Germany-based Merck KGaA provided an update on its objectives up to 2018 at the company’s 2016 Capital Market Day.
At the Healthcare business, the company aims to obtain approval of one medicine or indication every year starting 2017. Through 2022, Merck expects to generate sales of €2 billion from the products in its pipeline.
Moreover, the company anticipates filling for avelumab for the treatment of metastatic Merkel cell carcinoma this year. Note that avelumab is being developed in collaboration with Pfizer Inc. (PFE - Free Report) .
The Life Science business segment is benefitting from strong demand in the biopharmaceutical space and efficient integration of the Sigma-Aldrich acquisition. The company has realized substantial synergies from this buyout much earlier than planned. By 2016 end, it now expects to leverage €105 million in comparison to the originally planned annually recurring cost synergies of €90 million.
The company has also announced its plans for growth beyond 2018. It expects to generate sales of €4 billion from new products by 2022.
Stocks to Consider
A couple of favorably placed stocks in the health care sector are Incyte Corporation (INCY - Free Report) and Geron Corporation . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Incyte’s earnings estimates for 2016 and 2017 were up a respective 29.4% and 9.8% over the last 60 days. The company has beaten earnings estimates thrice in the last four quarters with an average surprise of 335.16%.
Geron has delivered a positive earnings surprise in each of four trailing quarters, bringing the average beat to 20.78%.
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