One of the reasons investors look to Big Pharma stocks is their ability to handle the setbacks that their smaller competitors can't. But even Merck (NYSE:MRK), whose roster of blockbuster drugs numbered 11 last year, can only handle so many setbacks. And there's been no shortage of them for the Dow component lately, pressuring shares over the past three months while the Dow Jones Industrial Average and its blue-chip pharmaceutical peers have risen around 10%.
However, positive news emerged today to break Merck out of this holding pattern. Are the gains setting investors up for more disappointment? In the following video, Brenton Flynn outlines the news behind today's move and some historical context that explains the reaction.
Brenton Flynn and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
What Happened in the Stock Market Today
On a day stocks bounced up and down, shares of Energizer Holdings rose on acquisition news, and Merck reported positive results in a lung cancer trial.
These 3 Dividend Giants Are Safer Than You Think
Concerns about these stocks and their dividends are overblown.
Why 2017 Was a Year to Forget for Merck & Co. Inc.
Everything looked OK for the drugmaker until Merck delivered an unwelcome October surprise.