Merck's $153 Stock Valuation Stretches to Breaking Point

Merck's stock has reached an all-time high of $153.53, up 78% over the past year, driven by a positive Phase 3 readout for its mRNA melanoma treatment in partnership with Moderna.

The company's pipeline is also being praised for its depth and breadth, with several promising assets including Sotatercept (pulmonary hypertension), CD388 (influenza antiviral), and HIV combination therapies.

However, analysts are cautioning that the stock may be overvalued, with a fair value estimate of $142. The Keytruda patent cliff in 2029 is also a concern, as it could erode a significant revenue stream.