The Economic Times·2026-02-24 18:31Core Insights - Merck is facing a critical period as it prepares for the patent expiration of its best-selling cancer drug Keytruda, which has accounted for nearly half of the company's total sales last year [1][8] - The company is diversifying its pipeline with promising new treatments, including a pneumonia vaccine Capvaxive and a novel lung disease treatment Winrevair [1] - Merck plans to create a new division for non-cancer drugs, which will include treatments for infectious diseases and diabetes, to better highlight its growing product lines [2][8] Financial Performance - Merck shares increased by approximately 1% at 11:08 am in New York, with the stock rising over 16% this year [3][8] - Analysts view the decision to split the pharmaceutical unit as a positive strategic move, making the growth story easier to analyze [3][8] Strategic Moves - The company is expected to face lower-cost competition as Keytruda's patents are set to expire in 2028, but it may extend exclusivity until 2033 through additional patents [5][9] - Merck has received US regulatory approval for a new formulation of Keytruda, called Keytruda Qlex, which is designed to be administered more easily [6][9] - The company is actively seeking acquisitions worth tens of billions of dollars to bolster its pipeline and offset the anticipated decline in Keytruda sales [7][9] Organizational Changes - Merck is splitting its main pharmaceutical unit into two, with one unit focusing on cancer drugs, including Keytruda, and the other on non-cancer medications [8] - Jannie Oosthuizen will lead the new cancer business, while Brian Foard will head the non-cancer medicines unit, both reporting to CEO Robert Davis [8][9] - The company is currently conducting around 80 late-stage trials to support its product pipeline [9]