S&P 500 · pharma · Keytruda (immuno-oncology)
Merck & Co.
Merck & Co. (MSD outside the US) is a US pharma major behind Keytruda, the world's best-selling drug (distinct from Germany's Merck KGaA). Keytruda, at $31.68B in 2025 (+7%), dominates results, and its 2028 US patent cliff is the central risk. To counter it, Merck exclusively licenses Alteogen's ALT-B4 platform to convert Keytruda into a subcutaneous (SC) formulation and extend patent life. Vaccines (Gardasil) and animal health are supporting axes.
MRK Updated Jul 12, 2026 2 AI consumers
Per the valuechain.wiki graph, Merck & Co. is directly linked to 3 companies (3 supply, 0 revenue relationships) and reaches 3 companies within two hops; the links are backed by 4 dated sources, 2 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · 총매출 $650.1억 (2025, +1.3%)·키트루다 49%·순현금 M&A로 파이프라인 매입
- Customer concentration · 키트루다 49% 편중·2028 특허절벽. 알테오젠(SC)·다이이치(ADC)·모더나(암백신)·베로나 인수로 대응.
- Segments · Oncology (Keytruda) · Vaccines (Gardasil) · Animal health
Revenue from
- 종양내과 시장 (키트루다) High confidence· Amount $31.7B · 2025 키트루다 매출 · 10-K
Keytruda is the world's best-selling drug at $31.68B in 2025 (+7%); subcutaneous switch underway ahead of the 2028 US patent cliff.Mentions EN Wells Fargo·BofA (via Investing.com) Published Jan 15, 2026: Merck target raised — Wells Fargo OW $135, BofA Buy $132, consensus ~$118 - Vaccines, Animal Health & non-oncology (Gardasil, Animal Health, Winrevair, etc.) High confidence· Amount $6.4B · 2025 · Animal Health 2025 sales (non-oncology diversification)
The axis diversifying away from Keytruda concentration (49% of total) and a buffer to the 2028 patent cliff — Animal Health $6.35B (+8%), Gardasil $5.23B (down from $8.58B), Winrevair $1.44B, alliance revenue Lynparza $1.45B and Lenvima $1.05B. Vaccines and animal health have low correlation to the human-oncology cycle, lowering earnings volatility.
Pays to
- Alteogen High confidence· Amount $4.3B · 최대 총 계약금액(로열티 별도) · DART filings
Licenses Alteogen's ALT-B4 exclusively to convert Keytruda into subcutaneous pembrolizumab (Keytruda SC); pays Alteogen upfronts, milestones (US$25M FDA and US$15M EU in 2025) and a 2% net-sales royalty.Confirms EN BigGo Finance Published Jan 22, 2026: Alteogen Merck royalty rate confirmed at 2%; Hana Securities cuts target priceConfirms KO DART (FSS) Published Oct 1, 2025: Material disclosure: ALT-B4 milestone US$25M (Keytruda SC FDA approval) - Daiichi Sankyo (ADC co-development) High confidence
Co-develops three antibody-drug conjugates (ADCs) with Daiichi Sankyo aimed at the post-Keytruda era — patritumab deruxtecan (MK-1022), ifinatamab deruxtecan (MK-2400) and raludotatug deruxtecan (MK-5909). Merck funds upfronts/milestones and shares development and commercialization, a key upstream dependence for the pipeline meant to fill the 2028 cliff. - Moderna (V940 individualized cancer vaccine co-development) High confidence
Co-develops the individualized neoantigen cancer vaccine V940 (intismeran autogene, mRNA-4157) with Moderna — in Phase 3 as adjuvant therapy with Keytruda for melanoma and NSCLC. Merck exercised its option and shares development costs and economics, a pipeline bet attaching an mRNA platform to the defense of the Keytruda franchise.
Investments
- Verona Pharma acquisition (COPD, Ohtuvayre, 2025) High confidence· Amount $10.4B · 2025 · Verona Pharma acquisition cash consideration
In October 2025 Merck acquired respiratory biotech Verona Pharma for $10.4B in cash, gaining the COPD drug Ohtuvayre (ensifentrine) — the flagship 2025 M&A of its post-Keytruda diversification. Beyond this, Merck fills the cliff by buying pipeline via bolt-ons (EyeBio, Harpoon, Prometheus) and licenses (Daiichi, Moderna).
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Merck & Co. | node | +1.8 | +49.4 | +1 | -6.3 | +9.8 | +19.1 |
| Moderna | benef1 | +143.1 | -29.3 | -44.6 | -58.2 | -29.1 | +131.5 |
| Daiichi Sankyo | benef1 | -23.1 | +59.8 | +9.7 | -2.1 | -32.4 | -2.4 |
| ALTEOGEN | benef2 | -45.9 | -8.2 | +110.6 | +380.6 | +11.3 | -21.5 |
YTD as of 2026-07-10 · source: Yahoo Finance
Merck's thesis is the dominance of Keytruda, the world's largest drug, and the defensive fight around its 2028 patent cliff. Keytruda, at $31.68B in 2025 (+7%), is the world's top-selling medicine and the core of results, but its 2028 US patent expiry foreshadows biosimilar erosion. The centerpiece of the defense is converting it to a subcutaneous (SC) formulation via an exclusive license to Alteogen's ALT-B4, aiming to extend the franchise through dosing convenience and new patents — Merck pays Alteogen upfronts, milestones ($25M FDA and $15M EU in 2025) and a 2% net-sales royalty. Vaccines (Gardasil) and animal health diversify revenue. Re-rating triggers are the success and uptake of Keytruda SC, the pipeline ahead of the patent cliff, and new oncology and vaccine approvals.
Analysis generated from returns as of 2026-07-10