Overhang On Merck & Company (MRK) Lifted By IMPROVE-IT Update
Analysts at Leerink Swann & Co maintain their "outperform" rating on Merck & Company (NYSE: MRK), while reducing their estimates for the company.
According to Leerink Swann & Co, “MRK provided an update on the IMPROVE-IT trial (CV outcome study of Vytorin versus simvastatin in 18,000 ACS patients) stating that the Data Safety Monitoring Board (DSMB) recommended the study continue following a planned interim look at safety and efficacy. We believe this lifts a modest overhang for the stock and we remain convinced that the trial will complete as scheduled in 2013.”
“In 2010, we estimate that combined sales of Merial/ISP will be $5.55B. We conservatively forecast Merial sales to decline at an avg rate of 2% from '09-'16 to account for loss of fipronil exclusivity ('10+) vs. avg ISP sales growth of 6% from '09-'16. Assuming Merial-ISP is forced to divest 10% of revenue to competitors in '11, we estimate '16 sales of $5.54B,” the analysts add.
Leerink Swann & Co has reduced its EPS estimate for 2011 from $3.81 to $3.80.
