Yahoo Finance Merck to Cut Price of Few Drugs Amid Drug Pricing Controversy
Merck MRK announces a 60% cut in U.S. list prices for its hepatitis C drug, Zepatier. It will also lower the list price of some other drugs by 10%. The company also said it would not increase the average net price of other medicines in its portfolio of products by more than the inflation rate, annually. Merck claims that it has been taking measures to reduce prices. It also said that, in 2017, net prices across Merck’s U.S. product portfolio declined by 1.9%.
Year to date, shares of Merck have increased 11.1% against the industry’s decline of 1.7%.
The healthcare sector is in the spotlight due to exorbitant drug pricing. Earlier this month, President Donald Trump, in a tweet, criticized pharmaceutical giant, Pfizer, Inc. PFE for its increasing prices of several prescription drugs, effective Jul 1.
Trump warned that the administration will act in response, and Pfizer and other U.S. drugmakers should be “ashamed” that they have raised drug prices for “no reason”. The tweet also said that by raising drug prices in the United States, these drug companies are offering “bargain basement prices” overseas.
A day after Trump’s tweet, Pfizer said that it will defer its recent price increases of several prescription drugs, maximum until the end of the year. Pfizer’s chief executive officer (CEO), Ian Read, announced the decision, following an “extensive discussion” with the President. Read said the prices of these medicines will return to their pre-Jul 1 levels as soon as technically possible. He also said that the prices will be deferred until the President’s drug-pricing blueprint goes into effect or until the end of the year, whichever is sooner.
The drug-pricing controversy has grabbed headlines since September 2015, when several companies were criticized for overpricing their drugs. These included Mylan MYL , which increased the price of EpiPen, and Valeant Pharmaceuticals International, Inc. , for its strategy of acquiring companies and selling their drugs at higher prices.
Swiss pharma giant, Novartis NVS, in its second-quarter conference call held earlier this week, said it won’t raise U.S. drug prices this year.
Merck & Co., Inc. Price
Merck & Co., Inc. Price | Merck & Co., Inc. Quote
Zacks Rank & Stocks to Consider
Merck has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
Mylan N.V. (MYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
