Merck (MRK.US) anticipates its top-selling drug Keytruda to be part of the US "bulk procurement" negotiations in 2026.

Merck & Co. (MRK.US) said it expects its best-selling drug Keytruda to be selected for price negotiations by the US government next year, as the Inflation Reduction Act (IRA) allows the government to negotiate prices for high-priced drugs. The company noted in a filing with the US Securities and Exchange Commission that the US Department of Health and Human Services, which oversees programs such as Medicare, has selected its best-selling drug Januvia as one of the first products for IRA price negotiations, with the set price to take effect in January 2026. Merck added that its drugs Janumet and Janumet XR have been selected for the second round of negotiations, with the set price to take effect in January 2027. Merck said: "The Company expects that HHS will select Keytruda for subsequent IRA pricing in 2026, with the price to take effect on January 1, 2028, and therefore expects Keytruda sales in the US to decline thereafter." Merck reported total 2024 sales of $64.2 billion, with Keytruda contributing $29.5 billion. Keytruda is Merck's best-selling product, approved globally for multiple indications, by blocking a protein called PD-1 to help the body's immune system fight cancer. Keytruda's key patents are also reported to expire in 2028. The company has been developing a more manageable product to help boost its profitability.