Merck is strategically diversifying and expanding its pipeline ahead of the Keytruda patent expiry in 2028. The company is developing 20 new drugs with a total sales potential of $50 billion, aiming to reduce dependence on Keytruda. Key candidates include MK-1022 and MK-0616, both projected to exceed $5 billion in peak sales.
Pipeline and Recent Launches
Merck’s recently launched Winrevair generated $280 million in sales in Q1 2025 and is expected to reach peak sales of $3 billion. Capvaxive also performed well with $107 million in Q1 2025 sales, showcasing the efficacy of Merck’s acquisition strategy.
Financial Outlook
Currently trading at around $80, Merck’s stock is valued at 3.2 times its trailing revenues, below its historical average of 4.4 times. If it returns to this average, it could imply a price increase to over $110, representing nearly 40% upside potential.
