Strategic Insight At the 44th Annual J.P. Morgan Healthcare Conference, Merck & Co. CEO Rob Davis unveiled an ambitious plan to secure the company’s financial future as its flagship therapy, Keytruda, nears patent expiration. The strategy focuses on shifting reliance to a diversified portfolio of next-generation growth drivers.
Key Facts and Objectives:
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Financial Vision: Merck projects a commercial opportunity exceeding $70 billion by the mid-2030s. This estimate is approximately double the consensus 2028 sales for Keytruda, highlighting the scale of the company’s diversification efforts.
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10 Pillar Programs: Roughly 70% of the $70 billion target is expected to be generated by 10 key assets. These include Winrevair (pulmonary arterial hypertension), Ohtuvayre (COPD), and novel candidates in oncology and antiviral research.
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M&A Momentum: The company recently finalized the acquisition of Cidara Therapeutics to bolster its respiratory portfolio. A standout asset is CD388, a potentially first-in-class, long-acting antiviral aimed at preventing symptomatic influenza in high-risk populations.
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Clinical Advancements: Merck currently has 80 Phase 3 trials underway. A significant milestone is the initiation of studies combining oral calderasib with subcutaneous Keytruda for patients with KRAS-mutant non-small cell lung cancer (NSCLC).
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De-risking Strategy: Leadership emphasized that the next two years will be critical for “de-risking” these commercial opportunities through clinical data readouts, ensuring the company’s transition into a new era of growth beyond its current blockbusters.
Source: https://www.pharmexec.com/view/jp-morgan-2026-merck-derisking-future-funding