Merck: Keytruda Competition Not Seen as a Threat, but Could Act as Stock Overhang in Near-Term

  • Keytruda is key to Merck’s growth prospects, as the drug’s growth makes up most of the company’s revenue growth for 2019

  • Two competing drug regimens announced positive results in 1L NSCLC recently, which could negatively impact Keytruda’s growth trajectory

  • Keytruda sets a high bar in efficacy and safety, and the street does not think that competitors will be able to meet this bar to commercially impact Keytruda sales

  • With that said, the trial results could act as an overhang in the near-term until full results are released in 2020

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