What Merck (MRK)'s Diabetes Price Cuts and Oncology Advances Mean For Shareholders
Merck has agreed to significantly reduce U.S. prices for diabetes drugs, including JANUVIA, JANUMET, and JANUMET XR, through a direct-to-patient program. Additionally, Merck reported positive Phase 3 results for KEYTRUDA plus Padcev in bladder cancer, enhancing its oncology portfolio. These moves aim to balance affordability pressures with investment in high-impact therapies. Merck's narrative projects $72 billion revenue and $24.3 billion earnings by 2028, requiring 4.2% yearly growth. The company faces risks from KEYTRUDA patent pressure and broader pricing impacts on margins.
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