Investors obviously think this is April Fools. All my Pharma stocks are up today.
The bipartisan culture of political corruption that supports Big Pharma is very strong.
intercst
4 Likes
But my Merck, while up today, has been hurt, over the last couple months.
Steve
That’s because of falling sales in China for Merck’s Gardasil HPV vaccine.
intercst
I have heard that excuse too. Here’s a snip from an article behind a paywall:
Davis estimated that Gardasil sales in China represent about 1% of Merck’s total revenue. Overall, Merck outperformed analyst expectations with worldwide sales of $64.2 billion, a 7% increase. The company clocked $15.6 billion for the fourth quarter alone, which was also a 7% increase over the same period a year ago.Feb 4, 2025
1% doesn’t seem like the end of the world. More likely, it has been some chatter about the new administration working to lower drug prices, but that narrative no longer seems operative.
Trump Ends Push to Slash Prescription Drug Costs
https://www.thecardiologyadvisor.com/news/trump-ends-push-to-slash-prescription-drug-costs/
Given other recent events, I suspect that any pronouncements about lower drug prices or holding insurance companies accountable, are nothing but a shakedown of the involved companies.
Steve
4 Likes
There was a piece on the CBS evening news about a cancer drug in China that’s twice as effective as Merck’s biggest seller Keytruda (about half of Merck’s annual sales). No doubt this is responsible for the slow decline over the past several months.
intercst
1 Like