Merck: There’s Only One Way to Outperform Now

Merck's ( MRK ) shares have gained 40% during the past 12 months as its lung-cancer treatment Keytruda performed surprisingly well in trials , while Bristol-Myers Squibb's ( BMY ) competing treatment flopped . Still, it isn't all good news for Merck, as last night it announced that it halted a trial for its Alzheimer's disease treatment . While the news appears to have been expected--the stock is barely down --further gains for Merck's stock will depend almost entirely on Keytruda, writes Leerink's Seamus Fernandez and team. They explain why: