Use drugs? Of course you do - we all do. And Merck is in the business of researching and developing drugs to make our lives easier. The New Jersey - based company is behind popular drugs like Fosamax (for post-menopausal osteoporosis), Propecia (for baldness), and Vytorin (for high cholesterol).
I have a good feeling about Merk, specially now as we enter in to the flu season.
mrussell48@juno.com thinks if Merck & Co Inc were a cell phone, it would be a Razr.
tamara thinks if Merck & Co Inc were a Sweet Tart, it would be cherry.
Robert thinks if Merck & Co Inc were a Ben & Jerry's flavor, it would be Chunky Monkey.
It's typically thought that drugs are supposed to be recession-proof. After all, if the medication is required to live or to live a relatively pain-free life, than it makes sense the consumer would continue to purchase the drug. But this economic time has proven to be anything but ordinary, even the drug companies are feeling the pain. Merck has under-performed compared to its peers, by not finding new ways to grow as a company. Now Merck is aggressively seeking to re-define themselves. They are entering the biosimilars market ~ which is the biotech equivalent of generics. They've begun aggressive cost-cutting efforts, by reducing spending on sales and marketing by 10-20% and they have even begun to support a form of national health care. Hopefully these changes will immediately begin to impact Merck's ability to make money.
By: Erica Feldkamp, WeSeed Writer Here's some good news for those of you concerned about brittle bones: Merck's (MRK) popular osteoporosis drug, Fosamax, will now be offered in generic versions. Israeli Teva Pharmaceuticals and Barr Laboratories have just received FDA approval to sell the drug in the US at about 10-60% less than Merck's Fosamax. Considering that a one-month supply of the brand-name drug retails for about $90, this should provide major savings for consumers. What's good news for consumers isn't necessarily good news for Merck, however. The expiration of its patent on Fosamax means that competitors producing generics will begin to cut into its profits. It stock took a hit today; it was down nearly 2% to $45 earlier on the news. Still, Merck may have other cards up its sleeves. For example, it's considering a generic licensing program, which would allow other producers to make its generic drug - while paying royalties to Merck. This would help preserve some of their profits. But it also stands to question whether consumers would continue purchasing regular, un-license generics, or prefer the "branded", licensed generics. One guess is that, as usual, people will prefer the cheaper drug, "branded", or not. What do you think the future hold for Merck's stock price? Do you think "branded generics" are a good solution? And do you generally prefer cheaper, generic drugs over the name brand? Join the discussion below!
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Today's gain: $-0.27 (-0.70%)
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