Street View: Merck's pipeline offers hope amid bearish sentiment

Merck MRK.N said on Tuesday it was extending its pause on Gardasil shipments to China until at least the end of 2025 due to persistent weakness in demand for the blockbuster human papillomavirus vaccine

The drugmaker, which reported lower second-quarter results, had previously said the pause would last at least until the middle of this year

Average rating by 27 analysts is "buy", $100 median PT - LSEG

HOLDING THEIR CARDS CLOSE TO THE CHEST

J.P.Morgan ("overweight") says Merck's story may take time to unfold, especially with some uncertainty around Gardasil, but sees a good risk/reward opportunity at the current stock price, particularly since many investors are currently bearish on the stock

Leerink Partners ("outperform," PT: $107) continues to believe that second-half readouts from Merck's cardiovascular drug Winrevair (for pulmonary hypertension) and pulmonary pipeline candidates could significantly expand the company's long-term revenue potential.

Morgan Stanley ("equal weight," PT: $98) says the focus remains on the loss of exclusivity for Keytruda, Merck's leading cancer immunotherapy, and the company's progress with its pipeline and business development efforts, including the Verona deal

Jefferies ("buy," PT: $141) continues to believe upcoming data from key programs — EyeBio (eye diseases), HIV treatments, sac-TMT (targeted cancer therapy), Winrevair Cadence (heart-lung disease), and TL1A (inflammatory conditions) — could help improve investor sentiment