Overview
- Barclays initiated coverage of Merck with an Overweight rating and a $140 price target, citing “first‑in‑class” launches and key 2026 data readouts.
- The Wall Street Journal reports Merck plans to split its pharmaceutical operations into separate oncology and non‑oncology units to reflect the central role of Keytruda.
- Keytruda generates nearly half of company revenue and faces U.S. loss of exclusivity in 2028, with a newly approved subcutaneous formulation positioned to ease administration.
- Merck is broadening revenue sources with newer products including Winrevair, now at an annualized sales run rate above $1 billion, and the pneumonia vaccine Capvaxive.
- Competition is intensifying as Summit Therapeutics’ ivonescimab beat Keytruda in a head‑to‑head trial for certain PD‑L1‑high non‑small cell lung cancer patients.