Merck (MRK) shares are soaring 5% in intraday trading on Friday, following the U.S. Food and Drug Administration's (FDA) approval of Pembrolizumab in combination with Enfortumab Vedotin-Ejfv for the treatment of muscle invasive bladder cancer. This approval marks a significant milestone for Merck's oncology portfolio and is expected to boost the company's revenue in the coming quarters.

The pharmaceutical giant's stock surge is contributing significantly to the Dow Jones Industrial Average's rally. Merck's shares have climbed $3.41, or 3.6%, making it one of the top performers in the blue-chip index. This performance comes amid a broader rally in the pharmaceutical sector, highlighted by Eli Lilly becoming the first drugmaker to reach a $1 trillion market valuation, driven by the booming demand for weight-loss drugs.

Analysts are optimistic about Merck's prospects, noting that the FDA approval strengthens its position in the competitive oncology market. The company's continued focus on innovative cancer treatments is likely to sustain investor interest and potentially drive further growth. As the pharmaceutical industry experiences a surge in valuations, Merck's latest breakthrough positions it well to capitalize on the sector's momentum.