Topic: How To Invest

Power Growth Investor Hotline – Friday, April 21, 2023

Article Excerpt

MERCK & CO. INC., $115.37, is a buy. The drugmaker (symbol MRK on New York) is a pharmaceutical leader in oncology, acute-care and animal health drugs as well as vaccines. Merck is now buying Prometheus Biosciences Inc. for $10.8 billion. San Diego, California-based Prometheus (symbol RXDX on Nasdaq) is a clinical-stage biotechnology company focused on autoimmune treatments, such as PRA023. It treats illnesses such as ulcerative colitis and Crohn’s disease. PRA023 is an antibody that binds TL1A, a protein associated with both intestinal inflammation and fibrosis. Phase II studies have demonstrated the best-in-class potential for the drug, which is a potential disrupter in the inflammatory and immunology space and has a pipeline that could stretch beyond inflammatory bowel disease, or IBD. IBD is the umbrella term used to describe diseases including Crohn’s and ulcerative colitis, both of which cause chronic inflammation of the gastrointestinal tract, leading to diarrhea, rectal bleeding, abdominal pain, fatigue and weight loss. Going forward, Merck plans to launch a late-stage ulcerative…