Skip to Content
Morningstar
Get 14 Days Free

Merck & Co Inc MRK

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Coronavirus to Create $39 Billion Vaccine Market and $10 Billion Treatment Market in 2021

Karen Andersen, CFA Sector Strategist

Analyst Note

| Karen Andersen, CFA |

Following a year with more than 83 million reported cases and 1.8 million reported deaths globally due to COVID-19, 2021 begins as two newly authorized vaccines are distributed to high-priority populations in the United States and Europe. These mRNA vaccines from Pfizer/BioNTech and Moderna have set a high bar for efficacy and safety, and they appear poised to ramp up supply and dominate the U.S. market throughout the first half of the year, supporting a foundation for herd immunity in the U.S. by midyear. With additional support from Johnson & Johnson, Novavax, AstraZeneca, and Chinese and Russian vaccine programs, global herd immunity looks achievable by 2023.

Read Full Analysis

Company Profile

Business Description

Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. Additionally, Merck sells animal health-related drugs. From a geographical perspective, close to 40% of the firm's sales are generated in the United States.

Contact
2000 Galloping Hill Road
Kenilworth, NJ, 07033
T +1 908 740-4000
Sector Healthcare
Industry Drug Manufacturers - General
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type High Yield
Employees 71,000

Related

Stock Strategist Industry Reports
Biopharma Companies With COVID-19 Treatments See $10 Billion Market in 2021
We expect quickly declining sales potential after that, however.
Damien Conover
Stock Strategist Industry Reports
COVID-19 Vaccine Distribution and Herd Immunity to End Pandemic
Successful vaccine development and rollout will boost industry goodwill and reduce ESG risk, but we’re keeping our valuations steady.
Karen Andersen
Market Update
The Value Rebound Is Good News for Dividend Investors
Equity income is well-positioned, both short- and long-term.
Dan Lefkovitz
Market Update
Digging Into Berkshire Hathaway’s Portfolio
Morningstar’s Global Risk Model reveals how the investment giant’s equity holdings stack up on 11 measures of risk.
Amy C. Arnott
Stock Strategist Industry Reports
Implementation of Trump's Drug-Pricing Orders Unlikely
We don't foresee any impact on pharma companies' moats or valuations.
Damien Conover
Our Picks
3 Undervalued Stocks in Berkshire's Portfolio
We think these holdings are bargains.
Susan Dziubinski
Commentary
Gender Diversity on Corporate Boards Is Good for Investors
We screened our coverage universe for standout companies with diverse boards of directors.
Sachin Nagarajan
Our Picks
5 Cheap Stocks With Growing Dividends
These heavily weighted names in the Morningstar US Dividend Growth Index are all at least 20% undervalued.
Susan Dziubinski
Stock Strategist Industry Reports
We Still Expect a Strong U.S. Economic Recovery
Neither the U.S. election outcome nor the coronavirus third wave will derail it.
Preston Caldwell
The Short Answer
Newsworthy Stocks Aren't Always Great Investments
We examine the value of some popular companies.
Sachin Nagarajan
Stock Analyst Update
Merck Posts Strong Third Quarter
We continue to view Merck as undervalued, with the market not fully appreciating the firm’s strong immuno-oncology platform.
Damien Conover
Commentary
The Week Ahead: Google, Amazon, Facebook, and Apple to Report Earnings
We look forward to a week jam-packed with earnings reports from big companies.
Carole Hodorowicz
Fund Spy
This ESG Fund From Vanguard Is Off to a Good Start
The managers of the firm's first actively managed environmental, social, governance fund take a sensible, concentrated approach.
David Kathman
Our Picks
24 Stocks for 2030
We think these companies are well positioned to benefit from one of five key trends during the next decade.
Susan Dziubinski
Investing Specialists
Karen Andersen: The Race for a COVID-19 Vaccine
The Morningstar healthcare strategist discusses the latest on COVID-19, including virus forecasts and vaccine updates from the leading biotech and pharma companies.
Christine Benz
Stock Strategist Industry Reports
Slow Burn Likely Until Coronavirus Vaccines Are Widely Available
Resurgences in outbreaks make it clear that ending the pandemic will require more than diagnostic testing, contact tracing, and social distancing.
Karen Andersen
ETF Specialist
Value Investing Revisited
The methods may need fine-tuning, but fundamentals still drive returns.
Alex Bryan
Stock Strategist Industry Reports
Innovation Supports Growth at Big Pharma/Big Biotech Companies
Moats and returns on invested capital look stable for companies with a solid list of pipeline drugs.
Damien Conover
Stock Analyst Update
Drug Pricing Executive Orders Not Likely to Affect FVEs
We don’t expect these actions by President Trump to significantly affect our fair value estimates or moat ratings due to limited details, challenging implementation, and only minor impacts.
Damien Conover
Commentary
The Week Ahead: Pfizer, Facebook, Google, and Apple to Report Earnings
Earnings from big names in industrials, consumer cyclical, finance, and more are also on the calendar for next week.
Carole Hodorowicz