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.

Rising health-care costs continue to be a hotly debated topic, and even legendary investor Warren Buffett called this trend "the tapeworm that's eating at American competitiveness." To learn more about what's happening to the health-care system -- and how to potentially profit from this trend -- click here for free, immediate access.


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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Investing in Real Estate

Learn the basics of investing in real estate.

View Course »

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »

Add a Comment

*0 / 3000 Character Maximum