NYSE:MRK

Merck Stock Edges Higher as Strong Product Growth Offsets Acquisition Charge

Merck (NYSE: MRK) shares rose 0.54% on Tuesday after the pharmaceutical company reported solid second-quarter revenue growth, raised its full-year sales outlook and highlighted multiple regulatory and clinical milestones, despite posting a quarterly loss due to a one-time acquisition-related charge.

Second-quarter worldwide sales increased 5% year over year to $16.6 billion, driven by continued strength in oncology, animal health and recently launched products. The company reported a GAAP loss per share of $0.54 and a non-GAAP loss per share of $0.13, both primarily reflecting a $2.31 per share charge related to the acquisition of Terns Pharmaceuticals.

Oncology and New Product Launches Drive Revenue Growth

Merck's flagship cancer franchise remained the company's largest growth engine.

KEYTRUDA and the newly launched KEYTRUDA QLEX generated combined sales of $8.4 billion, up 5% from a year earlier, with KEYTRUDA QLEX contributing $463 million during its initial launch period.

WINREVAIR continued its rapid commercial expansion, with sales jumping 75% year over year to $588 million, while Animal Health revenue increased 8% to $1.8 billion, providing additional support for overall growth.

Pipeline Momentum and Higher Guidance

Beyond commercial performance, Merck reported several important pipeline achievements during the quarter.

The FDA approved LIPFENDRA, the first once-daily oral PCSK9 inhibitor for lowering LDL cholesterol, while the company also announced positive clinical data for its oncology and HIV programs, including a Phase 3 study evaluating a once-weekly oral HIV treatment developed with Gilead.

Reflecting continued business momentum, Merck narrowed and raised its full-year 2026 revenue guidance to between $66.3 billion and $67.3 billion. The company now expects non-GAAP EPS of $2.66 to $2.76, including the financial impact of the Terns acquisition.

What to Watch

Despite the acquisition-related accounting charge, investors appeared encouraged by Merck's underlying operating performance, growing contribution from recently launched medicines and continued pipeline progress. Going forward, markets will monitor the commercial rollout of KEYTRUDA QLEX and LIPFENDRA, continued growth of WINREVAIR, and additional regulatory and clinical milestones expected across Merck's expanding pipeline.
Merck (MRK) Stock Slips Despite Scotiabank Raising Price Target

Merck (NYSE: MRK) shares traded modestly lower on Tuesday despite receiving a higher price target from Scotiabank, as investors remained cautious toward the pharmaceutical giant.

Scotiabank raised its price target to $155 from $136 while maintaining its Sector Outperform rating, signaling continued confidence in Merck's long-term growth prospects despite the stock's recent weakness.

# Scotiabank Sees Greater Upside

The higher price target reflects Scotiabank's positive outlook for Merck's diversified pharmaceutical portfolio and its ability to deliver long-term earnings growth.

The firm remains optimistic about Merck's pipeline, oncology franchise, and ongoing efforts to diversify revenue sources ahead of future patent expirations for key products.

# Long-Term Fundamentals Remain Intact

Merck continues to invest heavily in expanding its product portfolio through internal research and strategic acquisitions while advancing multiple late-stage pipeline candidates.

Analysts expect new product launches and pipeline development to play an increasingly important role in supporting future revenue growth as the company prepares for the eventual loss of exclusivity on some of its blockbuster therapies.

# Why MRK Stock Was Lower

Although Scotiabank raised its valuation target, the positive analyst action was not enough to offset broader selling pressure in the stock.

Investors appeared to remain focused on near-term industry challenges and long-term patent expiration concerns rather than the improved valuation.

Still, Scotiabank's decision to raise its price target while maintaining a Sector Outperform rating reinforces Wall Street's confidence in Merck's long-term earnings potential despite Tuesday's modest decline.
Merck & Co., Inc. reported fourth-quarter and full-year 2025 results showing resilient performance driven by oncology and animal health, while highlighting significant progress across its late-stage pipeline.

Fourth-quarter worldwide sales rose 5% to $16.4 billion, with GAAP EPS of $1.19 and non-GAAP EPS of $2.04. For full-year 2025, Merck generated $65.0 billion in worldwide sales, up 1% year over year, supported by 7% growth in KEYTRUDA/KEYTRUDA QLEX sales to $31.7 billion, $1.4 billion in WINREVAIR sales, and strong Animal Health growth of 8%. These gains were partly offset by a sharp decline in GARDASIL/GARDASIL 9 sales.

During 2025, Merck reported positive results from 18 Phase 3 trials, expanded its pipeline through acquisitions and licensing deals, and received FDA National Priority Vouchers for key late-stage assets. Looking ahead, the company expects 2026 worldwide sales of $65.5–$67.0 billion and non-GAAP EPS of $5.00–$5.15, reflecting a one-time charge related to the Cidara Therapeutics acquisition.

Source: Merck & Co., Inc. press release
Merck Launches ChemiSphere App to Streamline Laboratory Data Access

Merck KGaA has launched the ChemiSphere app, a digital tool that allows scientists to instantly access product documentation and quality data by scanning 2D barcodes on lab products. Built on Merck’s M-Trust platform, the app aims to reduce manual data entry, improve data integrity, and boost efficiency in laboratory workflows.
Merck Reports Solid Q3 Results and Raises 2025 Outlook on Strong Oncology and New Product Performance

Merck & Co. (NYSE: MRK) posted third-quarter 2025 revenue of $17.3 billion, up 4% year over year, driven by continued strength in oncology and animal health. KEYTRUDA sales rose 10% to $8.1 billion, WINREVAIR surged 141% to $360 million, and CAPVAXIVE contributed $244 million in its launch quarter. GAAP EPS climbed 87% to $2.32, while non-GAAP EPS increased 64% to $2.58. The company raised its full-year sales outlook to $64.5–$65.0 billion and narrowed non-GAAP EPS guidance to $8.93–$8.98.

Merck highlighted major milestones, including FDA approval of subcutaneous KEYTRUDA QLEX, positive Phase 3 results for Enlicitide Decanoate in hypercholesterolemia, and the completion of its acquisition of Verona Pharma, strengthening its respiratory portfolio.
Merck Selects Veeva Vault CRM to Support Major Launch Period

Veeva Systems (NYSE: VEEV) announced on July 21, 2025, that Merck (NYSE: MRK) has committed to adopting Veeva Vault CRM as its commercial execution platform. This move supports Merck’s entry into one of the most significant launch phases in its history, spanning multiple therapeutic areas and treatment modalities.

The partnership expands Merck’s longstanding relationship with Veeva, aiming to boost global commercial capabilities through Vault CRM’s personal and digital engagement tools and compliance-tailored features. Merck’s EVP and CIO Dave Williams highlighted the role of Vault CRM in enhancing customer success and execution.

Vault CRM is part of the broader Vault CRM Suite, designed for the life sciences industry’s complex regional and compliance needs.

Is Merck & Co., Inc. (MRK) the Most Reliable Dividend Stock to Buy According to Hedge Funds?

We recently compiled a list of the 12 Most Reliable Dividend Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Merck & Co., Inc. (NYSE:MRK) stands against the other dividend stocks. The year 2024 proved favorable for dividends, even though the Dividend Aristocrats Index lagged behind […]

(finance.yahoo.com)
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08-04-26European Investor