Merck Cancer Pipeline Seen as Key to Weathering Keytruda Patent Expiration

Morgan Stanley analysts believe Merck is a buy due to its strong pipeline of cancer drugs that can offset the impending patent expiration of Keytruda. The analysts' assessment comes as Keytruda, one of Merck's top-selling products, faces patent expiration in the United States next year.

The patent expiration for Keytruda will allow other companies to manufacture generic versions of the drug, potentially threatening its sales. However, Morgan Stanley analysts are optimistic about Merck's pipeline, which includes several promising cancer treatments that can help maintain revenue growth.

Morgan Stanley did not provide a specific price target or timeline for when these new treatments might become available. The analysts' recommendation is based on their assessment of the company's overall financial health and long-term prospects.