Merck & Co., Inc. (MRK) Stock Depends on Januvia More Than Ever

Side effects
What’s helped Januvia grow in to a megablockbuster is the relatively mild side effects the drug produces. Doctors hate prescribing a drug to a patient and then having to deal with calls or returns to the office with complaints about side effects.

Given the relatively clean side-effect profile, recent reports that Januvia might be causing pancreatitis and potentially pancreatic cancer are troubling. If the preliminary findings pan out, the side effects could put pressure on sales.

Why Januvia is so important to Merck & Co., Inc. (NYSE:MRK) stock
Jaunivia is now Merck’s top-selling drug after the former top-selling drug, Singulair, recently went off patent protection. In the first quarter, the drop in Singulair sales produced a $1 billion hole that had to be filled. The easiest way to fill that hole is through growth of the top-selling drug. Given the challenges outlined here, I’m not sure Januvia is up for the challenge.

Without revenue growth, you can’t expect Merck stock to move higher.

The article Merck Stock Depends on Januvia More Than Ever originally appeared on Fool.com is written by Brian Orelli.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Johnson & Johnson.

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