2) Multiple expansion: "We have become more optimistic on Merck's pipeline and believe that the upcoming data readouts should also raise Street expectations and lead to multiple expansion. ... We see Merck on the verge of five to six years of strong growth." 3) Hepatitis C drug upside: "We believe the Street is significantly underestimating Merck's Hep-C franchise. In the important genotype 1 patients, we believe that Merck's doublet will be competitive vs. Gilead's Harvoni. ... We are becoming increasingly comfortable with the safety profile of Merck's (drug)." He estimates Merck's Hep-C drug sales will grow from $1.5 billion in 2016 to $3.4 billion in 2017, which is 130 percent higher than Wall Street consensus. Read More Biotech charts send warning signal for the market Arfaei expects Merck to finish 2015 strong and sees upside to 2016-2017 financial estimates, which should drive up the company's valuation.