Market Update (NYSE:MRK): Payers see price leverage with entry of Merck hepatitis C drug

[Reuters] – U.S. pharmacy benefit managers expect the launch of Merck & Co Inc’s new hepatitis C pill to improve their leverage in price negotiations with drugmakers. The Food and Drug Administration on Thursday approved Merck’s Zepatier for treatment of patients infected with the most common form of the liver-destroying virus, genotype 1, as well as the less common genotype 4. The list price for the new drug is $54,600 for a 12-week regimen – compared with $94,500 for Gilead Sciences Inc’s Harvoni. Read more on this. Merck & Co. Inc. (MRK) , valued at $140.75B, opened at $49.80. During the trading session, MRK traded between $49.59 to $50.45 with a one year range of $45.69 to $61.93. Priced at 14.11x this year’s forecasted earnings, MRK shares are relatively expensive compared to the industry ’s -1.49x forward p/e ratio. And for those looking to make a return holding the stock, the company pays shareholders $1.84 per share annually in dividends, yielding 3.58%. In a review of the consensus earnings estimate this quarter, 19 sell-side analysts are looking at $0.91 per share, which would be $0.04 better than the year-ago quarter and a $0.01 sequential increase. Investors should also note that the full-year EPS estimate of $3.57 is a $0.08 improvement when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $10.36 Billion. If reported, that would be a 1.15% decrease over the year-ago quarter. More recently, BofA/Merrill downgraded MRK from Buy to Neutral (Jan 27, 2016). Previously, Berenberg Initiated MRK at to Hold. The average price target for MRK shares by the analysts covering it is $60.84, which is 22.17% above where the stock opened. See more in (NYSE:MRK) Similar Articles: Stock Update: Merck & Co Inc (NYSE:MRK) – Merck Receives FDA Approval of ZEPATIER™ (elbasvir and grazoprevir) for the Treatment of Chronic Hepatitis C Virus Genotype 1 or 4 Infection in Adults Following Priority Review Market Update: Merck & Co Inc (NYSE:MRK) – FDA approves Merck drug to reverse effects of muscle relaxants Company Update (NYSE:MRK): Merck’s once-weekly diabetes drug approved in Japan