Merck Banks on Growing Pipeline to Offset Keytruda Loss of Exclusivity

Merck & Co., Inc. (MRK) is relying on its growing pipeline and expanding portfolio of newer medicines to offset the eventual impact of the loss of exclusivity for its blockbuster cancer drug Keytruda.

The company's phase III pipeline has almost tripled since 2021, supported by in-house progress as well as the addition of candidates through ongoing mergers and acquisitions (M&A) deals. Merck expects to launch 20 new drugs by 2030, with many already launched and carrying blockbuster potential.

Some newer products are already emerging as key growth drivers for Merck, including pulmonary arterial hypertension drug Winrevair, the 21-valent pneumococcal conjugate vaccine Capvaxive, and cancer drug Welireg. These drugs generated $1.1 billion, $325 million, and $470 million in first-half 2026 sales, respectively.

Keytruda remains Merck's biggest revenue driver, with $16.40 billion in sales for the first half of 2026, up nearly 4.2% year over year. However, its sales are expected to decline sharply once biosimilars enter the market around 2028-2029.