Merck creates separate oncology arm ahead of Keytruda patent loss

Core Insights - Merck is restructuring its human-health operations into two divisions: oncology and specialty, to better prepare for the impending patent loss of Keytruda in 2028, which currently accounts for nearly half of the company's sales [1][1][1] Group 1: Business Reorganization - The oncology division will focus on Keytruda and other cancer therapies, while the specialty division will manage non-cancer products, including established drugs like Gardasil and Januvia, as well as newer therapies like Winrevair [1][1] - Leadership changes include Brian Foard as president of the specialty division and Jannie Oosthuizen as head of the oncology division, both reporting to CEO Robert Davis [1][1][1] Group 2: Strategic Focus and Growth - Merck aims to launch over 20 new drugs or expanded uses for existing products in the coming years, including a new cholesterol pill expected to contribute significantly to revenue [1][1] - The company has estimated that its current pipeline could generate over $70 billion in potential commercial opportunities by the mid-2030s, more than double previous peak sales estimates for Keytruda [1][1][1] Group 3: Financial Performance and Market Position - Merck reported better-than-expected fourth-quarter 2025 results, surpassing analysts' forecasts for both revenue and earnings, which has bolstered investor confidence despite the challenges posed by Keytruda's patent expiration [1][1] - The company's phase III pipeline has nearly tripled since 2021, supported by internal research and acquisitions, including the notable purchase of Verona, which introduced a new therapy for chronic obstructive pulmonary disease [1][1][1]