Merck & Co. is restructuring its pharmaceuticals division to accelerate product launches before its blockbuster cancer drug Keytruda loses patent protection in 2028. The move aims to streamline operations, boost innovation, and prepare for revenue challenges as biosimilars enter the market, according to a report by The Wall Street Journal.
Merck & Co., one of the world’s leading pharmaceutical companies, has announced plans to split its pharmaceuticals unit in a strategic effort to strengthen its pipeline and accelerate product launches. The restructuring comes as the company prepares for the patent expiry of Keytruda, its best-selling cancer immunotherapy, which generated over $25 billion in sales in 2024.
The decision reflects Merck’s proactive approach to mitigating the impact of biosimilar competition and ensuring long-term growth. By reorganizing its pharmaceuticals division, Merck aims to enhance focus on innovation, streamline product development, and bring new therapies to market more efficiently.
Key Highlights
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Strategic Restructuring: Merck to split its pharmaceuticals unit.
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Patent Cliff: Keytruda, Merck’s blockbuster cancer drug, faces patent expiry in 2028.
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Revenue Impact: Keytruda generated $25+ billion in 2024, making its patent loss critical.
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Growth Strategy: Focus on accelerating product launches and strengthening pipeline.
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Industry Outlook: Move positions Merck to compete effectively in oncology and beyond.
This restructuring underscores Merck’s determination to sustain leadership in oncology and pharmaceuticals while preparing for one of the industry’s most significant patent expirations.
Sources: The Wall Street Journal; LinkedIn – Keytruda Patent Expiry Analysis