Jefferies Cuts Price Target On Merck (MRK)

Jefferies & Co. cut the price target on shares of Merck & Co. MRK to $34.50 from $37, but is keeping its Hold rating on shares. In a note sent to clients, Jefferies writes, "The uncertainty regarding the future of vorapaxar will act as a further overhang for investor sentiment on Merck & Co, in our view. Arbitration for Remicade/Simponi rights will continue to compress Merck's multiple and provide downside asymmetry. In the acute coronary syndrome (ACS) study TRACER, vorapaxar will be discontinued and the study is to be closed out. In the secondary prevention TRA-2P study, treatment will be discontinued in patients who previously had a stroke, but continued in patients who had MI or peripheral arterial disease (c.75% of patients). Management stated that the DSMB has not informed them of the reasons for these changes." Shares of MRK lost $2.46 yesterday to close at $34.69, a loss of 6.6%.