Shares of Merck closed flat as the market digests the FDA rejection of new insomnia drug suvorexant. However, this rejection is not out of the blue despite a positive FDA advisory committee vote for the drug. However the FDA's rejection is more nuanced than a simple concern over manufacturing, safety, or efficacy.
In this video, health-care analyst David Williamson discusses why the FDA is holding up approval for this drug, what type of potential Suvorexant has for Merck, and highlights another drug in the big pharma's pipeline investors should be looking forward to as well.
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The article Why the FDA Rejected This New Insomnia Drug originally appeared on Fool.com.David Williamson owns shares of Merck. Follow David on Twitter @MotleyDavid. The Motley Fool has no position in any of the stocks mentioned. 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.