Welcome to the beat everyone. We're monitoring live pictures from Los Angeles as we come on the air right now. People are continuing these protests after what has widely been reported as the Trump administration's escalation. 700 Marines now deployed by the administration arriving today. You can see some of the indications of this type of military presence on American streets. This is a rare effort to deploy US troops inside the US for what would seem like policing purposes, although the details are in deba ...

Core Insights - Merck and Pfizer are leading pharmaceutical companies with strong oncology portfolios, but their revenue reliance differs significantly, with oncology accounting for over 50% of Merck's total revenues compared to around 25% for Pfizer [1][2]. Group 1: Pfizer's Position - Pfizer is recovering from a slowdown in 2023/early 2024, with diminishing COVID-related uncertainties leading to reduced revenue volatility [3]. - Non-COVID operational revenues improved in 2024, driven by key products like Vyndaqel, Padcev, and Eliquis, as well as new launches and acquisitions [4]. - Pfizer anticipates cost cuts and restructuring to yield savings of $7.7 billion by the end of 2027, which should enhance profit growth [5]. - Challenges include declining sales of COVID-19 products and significant impacts from patent expirations expected between 2026-2030 [6]. - Pfizer has faced setbacks, including the discontinuation of the GLP-1R agonist danuglipron due to safety concerns [7]. - As of March 31, 2025, Pfizer had cash and cash equivalents of $17.3 billion and long-term debt of $57.6 billion, with a debt-to-capital ratio of 0.41 [8]. Group 2: Merck's Position - Merck has over six blockbuster drugs, with Keytruda being the primary revenue driver, particularly in early-stage non-small cell lung cancer [9]. - The company has made significant regulatory and clinical progress, with its phase III pipeline nearly tripling since 2021 [10]. - However, Merck is heavily reliant on Keytruda, raising concerns about its ability to diversify its product lineup ahead of the drug's patent loss in 2028 [11]. - Merck ended 2024 with cash and cash equivalents of $9.2 billion and long-term debt of $33.5 billion, also with a debt-to-capital ratio of 0.41 [12]. Group 3: Financial Estimates and Performance - The Zacks Consensus Estimate for Pfizer's 2025 sales implies a year-over-year decrease of 0.6%, while Merck's estimates suggest a 0.9% increase [13][17]. - Year-to-date, Pfizer's stock has declined by 10.8%, while Merck's stock has dropped by 22.9%, compared to the industry's decrease of 4.0% [19]. - Pfizer's dividend yield of 7.5% is higher than Merck's 4.3%, and Pfizer's return on equity is 20.3%, lower than Merck's 43.2% [22][23]. Group 4: Market Outlook - Both companies are cheaper than larger drugmakers like AbbVie and Eli Lilly, but Merck's reliance on Keytruda and challenges in other areas raise concerns about its future growth [28]. - Pfizer's improving growth prospects, rising estimates, and higher dividend yield position it as a better investment option compared to Merck [29].