Merck's Battle with Patent Expiry Threatens Future Profits
Merck & Co projects 2026 sales below Wall Street's expectations due to the loss of patent exclusivity on drugs like Januvia. Despite a strong quarter driven by Keytruda's demand, legacy products face declines. Merck seeks new deals in oncology and immunology to offset future revenue challenges.
Merck & Co cautioned investors with a bleak forecast for 2026, falling short of Wall Street's expectations due to upcoming patent expirations for key drugs like Januvia.
The drugmaker did, however, report better-than-expected fourth-quarter performance, driven by increased demand for its cancer treatment, Keytruda. Despite this success, concerns remain about future revenue with Merck projecting 2026 revenue to miss analyst estimates.
The company is actively seeking acquisitions to plug the impending financial gap, notably in oncology and immunology sectors, following multimillion-dollar deals with Cidara Therapeutics and Verona Pharma.
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