Merck Stock Sees Modest Gains as US Orders Split Vaccines
Merck stock rose by 1.89% to $132.88 on Wednesday after the company's potential involvement in a presidential directive to split measles, mumps, and rubella shots into individual vaccines was announced.
The order instructs federal agencies to collaborate with pharmaceutical companies on three new vaccines. Merck currently markets M-M-R II and ProQuad, while GSK offers PRIORIX. However, there is no product approved for just one of these diseases in the United States.
Merck has stated that it may take over 10 years to develop three new vaccines. The company does not break out M-M-R II sales individually, but the combined revenues from ProQuad, M-M-R II and Varivax totaled an estimated $591 million in the second quarter, representing around 3.6% of overall sales.
Despite the potential benefits of individual vaccines, Wall Street sentiment remains cautious. Out of 22 analysts tracked, only 15 have a buy rating on the stock, with an average price target of $135.50, just 2.0% higher than Wednesday's late-morning level.