Thursday, February 6, 2014

The Motley Fool: Merck & Co., Inc. Pushing The Throttle On Oncology

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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