Tialis Secures £50m Contract Extension, Shares Surge 36%

Tialis Essential IT shares surged 36% after announcing a £50m contract extension with a long-standing client. The five-year agreement expands existing work and provides a range of support services. The deal strengthens Tialis's order book, boosts revenue visibility, and marks a clear endorsement of the company's performance. The shares rose 22.5p to 85p.

Merck & Co., Inc. has unveiled a comprehensive $3 billion cost-cutting and reinvestment strategy aimed at mitigating the impending patent expiry of its blockbuster drug Keytruda in 2028. The plan, announced on September 2, 2025, includes a global reduction of 6,000 jobs, facility streamlining, and a significant allocation to R&D and production centers. The strategic moves underscore Merck's commitment to innovation and portfolio diversification.

Key elements of Merck's strategy include a $1 billion investment in a new Delaware biologics center to boost Keytruda production and R&D. Additionally, $895 million will expand a Kansas animal health facility. These investments are part of Merck's broader plan to accelerate the development of next-generation therapies. The company is also focusing on strategic acquisitions, such as the $10 billion acquisition of Verona Pharmaceuticals, which added a first-in-class COPD treatment to its pipeline.

To extend Keytruda's lifecycle and delay biosimilar competition, Merck is prioritizing lifecycle management. The company has expedited the approval of a subcutaneous (SC) formulation of Keytruda, expected to launch in 2025. This reformulation offers greater patient convenience and could capture a significant market share before biosimilars enter. Additionally, Merck has expanded Keytruda's indications to include neoadjuvant/adjuvant settings for triple-negative breast cancer and head and neck squamous cell carcinoma.

Despite the projected decline in Keytruda sales post-2028, Merck's 2025 revenue guidance remains robust at $64.3–$65.3 billion. Analysts project non-GAAP EPS of $8.87–$8.97 for 2025, with a Zacks Consensus price target of $145 per share. The company's cost discipline and reinvestment strategy are critical to maintaining this trajectory.

Merck's $3 billion reinvestment strategy exemplifies strategic preparedness in a post-patent world. By leveraging cost savings to fund innovation, diversifying its portfolio through acquisitions, and extending Keytruda's lifecycle, the company is positioning itself to weather the patent expiry storm. While challenges remain, such as declining Gardasil sales in Asia, Merck's focus on operational efficiency and R&D agility provides a compelling case for long-term value preservation.

References:
[1] Merck unveils $3B cost-cutting plan. [https://www.fiercepharma.com/pharma/merck-joins-big-pharma-cost-cutting-crowd-revealing-plan-save-3b-annually-through-2027]
[2] Merck Cuts $3 Billion in Costs as Keytruda Reign Nears End. [https://www.bloomberg.com/news/articles/2025-07-29/merck-mounts-3-billion-revamp-as-keytruda-price-pressure-looms]
[3] May 2025: Merck's Scheme to Product Hop Keytruda. [https://www.i-mak.org/2025/05/05/may-2025-mercks-scheme-to-product-hop-keytruda/]