Market Update: Merck & Co Inc (NYSE:MRK) – FDA approves Merck drug to reverse effects of muscle relaxants

[Reuters] – Merck & Co Inc.’s drug to reverse the effects of muscle relaxants used during surgery has won U.S. approval. The Food and Drug Administration said on Tuesday it approved the drug, Bridion, to reverse the effects of deep paralysis caused by rocuronium and vecuronium, muscle relaxants used at the beginning of surgery to help doctors insert a breathing tube. Analysts expect the drug, known generically as sugammadex, to generate annual sales of $557 million by 2020 according to Thomson Reuters data. Read more on this. Merck & Co. Inc. (MRK) , with a current market cap of $147.78B, opened this morning at $52.48. During the trading session, MRK traded between $52.23 to $53.19 with a trailing 52-week range being $45.69 to $63.62. Merck (MRK) shares are currently priced at 14.62x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s -2.34x earnings multiple for the same period. And for passive income investors, the company pays shareholders $1.84 per share annually in dividends, yielding 3.53%. Consensus earnings for the current quarter by the 15 sell-side analysts covering the stock is an estimate of $0.91 per share, which would be $0.04 better than the year-ago quarter and a $0.02 sequential increase. Furthermore, our analysis shows the full-year EPS estimate to be $3.57, which would be a $0.08 better when compared to the last year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $10.31 Billion. If reported, that would be a 1.62% decrease over the year-ago quarter. Recently, Piper Jaffray Initiated MRK at Neutral (Jun 17, 2015). Previously, MKM Partners upgraded MRK from Neutral to Buy. The average price target for MRK shares by the analysts covering the stock is $62.67, which is 19.42% above where the stock opened this morning. See more in (NYSE:MRK) Similar Articles: Stock Update (NYSE:MRK): Panel recommends Merck & Co continue cholesterol drug study Company Update (NYSE:MRK): Merck’s once-weekly diabetes drug approved in Japan Market Update (NYSE:MRK): European Commission Approves Merck’s Anti-PD-1 Therapy, KEYTRUDA® (pembrolizumab), for Both First-line and Previously-treated Patients with Advanced Melanoma