Merck & Company (MRK – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Courtney Breen from Bernstein maintained a Hold rating on the stock and has a $95.00 price target.
Courtney Breen has given his Hold rating due to a combination of factors surrounding Merck & Company’s current situation. One of the key issues is the potential patent infringement risk associated with Merck’s subcutaneous formulation of Keytruda, which may infringe on Halozyme’s more recent Mdase patents. This uncertainty could impact the future market performance of Keytruda’s subcutaneous version, which is expected to launch in 2025.
Additionally, while the subcutaneous version of Keytruda is anticipated to provide a competitive advantage post-2028 by differentiating itself from IV biosimilars, the ongoing patent dispute introduces a level of risk that cannot be ignored. Although Merck and its partner Alteogen express confidence in their position, the broad nature of the Mdase patent remains a concern. These factors contribute to the Hold rating, as they present both potential upside and significant risk that need to be carefully balanced.
According to TipRanks, Breen is a 3-star analyst with an average return of 14.0% and a 91.67% success rate. Breen covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Merck & Company, and Pfizer.