning itself as a strong blue-chip dividend stock [13].