It's no secret that decisions from the Food and Drug Administration are incredibly hard for investors to predict. Take for instance the FDA's rejection of Novo Nordisk's (NYSE: NVO ) insulin drugs Tresiba and Ryzodeg in February. The products got the stamp of approval in the EU and Japan -- and approval in the United States seemed like a foregone conclusion -- but the FDA surprisingly decided that data from a cardiovascular outcomes study is necessary before the company can resubmit its application.
Investors were surprised after the decision was announced, and the same situation could happen when the FDA makes a decision on Merck's (NYSE: MRK ) insomnia drug Suvorexant this summer. So far, the data suggests that this drug works well in patients and has a good safety profile. However, does the scientific advisory committee have any concerns with this drug's safety? What could a rejection potentially mean for Merck investors? Health care analyst Max Macaluso discusses these questions in the following video.
Can Merck beat the patent cliff?
This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, The Fool tackles all of the company's moving parts, its major market opportunities, and reasons to both buy and sell. To find out more click here to claim your copy today.