ABOVE: MRK Stock Chart over last 3 Months.
ABOVE: ZGEN Stock Chart Over Last 3 Months.
Germany 06/05/2008
Merck (NYSE: MRK) announced that it is partnering with ZymoGenetics, Inc. (NASDAQ: ZGEN) and they have initiated a Phase II/III trial of atacicept in patients with systemic lupus erythematosus (SLE).
There are 1.5 Million Americans with Lupus (SLE) with an annual health cost of appproximately 9 billion dollars. If the trial is successful the revenue for both MRK and ZGEN might be several billion dollars when atacicept hits the market. Assuming that Atacicept gets approved by the FDA it could be on shelves as soon as mid 2010.
Partly because of the recent decrease in stock prices (Dow down nearly 400 pionts, June 6th), both MRK and ZGEN decreased in price. MRK’s 52 week range of stock price varied from 36.80-61.62, on June 6th it was down 1.40 and closed at 37.49. Therefore, MRK is near its 52 week low and this may represent a good chance to buy and establish a long position as an investor. As well, ZGEN has ranged from 8.09 to 16.28 over the last 52 weeks and it also closed down .50 on June 6th at 8.51. As with MRK, this may be a good time to go long and buy ZGEN as an investment.
