Merck & Co. Launches $3 Billion Plan to Boost Growth Amid Keytruda Patent Expiry

Merck & Co. launches $3 billion plan to reinvest in oncology and cardiometabolic diseases ahead of Keytruda patent expiry in 2028. The company also presents new data on cardiovascular conditions, reports positive topline results from Phase 3 trials, and secures FDA approval for a preventive RSV therapy. Additionally, Merck pursues strategic growth through acquisitions, including a planned $10 billion purchase of Verona Pharma to expand its lung disease portfolio.

Merck & Co., Inc. (NYSE: MRK) has announced a significant strategic move to bolster its pipeline of innovative therapies. The company has launched a $3 billion plan to reinvest in oncology and cardiometabolic diseases, aiming to sustain growth despite the anticipated patent expiry of its blockbuster cancer therapy, Keytruda, in 2028. This initiative underscores Merck's commitment to addressing high unmet medical needs and maintaining its position in the pharmaceutical industry.

At the European Society of Cardiology Congress 2025, Merck presented new data on cardiovascular conditions, including atherosclerotic cardiovascular disease, pulmonary hypertension, and heart failure with reduced ejection fraction. The company's Phase 3 VICTOR and VICTORIA trials for VERQUVO (vericiguat) demonstrated reductions in cardiovascular death and heart failure hospitalizations, providing promising insights into the treatment of chronic heart failure.

Additionally, Merck reported positive topline results from its Phase 3 CORALreef trials of Enlicitide Decanoate for hyperlipidemia. The company also secured FDA approval for ENFLONSIA, a preventive RSV therapy for infants, supported by CDC guidance. These developments further illustrate Merck's dedication to advancing its portfolio and addressing critical healthcare needs.

In pursuit of strategic growth, Merck has also announced plans to acquire Verona Pharma for approximately $10 billion. This acquisition aims to expand Merck's lung disease portfolio and strengthen its position in the respiratory therapy market. While challenges persist with the slowed HPV vaccine Gardasil uptake in markets like China and Japan, the company continues to optimize global operations and focus on innovative product launches.

Overall, Merck's strategic initiatives demonstrate a commitment to innovation and growth in the face of upcoming patent expirations and competitive pressures. Investors should closely monitor these developments to gauge the potential impact on Merck's future performance.

References:
[1] https://simplywall.st/stocks/us/pharmaceuticals-biotech/nyse-mrk/merck/news/does-mercks-mrk-new-oncology-milestones-signal-a-shift-in-it
[2] https://finance.yahoo.com/news/merck-co-inc-mrk-launches-072723442.html
[3] https://www.merck.com/news/merck-provides-new-results-for-verquvo-vericiguat-in-patients-with-chronic-heart-failure-and-reduced-ejection-fraction/