An important news item today was how data show that although only 1/3 of the teen-agers got vaccinated against HPV (human papiloma virus) that causes cervical cancer, cervical cancer rates have come down by 50% in the USA. Statistical analysis seems to show that it is directly attributable to the vaccine. Ask yourself what it means for the vaccine (Gardasil) use in the USA and the manufacturer Merck (MRK). The one thing that of course remains is to figure out what various percentage increases in demand for the vaccine will do to the bottom line of the company since this is not the only thing that it makes. OK, we got some work cut out for us, right? [Recall my goal in these columns is not to give buy/sell advice but to increase knowledge, and ability to read signals]. Download the last annual report for Merck from its site and the investor relations page or wherever else you can find it, and do some digging before all this gets priced in.
The timing is great since everything including MRK is taking a beating now.
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