Top 5 Drug Companies in USA and Their China Reliance

4. Merck & Co., Inc. (NYSE:MRK)

Total Revenue in 2021: $48.7 billion

Merck & Co., Inc. (NYSE:MRK) operates through its Pharmaceutical and Animal Health segments. It focuses on the areas of oncology, hospital acute care, immunology, and neuroscience.

On January 4, Geoff Meacham at BofA upgraded Merck & Co., Inc. (NYSE:MRK) shares from Neutral to Buy.

Over the past 10 years, Merck & Co., Inc. (NYSE:MRK) has seen its revenues grow by 27%. Over the same period, the company’s earnings per share have also increased by 184%. It also has a dividend compound annual growth rate of 7% over the past five years, and a dividend yield of 2.74% as of January 31. China is one of Merck & Co., Inc.’s (NYSE:MRK) eight strategic countries, and it focuses on the pharmaceutical, chemical, and life science sectors in the Chinese market, making it heavily reliant on the country.

Baron Funds, an investment management company, mentioned Merck & Co., Inc. (NYSE:MRK) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Merck & Co., Inc. (NYSE:MRK) is a large-cap pharmaceutical company with a deep heritage in drug discovery. Share gains were led by the continued growth of key asset Keytruda, the leading immune oncology agent used to treat a variety of cancers. Shares also benefited from increased investor interest as Merck proves its ability to scale its Gardasil vaccine that had previously been constrained by supply issues. We retain long-term conviction, as we expect Keytruda to solidify its position as the best-selling biopharmaceutical drug of all time.”