Merck’s leading drug, Keytruda, experienced a significant sales increase of 72%, rising from $17 billion in 2021 to $29 billion in 2022, now accounting for 46% of the company’s total revenue. However, Keytruda’s U.S. market exclusivity is set to expire in 2028, leading to anticipated sales declines, with estimates suggesting revenues could fall to between $15 billion and $20 billion within four to five years after the introduction of biosimilars.
The company has faced stock price challenges, with MRK stock declining 40% over the past year, attributed to concerns over Keytruda’s declining market position and decreased demand for its second-largest drug, Gardasil. Merck now has a critical three-year window to mitigate potential revenue losses and manage slowing growth.
