Merck is one of the largest pharmaceutical companies in the world. It has a strong product lineup in cancer, cardiometabolic diseases, pediatric diseases, and vaccinations. Merck has a pipeline of drugs slated to arrive in the future, and it has also established a presence in animal health that provides steady growth. Merck, being one of the big pharma companies, has pricing power and scale. There is plenty of interest in pharmaceutical stocks as the situation with the pandemic is still evolving. The pharmaceutical sector is seen as an evergreen one and picked up significantly post the March 2020 market crash. Leaders of the industry like Merck are the pharmaceutical stocks to buy in 2021. Companies that focus on product development and innovation tend to perform well once their products clear regulatory milestones.
Some More Background About Merck
Merck is a German pharmaceutical major headquartered in Darmstadt. The company’s US subsidiary was interestingly nationalized by the US in 1917. However, it was privatized again in 1919 when George Merck, a member of the founding Merck family, repurchased the stock of the subsidiary. Merck is one of the oldest pharmaceutical majors. It can trace its origins back to the 17th century when Friedrich Jacob Merck operated an apothecary. Friedrich took over a pharmacy and used its labs to develop drugs and then manufacture them in bulk. The management of Merck joined the Nazi party during the World War era, and the company suffered losses due to bombing. However, Merck survived the war and then grew through acquisitions and organic growth. Today, it is one of the world’s largest pharmaceutical companies. Investors seeking to buy pharmaceutical stocks now could consider Merck as a potential option.
Merck’s stock closed at $77.88 on 23rd April 2021. The stock had risen 2.15% over the preceding 30 days and was trading at a healthy 3.34% dividend yield. The stock is only up 7.6% since the March 2020 market crash.