Oncothyreon (ONTY -20.7%) tanks today after presenting data as ASCO that showed Phase III trials of its investigational MUC1 antigen-specific cancer immunotherapy L-BLP25 didn't meet its primary objective. The trial was conducted by Merck Serono, a division of Merck (MRK -0.7%), under a license agreement with ONTY. [View news story]
Absolutely correct p1llmann. This specific error happens over and over on SA. I would think that the editors would be aware of this issue by now.
"Finally, Odanacatib, a drug targeting osteoporosis going through Phase III trials was pushed back from an expected approval in early 2013 to 2014, further reducing Merck's growth."
Jeffrey, you need to fix this. Odanacatib was going to be filed in early 2013 with approval expected in early 2014. MRK's announced plan is to now file in 2014 with approval expected in 2015.
Meaning that those that analyze the pharma industry for a living consider MRK to have a less robust pipeline than peers (e.g., BMS, NVS, SNY, Roche, etc.). I agree with you that drug development is a "very tough business", for a variety of reasons. It is a fine strategy to be a contrarian and look to add to positions on pullbacks. However, I do not think it is accurate to say that MRK has "one the deepest pipelines of new drugs". You may indeed believe that, which is fine, but I wanted to point out that it is not a widely held opinion. In my opinion, that stock price does not fully reflect the odanacatib delay. I agree that Tredaptive and vorapaxar issues appear to be accounted for. Lastly, have you listened to or the read transcript from MRK's 1Q earnings update to analysts? I suggest that you do so. MRK revenues for 1Q13 are substantially below projection and earnings was guided downward.
petergrt - Actually, it is a widely held belief amongst analysts that MRK is having some major pipeline issues with the failure (Tredaptive) or delay (odanacatib, vorapaxar) of a number of potential important new products.
First, it's "Janumet". Second, metformin is substantially different than sitagliptin (Januvia), although both are dosed orally. They have different mechanisms of action. Third, you do not combine a new patented product with an older generic product to "keep costs down". The company will sell the combination tablet at the market price for the patented product and essentially give the generic away.
A Stable Stock With 12.2% Dividend; Too Good To Be True? [View article]
I have to disagree. This is not a hold forever stock. You need to monitor it closely. It got killed in the Great Recession along with most of the BDCs. Hold forever stocks include KO, JNJ, and CL.
Merck (MRK) and Pfizer (PFE) enter into a 60/40 worldwide agreement to jointly develop and commercialize PFE's type 2 diabetes treatment ertugliflozin which should enter Phase III trials later this year. As part of the deal, PFE received $60M upfront and may receive additional payments in the future. (PR) [View news story]
If you read the press release the answer to your question is quite clear. The agreement is not only for co-marketing ertugliflozin but also for developing fixed-dose combination tablets with metformin and sitagliptin. Plus, MRK has an established leadership in diabetes care due to Januvia/Janumet.
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Oncothyreon (ONTY -20.7%) tanks today after presenting data as ASCO that showed Phase III trials of its investigational MUC1 antigen-specific cancer immunotherapy L-BLP25 didn't meet its primary objective. The trial was conducted by Merck Serono, a division of Merck (MRK -0.7%), under a license agreement with ONTY. [View news story]
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Jeffrey, you need to fix this. Odanacatib was going to be filed in early 2013 with approval expected in early 2014. MRK's announced plan is to now file in 2014 with approval expected in 2015.
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David, I truly appreciate your heroic efforts to help guide us all.
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Long PSEC
Merck (MRK) and Pfizer (PFE) enter into a 60/40 worldwide agreement to jointly develop and commercialize PFE's type 2 diabetes treatment ertugliflozin which should enter Phase III trials later this year. As part of the deal, PFE received $60M upfront and may receive additional payments in the future. (PR) [View news story]