Merck recently presented promising results from the Phase 3 ZENITH trial for its drug WINREVAIR, but the company's stock performance over the past month tells a different story, declining by 3.3%. This decrease in share price coincides with broader market trends, including steep losses in major indices due to looming tariffs and economic uncertainty, which have also impacted Merck's peer companies. Despite the positive drug trial outcomes and regulatory progress with CAPVAXIVE and subcutaneous pembrolizumab, overall market conditions appear to have overshadowed these achievements, contributing to the company's underperformance in March.

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Over the past five years, Merck's total shareholder return, including share price and dividends, amounted to 35.85%. This return reflects various strategic measures and transformative developments that bolstered its market position. The company's oncology portfolio experienced significant growth, with KEYTRUDA being a central pillar in advancing cancer treatment approvals internationally, which substantially contributed to Merck's revenue streams. The company also faced challenges, such as competitive pressures and regulatory hurdles impacting the market dynamics for GARDASIL, particularly in China.

Merck reported a very large earnings growth last year compared to its average over the previous five years, highlighting improved operational efficiency and robust product performance. Continued investments in research and development, especially in oncology and cardiometabolic sectors like WINREVAIR, underscore Merck’s commitment to innovation. Despite these long-term achievements, the company's one-year total shareholder return underperformed the US market, returning 5.8%, and the US Pharmaceuticals industry, which saw a 2% decline.

Review our historical performance report to gain insights into Merck's track record.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:MRK.

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