S&P Maintains its BUY Rating on Merck Following the Approval of Juvisync

October 10 00:00 2011

NEW YORK, October 10 (RainbowNewsLine.com) – Analyst Herman Saftlas of S&P Equity Research maintains his BUY rating on the shares of MERCK (NYSE: MRK). The target price is set at $42.

Analyst Herman Saftlas, in a research note published on October 7, mentions that FDA has given its approval to Juvisync which is a blend of simvastatin statin cholesterol agent and Merck’s Januvia treatment for type 2 diabetes. Merck calculated that some 40% of population is not being treated with statins, although American Diabetes Association suggests statin therapy to all diabetics with cardiovascular risk factors. Analyst estimates sales to reach over $7 billion in ’16 from $3.3 billion in ’10 of Merck’s Diabetes franchises. The analyst believes that the ongoing cost saving structure with the launch of new drugs may push Merck’s EPS growth further in coming years.