By tomorrow, the big drugmaker hopes to win FDA approval for a drug that combines its relatively new Januvia pill with generic metformin as a better way of controlling type 2 diabetes.

Wall Street is getting excited. In a research note issued this morning, John Boris of Bear Stearns forecasts the Januvia ‘franchise’ to generate $864 million this year, rising to $3.2 billion by 2014, with the new combo pill accounting for about one-third of the total. He looks for the new Janumet, as its been dubbed, to become available early next month.

His rosy predictions reflect, in part, the failure of Novartis to succeed in winning FDA approval for its Galvus pill. Every day of delay is another dollar flowing into Merck’s treasury. But Boris also foresees Merck’s Gardasil and Rotateq vaccines generating more revenue than expected and so has raised his estimates for the year.

With predictions like this, Merck investors won’t need an insomnia pill to sleep better at night.

[tags]Diabetes, Janumet, Januvia, Merck[/tags]