Merck faces a sharp Gardasil slowdown as weak demand in China and Japan affects sales of the vaccine.
President Donald Trump has unveiled an agreement with Germany's Merck KGaA to lower the cost of its fertility medicines in the United States in exchange for exemptions from threatened tariffs, part of his drive to make in vitro fertilisation (IVF) more affordable. Under the deal, Merck will sell its full range of IVF drugs through Trump's direct-to-consumer platform, TrumpRX, and expand manufacturing in the US.
Merck & Co., Inc. remains the largest U.S. pharma company in 2025, driven by oncology and Keytruda, despite looming patent expiration risks. Keytruda accounts for over half of MRK's pharmaceutical revenue, making its 2028 patent loss a significant challenge for future growth. MRK management is actively working to offset the Keytruda revenue gap, laying a foundation for post-2028 recovery.
Keytruda continues to dominate, driving 50% of revenue, with new approvals and delivery methods strengthening MRK's oncology leadership. The company's long-term outlook is also promising, with a full pipeline of new final-stage drugs, an expanding vaccine portfolio, and breakthroughs in animal health products. Despite patent and regulatory risks, MRK's low valuation, strong balance sheet, and 3.8% dividend yield make it appealing for long-term investors.
In the closing of the recent trading day, Merck (MRK) stood at $84.81, denoting a -1.04% move from the preceding trading day.
Merck (MRK) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
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MRK's Keytruda remains its dominant growth engine and is expected to have boosted its top line in the third quarter.
Merck (MRK) stock merits your attention. Why? Because it offers monopoly-like high margins at a discounted price.
Merck (MRK) closed the most recent trading day at $87.61, moving 1.34% from the previous trading session.
MRK's stock witnesses an upside after Pfizer's pricing deal, but Gardasil's slump and Keytruda's looming LOE keep investors cautious.
Merck (MRK) is attractively valued, boasting strong free cash flow, robust margins, and a leading position in oncology with Keytruda. MRK faces a looming patent cliff for Keytruda in 2028, but a strong late-stage pipeline and R&D investments offer long-term growth potential. Recent political developments reduce regulatory risks, and the company's diversified operations and pipeline help buffer near-term uncertainties.