Merck stock popped to a six-month high Tuesday after the Dow Jones heavyweight projected $10 billion in peak revenue from its cardiovascular drugs.
The pipeline of near-approval drugs has tripled in size over the last year, Merck said in a presentation. It now includes Acceleron Pharma's sotatercept, a potential treatment for a form of high blood pressure in the lungs. Merck bought Acceleron for $11.5 billion last year in a deal that sent Merck stock higher.
Merck also is working on treatments for blood clots and built-up plaque in the arteries.
On today's stock market, Merck stock advanced 0.3% to 83.72.
Merck Stock: Heart Disease In Focus
Merck sells a myriad of treatments for cardiovascular diseases, including established brands like Zetia and Vytorin. Both are cholesterol meds. It also collaborates with Bayer on heart disease treatments, including Adempas. Adempas treats high blood pressure in the lungs.
Now Merck says it's focusing on areas of unmet need. The company notes half of heart-failure patients die within five years of diagnosis. More than four in 10 patients with pulmonary arterial hypertension — the condition targeted by Adempas and sotatercept — die within five years of diagnosis.
"Existing therapies only treat PAH symptoms, not the underlying cause of the disease," Merck said in its presentation.
Merck expects eight new approvals across its cardiovascular pipeline by 2030. Those approvals would come from five drugs, including sotatercept and Verquvo. The bullish view prodded Merck stock to briefly touch its highest point since late October.
It's also targeting blood clots in the veins or arteries and atherosclerosis, a condition in which built-up cholesterol in the arteries obstructs blood flow. Roughly 85% of cardiovascular deaths are attributed to atherosclerotic cardiovascular disease, Merck said.
Ratings Improving
Shares are forming a cup base with a buy point at 91.50, according to MarketSmith.com.
Merck stock has accelerated since late February. Shares now have a Composite Rating of 94, which puts them in the leading 6% of all stocks in terms of fundamental and technical measures, according to IBD Digital. The drug giant has a Relative Strength Rating of 84, reflecting its strong stock performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
