Merck (NYSE:MRK) and Pfizer (NYSE:PFE) to develop Type 2 medicine, revenue will be divided on 60-40 ratio

Stocks of the DayRecent media reports just revealed that the pharmaceutical giant Merck & Co., Inc. (NYSE:MRK) will join hands with Pfizer Inc. (NYSE:PFE)   to develop a new drug to treat Type 2 diabetes. Both companies have agreed that the sales from the product will be divided on a 60 40 ratio.

Merck will gain the bigger portion of the revenue. Currently Pfizer is experimenting on its latest drug called ertugliflozin. Merck said that the collaboration will focus on concentrating Pfizer work to develop new medicine.

The company also disclosed that an amount of 60 million US dollars was paid to Pfizer and some additional payments could be made on the basis of clinical trials if the pill gets approval from FDA.

The experiment will also study a combination of metformin with ertugliflozin and the drug combination pills that combine ertugliflozin with Merck’s drug Januvia. Shares of Pfizer gained 46 cents to 30.55 US dollars while Shares of Merck advanced 16 cents to 48.02 US dollars in the afternoon trading.

Shares of Merck added 16 cents to $48.02 in afternoon trading and Pfizer shares gained 46 cents to $30.55.

Coming to the stock performance; Merck & Co., Inc. (NYSE:MRK) in last trading session end up at $47.82 by falling -0.10% with the average volume of 13.98 million shares.  In premarket MRK shares.

The stock price saw week’s volatility of 1.59% and month’s volatility is 1.56%, while the stock price of the company is moving up from its 20 days moving average with 2.71% and isolated positively from 50 days moving average with 7.52%.

Looking at Analytic Ratios; the price to sales ratio of MRK in past twelve months was calculated as 3.05 and price to cash ratio as 8.94. Company return on equity ratio is recorded as 11.47% and its return on assets is 5.96%, and return on investment is 7.33%.

Coming to the stock performance; Pfizer Inc. (NYSE:PFE) in last trading session end up at $30.43 by rising 1.13% with the average volume of 33.02 million shares.  In premarket PFE shares fell -4.53%.

The stock price saw week’s volatility of 2.60% and month’s volatility is 1.77%, while the stock price of the company is moving up from its 20 days moving average with 1.14% and isolated positively from 50 days moving average with 5.81%.

Looking at Analytic Ratios; the price to sales ratio of PFE in past twelve months was calculated as 3.71 and price to cash ratio as 6.69. Company return on equity ratio is recorded as 11.62% and its return on assets is 5.09%, and return on investment is 6.04%.

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