Pharmaceutical giant Merck & Co. (MSD) has announced a major management reorganization by splitting its core pharmaceutical business into two distinct divisions. This strategic move is designed to prepare the company for 2028, when its “megablockbuster” Keytruda will lose patent exclusivity in the U.S.—a milestone expected to trigger a significant revenue decline.
Under the new structure, a dedicated Oncology unit will oversee the current portfolio and experimental cancer treatments, including Keytruda (which accounted for more than half of Merck’s total pharmaceutical sales in 2025). The second unit will focus on Specialty Pharma and Infectious Diseases, managing newer growth drivers like Winrevair, the vaccines portfolio, and diabetes treatments. This reorganization is accompanied by high-level leadership appointments, including the recruitment of a seasoned veteran from rival Sanofi.
Merck’s leadership remains optimistic about the post-Keytruda era, touting the “broadest pipeline in years.” Through recent acquisitions of biotechs such as Verona Pharma and Cidara Therapeutics, Merck aims to achieve over $70 billion in annual revenue by the middle of the next decade. The streamlined structure is expected to help the company sustain its oncology leadership while deepening its commercial footprint in cardiometabolic and infectious disease markets.