What's Fueling The Rally In Merck Stock?

Core Insights - Merck's stock surged by 41% over the last six months, driven by modest revenue growth, significant profit increases, and heightened investor confidence [2][4]. Financial Performance - Revenue increased by 0.5%, while net margin rose by 8.6%, contributing to the stock's performance [4]. - The P/E multiple saw a significant increase of 27%, indicating improved investor sentiment [4]. Key Developments - Strong Q3 2025 earnings results included a 10% growth for Keytruda, exceeding expectations and prompting an increase in FY25 guidance [9]. - The FDA approved Keytruda QLEX (SC) for solid tumors, enhancing treatment convenience [9]. - Positive Phase 3 results for Enlicitide, an oral PCSK9 inhibitor, were announced, indicating potential for future growth [9]. - Merck raised its future revenue projections to $70 billion by the mid-2030s, reflecting optimism about new growth drivers [9]. - Encouraging long-term data for a personalized cancer vaccine with Keytruda in melanoma was reported, further supporting the growth narrative [9].