In the following video, Fool contributor Maxxwell Chatsko provides an update on the outlook of Merck's best-selling type 2 diabetes drug franchise of Januvia/Janumet. While the franchise reeled in about $5.75 billion in 2012, it stumbled out of the gates in 2013 and surprised investors with declining overall sales. Merck has been hit especially hard by the patent cliff, so this could become a worst-case scenario for investors. Maxxwell cautions that while the slide may be temporary, investors absolutely need to know and watch two key areas in the rest of 2013.

Can Merck beat the patent cliff?
This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, The Fool tackles all of the company's moving parts, its major market opportunities, and reasons to both buy and sell. To find out more click here to claim your copy today.

The article 2 Red Flags for Merck's Type 2 Diabetes Blockbuster originally appeared on Fool.com.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and emerging technologies. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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