Merck & Co (NYSE: MRK) is a top healthcare company that makes prescription medications, vaccines, and animal health products. Its business is broad, with Merck generating billions in revenue from all over the world. A lot centers around Keytruda, a cancer treatment that has helped the business grow over the years.
But the danger is that Keytruda will be losing patent protection before the decade is over, and without it, Merck's business could stall. At worst, the company's revenue may decline significantly. Is Merck too dependent on the drug, and is it too risky of a stock to buy today?
Last month, Merck reported its most recent quarterly results. For the third quarter (ended Sept. 30), the company's sales came in at just under $15 billion, which were 14% higher than in the prior-year period. More than one-third of that revenue (36%) came from Keytruda, which grew at a rate of 20% -- highest among all of the company's key products.
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Is Merck Too Dependent on Keytruda?