Analyst gloomy on Merck trends

An influential pharma analyst downgraded Merck shares, saying they've hit their price ceiling. Why? The reasons can be summed up in four drugs: Singulair, Gardasil, taranabant, and Vytorin.

Sanford Bernstein's Tim Anderson wrote to investors that Singulair scrips are sluggish [1], and an ongoing FDA safety review [2] could depress them further when it wraps up at year's end. Plus, Teva might launch a generic competitor next year even though it would be on shaky patent ground. Gardasil [3] sales trends have been weak, too, Anderson says. Vytorin [4]--and its sister cholesterol drug Zetia [5]--have been suffering under controversy since the beginning of this year.

And then there are pipeline troubles, symbolized by the obesity drug taranabant [6]'s psychiatric side effects. Anderson thinks there's a good chance the med won't be approved. But, he says, Merck could turn this pipeline perception around in December with some good news at its annual R&D update. Guess we'll have to wait and see.

- see the Pharmalot post [7]

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Can Merck boost Singulair sales? [8]
Fortune scolds Merck for "risky" programs [9]
Merck, Schering-Plough stocks take a dive [10]
Schering up, Merck's down on Vytorin news [11]
Vytorin fallout doesn't faze analysts [12]