Becker Private Equity & Business Podcast
Merck’s 11% Drop: A Few Quick Points 2-4-25
Tue, 04 Feb 2025
In this episode, Scott Becker breaks down Merck’s 11% stock decline, discussing its strong 2024 performance, concerns over slower growth in 2025, a weak drug pipeline, and upcoming patent expirations.
Chapter 1: What caused Merck's 11% stock drop?
Chapter 2: What were Merck's financial highlights for 2024?
This is Scott Becker with the Becker Private Equity and Business Podcast. Today's discussion is Merck. Merck is down 11% and we'll go through three to five quick points. Merck is a drug maker, vaccine maker. It's got a number of things going on. 2024 was a great year for Merck, up 7% in revenues and knocked earnings per share out of the box. So a great year, about $64 billion in revenues overall.
Chapter 3: What are the concerns for Merck's growth in 2025?
Chapter 4: How does Merck's drug pipeline affect its future?
That's the good news. The bad news is they're projecting a slower growth in 2025. So that's the bad news. They're projecting barely any growth. That's let the stock to be down about 10%, 11% today. Right onto that. They've got a weak pipeline for new drugs. They've got some expirations on patents on some of their most important drugs.
And all the drug makers that make vaccines are a little bit concerned about RFK Jr. being confirmed as the chair of the Department of Health and Human Services. Just fascinating. Different topic, different discussion again. Not an anti-Trump guy, but I'm certainly not an RFK fan. It is what it is. Thank you for listening to the Becker Private Equity Business Podcast.
That's the story today with Mark. Just fascinating. Again, call Scott Becker anytime, 773-766-5322. Thank you very, very much.