Merck Faces Future Challenges Despite Current Success
Merck & Co forecasts lower 2026 sales and profits due to post-patent challenges for key drugs like Januvia, despite strong performance from Keytruda. The company's proactive measures include acquisitions and focusing on new treatments. Sales achieved $16.4 billion in Q4, with revenue growth driven by Keytruda.
On Tuesday, Merck & Co predicted that its 2026 sales and profits would fall short of Wall Street expectations due to the impact of losing patent exclusivity on drugs like Januvia. This grim forecast overshadowed a strong fourth-quarter report where the company's revenue was bolstered by the successful cancer drug Keytruda.
The pharmaceutical giant's shares dipped by 1.2% in premarket trading, with projections placing 2026 revenue between $65.5 billion and $67.0 billion, slightly missing the average analyst estimate. CEO Rob Davis highlighted legacy products going off patent as a key issue, but he remains confident in the company's strategic direction.
Merck's adjusted Q4 profit was $2.04 per share, surpassing estimates. Keytruda alone generated $8.37 billion in sales, counteracting a decline in their Gardasil vaccine. As part of its strategy, Merck acquired Cidara Therapeutics and Verona Pharma to diversify its drug offerings as Keytruda faces its own patent expiry challenges.
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