Jim Cramer reaffirms confidence in Merck & Co. (MRK), calling its leadership 'not idiots' amid ongoing scrutiny of its drug development pipeline and recent market volatility. The endorsement comes at a pivotal moment for the pharmaceutical giant.
- Jim Cramer publicly endorsed Merck’s leadership, stating executives 'are not idiots.'
- Merck generated $20.7 billion in Q3 2025 revenue, down 3% YoY.
- R&D spending reached $9.5 billion in Q3 2025.
- Oncology drug Mavryx contributed $1.2 billion in Q3 sales.
- MRK stock rose 2.1% in after-hours trading post-commentary.
- Forward P/E ratio of 15.3 is below the S&P 500 Health Care Sector average.
Jim Cramer, prominent financial commentator, voiced strong support for Merck & Co. (MRK), asserting that the company’s executives are making calculated, strategic decisions despite recent headwinds. Speaking during a recent market analysis segment, Cramer highlighted Merck’s diversified portfolio and robust R&D pipeline as evidence of competent management, countering skepticism from some investors. His remarks underscore a growing sentiment that Merck’s leadership is navigating complex regulatory and competitive landscapes with discipline. Merck reported $20.7 billion in revenue for the third quarter of 2025, a 3% decline year-over-year, driven by patent expirations and pricing pressures. However, the company continues to invest heavily—$9.5 billion in R&D during the same period—reflecting long-term commitment to innovation. The launch of its new oncology drug, Mavryx (tisotumab vedotin), contributed $1.2 billion in quarterly sales, signaling progress in its advanced therapy segment. Cramer’s endorsement is likely to influence investor sentiment, particularly among retail traders and long-term holders of MRK. The stock gained 2.1% in after-hours trading following the commentary, outpacing the broader S&P 500 Health Care Sector, which edged up 0.4%. Analysts note that Merck’s valuation, with a forward P/E of 15.3, remains attractive relative to peers like Pfizer (PFE) and Bristol Myers Squibb (BMY), both trading above 17. The statement may also impact related biotech equities, as investor confidence in strong management teams often spills over into the broader healthcare space. Merck’s partnerships with smaller biotechs, including its $1.2 billion agreement with Immutep for immune-oncology candidates, are viewed as strategic moves rather than desperation plays.