Merck shares have been through a long dry spell. Just over a year ago, the share price stood at around 134 US dollars. The share is now only worth around 80 US dollars. Is the turnaround coming now?
Merck shares fall from 134 to 80 US dollars, turnaround?
Enlicitide significantly lowers LDL cholesterol, good tolerability.
P/E ratio of 10, dividend over 4%, share a bargain.
Merck has reached an important milestone with its drug Enlicitide Decanoate, which is currently in development, in two late-stage clinical trials. As the US pharmaceutical company announced on Monday, the drug was able to achieve its main objective - a significant reduction in LDL cholesterol - in both trials.
The orally administered drug is aimed at hyperlipidemia, a lipid metabolism disorder in which excessive amounts of fats accumulate in the blood vessels. The focus is particularly on LDL cholesterol, also known as "bad cholesterol", which is considered a risk factor for cardiovascular disease
Enlicitide was tested on patients with existing heart disease or an increased risk of heart disease. Merck speaks of a "significant" and "clinically relevant" reduction in LDL levels compared to previous standard therapies.
The research results could represent a turning point for the share price.
