Sell Rating for Merck & Company Amid Vaccine Policy Uncertainty and Strategic Delays

Asad Haider, an analyst from Goldman Sachs, maintained the Sell rating on Merck & Company (MRK – Research Report). The associated price target remains the same with $99.00.

Asad Haider has given his Sell rating due to a combination of factors surrounding Merck & Company’s current situation. One of the primary concerns is the ongoing uncertainty related to vaccine policies, particularly in light of the changes within the Advisory Committee on Immunization Practices (ACIP). The recent replacement of vaccine experts with new members who have previously expressed skepticism about vaccines adds to the unpredictability, which could impact the timing of the launch of Merck’s RSV vaccine, Enflonsia, and potentially affect the dosing schedule for Gardasil, their HPV vaccine.
These uncertainties pose a risk to Merck’s revenue streams, especially if the ACIP votes for a reduced dosing schedule for Gardasil, which could negatively influence investor sentiment. Although the financial impact might be limited at the company level, the lack of clarity on these issues is concerning, especially when positive developments like the Winrevair CADENCE trial and oral PCSK-9 readouts are not expected until later in the year. Additionally, investors are still awaiting strategic business development and merger/acquisition moves from Merck as potential growth drivers.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MRK in relation to earlier this year.