Citi Comments On MRK's Return Of Betrixaban, Maintains EPS Estimate

Citi is maintaining its EPS estimates on Merck MRK. “As expected, Merck returned the worldwide rights to betrixaban, an oral factor Xa inhibitor (anticoagulant) for patients with atrial fibrillation (AF), back to Portola after a pipeline portfolio review,” Citi writes. “We view the decision as a positive, given that MRK would need to run a large outcomes trial. In addition, it would potentially be the fifth new anticoagulant to reach the market, after a 5-6 year lead by Boehringer Ingelheim's Pradaxa to overcome. “We expect MRK to reallocate its betrixaban spending to business development and emerging market growth opportunities. We removed betrixaban from our model ($100M in ‘15E) and retained our EPS estimates.” Merck closed Thursday at $32.72.