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Ticking Keytruda Clock Moves Citi's Merck Bull to Sideline -- Market Talk

Dow Jones
May 14, 2025

0848 ET - Citi downgrades Merck to neutral from buy amid concerns about the drugmaker's plans to address the 2028 loss of patent exclusivity for its blockbuster cancer drug Keytruda. In a note, Citi says that while headwinds from the exclusivity loss are well-appreciated, offsets from Merck's pipeline progression and new launches are taking time, and that Merck seems to have less urgency toward big M&A to offset looming Keytruda declines. Citi says a commercial-stage deal topping $10 billion could provide some relief to Merck shares, but the analysts say they think resolution of policy uncertainties around tariffs and most-favored-nation pricing are a higher priority for Merck. Citi cuts its Merck target price to $84 from $115. (colin.kellaher@wsj.com)

(END) Dow Jones Newswires

May 14, 2025 08:48 ET (12:48 GMT)

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