Merck to receive $269 million for production of COVID-19 vaccines and drugs

  • Merck KGaA (NYSE:MRK) has announced that the U.S. government has agreed to provide the company with $268.8M to help in its efforts to accelerate the production of COVID-19 vaccines and medicines.
  • With the funding from BARDA (Biomedical Advanced Research and Development Authority), the company will adapt several of its existing manufacturing facilities for the production of COVID-19 medicines and vaccines, a statement from the company said.
  • The investment is in addition to more than ~$20B the company has projected for 2020 – 24 as capital investments for expansion of its global vaccines manufacturing network.
  • Merck KGaA also announced that it entered into agreements with Janssen Pharmaceuticals, a unit of Johnson & Johnson (NYSE:JNJ) to support the production of its COVID-19 vaccine which received the FDA’s emergency use approval, recently.
  • The company is expected to commission its U.S.-based facilities to produce raw materials and complete the fill-and-finish process of the manufacturing.

    Merck KGaA & Co. fundamentals

    For this year the company, located in Kenilworth revenue will be around 52.51 billion USD. This is according to the average of the analysts' estimates. This is slightly more than 2020's revenue of 47.99 billion USD.

    Historical revenues and results Merck KGaA & Co plus estimates 2020

    aandelenanalyses

    The analysts expect for 2021 a net profit of 16.58 billion USD. The majority of the analysts expects for this year a profit per share of 6.55 USD. The price/earnings-ratio therefore equals 11.02.

    Huge dividend Merck KGaA & Co

    Per share the analysts are expecting a dividend of 2.57 USD per share. Merck KGaA & Co's dividend yield thus equals 3.56 percent. The average dividend yield of the pharmaceutical companies equals a moderate 0.38 percent.

    Recent target prices around 92 USD

    The most recent recommendations for the pharmaceutical company are from Cowen and Company, RBC Capital Markets and UBS .

    Merck KGaA & Co's market capitalization is based on the number of outstanding shares around 183.24 billion USD. The Merck KGaA & Co stock was the past 12 months quite unstable. Since last March the stock is 9 percent lower. This year the stock price moved between 65 and 88 dollar.

    Historical stock prices Merck KGaA & Co2007-2021

    financial analysis merck&co

    Click here for dividend Merck & Co. On Thursday the stock closed at 72.17 USD.

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