Merck & Co., Inc. (MRK): It Is Not Worth It

In a patch of good news, Merck does have an exciting next-generation psoriasis treatment in phase 3 development. A unique mechanism of action would make MK-3222 a first-in-class treatment and potential blockbuster should it eventually gain approval from the FDA. The first three biologic therapies approved for psoriasis raked in a combined $19.64 billion in 2012. That includes sales to patients with other inflammatory diseases, but it shows just how successful MK-3222 could be. With several years to go before the conclusion of trials, however, investors may be better off waiting for the story to develop.

Foolish bottom line
Weighing the risks against the potential rewards can be difficult for any investment. However, I think it is pretty clear-cut here. I would not invest in Merck stock right now. Staying afloat with a sinking Singulair may be considered a “win” as numbers come rolling in during subsequent quarters, but I can see a lot more scenarios where even that doesn’t happen. Besides, there are too many other established pharmaceutical and biotechnology companies with brighter futures than the company.

The article Merck Stock Isn’t Worth It originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and emerging technologies.The Motley Fool recommends Gilead Sciences and Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

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