Will Merck & Co., Inc. (MRK) Earnings Bounce Back Tomorrow?

Merck also suffered a setback in its pipeline when its insomnia treatment suvorexant was rejected by the FDA. The rejection cited concerns about Merck’s proposals to move patients gradually up to higher dosages of the drug, with the FDA suggesting lower-dosage treatment that will require new manufacturing studies that could delay the release of the drug by a year or more.

Yet Merck still has plenty of pipeline potential. With treatments for osteoporosis, hepatitis C, and atherosclerosis showing varying degrees of promise, Merck has a number of drugs with multibillion-dollar potential if it can push them through the approval process. In particular, analysts believe the market for osteoporosis drugs from rival Amgen, Inc. (NASDAQ:AMGN) and bone-therapy drugs could generate $3 billion in peak sales, and if Merck’s odanacatib can muscle in on even a portion of those sales opportunities, it could be huge for the company’s long-term prospects.

In tomorrow’s Merck earnings report, look closely at the breakdown of the company’s various drug franchises and how much revenue growth they’re each producing. In particular, if Januvia continues to struggle, it’ll put even more pressure on Merck to find ways to get its best candidates through the development pipeline as efficiently as possible.

The article Will Merck Earnings Bounce Back Tomorrow? originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

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