Merck 1.57B Dollar Trade Ranks 77th as Trump-Driven Pricing Pressures Force 3B Cost Cuts by 2027

On July 31, Merck & Co. (MRK) closed at $78.12, down 4.44% with a trading volume of $1.57 billion, ranking 77th in market activity. The stock’s decline coincided with intensified regulatory scrutiny as U.S. President Trump issued letters to 17 major pharmaceutical firms, including Merck, demanding price reductions to align with international benchmarks. The administration’s push for “most-favored-nation” pricing pressures pricing power across the sector, with Merck’s oncology and vaccine portfolios under particular focus.

Merck announced a $3 billion annual cost-cutting initiative by 2027, targeting operational efficiency ahead of Keytruda’s patent expiration in 2028. The move aims to offset potential revenue erosion from competitive pressures and regulatory-driven price caps. Despite a Q2 earnings miss and revised 2025 sales guidance to $64.3–65.3 billion, the company’s dividend sustainability and pipeline advancements, including a Phase 1 Epstein-Barr virus vaccine trial, remain key fundamentals. Institutional ownership at 76% underscores confidence in its long-term resilience.

A backtested trading strategy focused on high-liquidity stocks, including MRK, delivered 166.71% returns from 2022 to July 30, 2025, outperforming the S&P 500’s 29.18% by leveraging short-term momentum. The approach’s emphasis on volume-driven entries highlights Merck’s role in capitalizing on market volatility amid sector-specific challenges.