Merck CEO Rob Davis told CNBC on Tuesday that the drugmaker’s future no longer depends on blockbuster cancer therapy Keytruda alone.
“We’ve really transformed the company from really what was a Keytruda and a vaccines company to now a company with seven therapeutic areas,” Davis said on CNBC’s “Mad Money.” “We have over 20 new products that will be launching over the next five years, almost all with blockbuster potential, generating $70 billion of potential revenue as we get out to the mid-2030s. So, as we sit here today, we have a diverse portfolio, we have a sustainable business, and importantly, we have a franchise that I think is going to really stand the test of time.”
One of the biggest questions surrounding Merck has been how the company plans to offset the eventual loss of exclusivity for Keytruda, one of the world’s best-selling drugs in recent years. Davis said Merck has spent the past five years investing heavily in both internal research and acquisitions to build its next generation of medicines.
“If I think back to where we were five years ago, what I said to our chief scientist … was we have to find a way to invest in, augment, and accelerate the pipeline,” Davis said. “We’ve both done it through accelerating internal programs, but we’ve actually done $65 billion in business development and brought in several important assets.”
Davis highlighted Winrevair, a treatment for a rare, life-threatening lung disease that was approved by the Food and Drug Administration in 2024. Merck acquired the drug a few years earlier through its $11.5 billion acquisition of Acceleron. Davis said Winrevair is helping patients manage what has historically been a devastating disease.
The CEO also pointed to cholesterol-lowering pill Lipfendra, which was approved by the FDA last month, and the rollout of Keytruda QLEX, an injectable version of the company’s flagship cancer drug that can be administered in about a minute rather than through a 30-minute IV infusion.
Shares of Merck were roughly flat on Tuesday after beating second-quarter estimates and hiking its revenue outlook. However, the pharmaceutical giant cut its profit guidance due to accounting charges tied to its acquisition of biotech company Terns Pharmaceuticals.
Over the past 12 months, Merck shares are up about 60%, outperforming the iShares US Pharmaceuticals ETF, which has advanced about 50%.
