Merck (NYSE:MRK), the well-known giant of the pharma industry, has faced a number of headwinds lately. A recent FDA rejection and patent expirations preceded a lukewarm second quarter, where the company reported an 11% year over year drop in total sales.

It wasn't all doom and gloom for the drugmaker last quarter, however. In the following video, taken from the Motley Fool's health care show Market Checkup, analysts David Williamson and Max Macaluso discuss the highlights from the company's second quarter and the competitive landscape Merck is facing in the diabetes space and emerging markets.