Can Merck Recover From This FDA Rejection?

Merck announced this week that its experimental anesthesia reversal drug sugammadex was rejected by the Food and Drug Administration. This isn't the only drug that the big pharma company has failed to get past the FDA this year; its insomnia drug suvorexant was also rejected earlier in 2013. What does this most recent rejection mean for investors, and is Merck making the right changes to its research and development structure? In the following video, a segment from The Motley Fool's health care show Market Checkup, analysts Max Macaluso and David Williamson discuss the impact of the FDA's decision.

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Max Macaluso, Ph.D. owns shares of Gilead Sciences. The Motley Fool recommends Gilead Sciences. 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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