Shares of Merck closed flat as the market digests the FDA rejection of new insomnia drug suvorexant. However, this rejection is not out of the blue despite a positive FDA advisory committee vote for the drug. However the FDA's rejection is more nuanced than a simple concern over manufacturing, safety, or efficacy.

In this video, health-care analyst David Williamson discusses why the FDA is holding up approval for this drug, what type of potential Suvorexant has for Merck, and highlights another drug in the big pharma's pipeline investors should be looking forward to as well.

David Williamson owns shares of Merck. Follow David on Twitter @MotleyDavid. 

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