Merck’s (MRK) Quality is Clear, but Growth Visibility Matters, TD Cowen Notes

Core Viewpoint - Merck & Co., Inc. is recognized as a strong company with a solid growth potential, but its stock may struggle to distinguish itself in the pharmaceutical sector without clearer long-term growth indicators [2]. Group 1: Growth Projections - Merck has raised its revenue projections for new growth drivers to approximately $70 billion by the mid-2030s, indicating a strategic focus on expanding its product offerings [3]. - The company has increased its sales expectations for cardiometabolic and respiratory treatments to about $20 billion, up from a previous estimate of $15 billion [4]. - Merck has also significantly raised its forecast for infectious disease drugs, now anticipating around $15 billion in sales compared to an earlier estimate of $5 billion [4]. Group 2: Product Development and Trials - Merck and Moderna reported positive results from their experimental personalized cancer vaccine, which, when combined with Keytruda, reduced the risk of recurrence or death in high-risk melanoma patients by 49% after five years [5].