Summary
- Merck continues to see growth, driven by Keytruda.
- Operating momentum only appears to strengthen as more investors recognise the improved results.
- Following a recent run higher, I still like the shares, but am no longer actively adding at these levels.
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Merck (MRK) continues to be a story which I watch with great interest, as it has a big blockbuster making a real difference in the form of Keytruda. This new champion of Merck seems to be out competing its competitor product from Bristol-Myers (BMY) as Merck can use this success to offset declines at its legacy drugs.
The market has recognised the continued fundamental improvements and promise of Keytruda as well as the stock has seen a decent rally over the past quarter, making me a happy holder of the stock. While I am not inclined to add more at these levels, shares are not close to levels at which I am tempted to lock in any profits.
