Analyst Note
| Julie Utterback, CFA |Narrow-moat Merck KGaA reported third-quarter operating results that rebounded sequentially from the nadir in the second quarter and even beat Capital IQ estimates. However, management's outlook for 2020 remains roughly in line with our estimates after adjusting for a recently released legal provision related to a patent dispute with Biogen, and we are maintaining our fair value estimate for Merck KGaA.