Merck KGaA

MRK: XETR (DEU)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€738.00	Whfkbzn	Nqzdlldrds

Merck KGaA: No Fair Value Estimate Change Even as Evobrutinib Fails in Phase 3 Trials

Julie Utterback

Dec 6, 2023

Narrow-moat Merck KGaA announced that its multiple sclerosis candidate evobrutinib had failed in two Phase III trials. We have fully removed probability-weighted sales of that drug candidate from our model. However, when considering cash flows generated by the conglomerate since our last valuation change in May, our fair value estimates (EUR 171/$38) for Merck have not changed materially. Shares appeared about fairly valued prior to this announcement, but we would not be surprised to see shares fall into undervalued territory on this disappointing news.

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