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Goldman upgrades Merck, calls it one of its top stocks, cites Keytruda lung cancer breakthrough

John Melloy

Goldman Sachs upgraded shares of Merck MRK to buy from neutral and named it to its Americas Conviction List of favorite stocks on Monday because of potential booming sales from the drugmaker's blockbuster lung cancer treatment Keytruda. Merck shares rose 2.4 percent in premarket trading on the Goldman call. "We believe the narrative for this company is quickly changing with the success of Keytruda (a potential $16bn asset by 2025E) driving a significant shift in product mix from a large primary care evolving into a specialty biopharma," Jami Rubin wrote in a note to clients.