Diversification has fallen somewhat out of favor in Big Pharma, as
many companies are looking to a smaller number of larger therapeutic
areas to generate better growth and cash flow. Merck (NYSE: MRK )
is among them, as the company has made it clear that immuno-oncology
is a top priority, along with hepatitis C (HCV) and vaccines to lesser
extents.
It is certainly true that focusing intensely on oncology has done Roche (NASDAQOTH: RHHBY ) no harm, and it is a path that Bristol-Myers Squibb (NYSE: BMY )
is also choosing to follow. Merck also has some opportunities and
options for restructuring its animal health and consumer businesses in a
way that could add value. Although investor enthusiasm for
immuno-onocology has driven these shares to a strong performance over
the past year, they are not unreasonably priced for long-term investors.
Continue reading here:
Merck & Co., Inc. Pushing The Throttle On Oncology
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