Merck says 2027 will be “another year of investment,” prioritizing pipeline development and launches over near-term margin growth as it prepares for Keytruda’s eventual loss of exclusivity.
CFO Caroline Litchfield expects underlying operating expenses to rise at a mid- to high-single-digit rate in 2027. Merck says it expects moderate top-line growth, with newer products and animal health helping offset pressure from older drugs facing generic competition.
Recent clinical results are adding momentum:
sac-TMT showed positive Phase 3 results in advanced or recurrent endometrial cancer, and Merck reported positive Phase 3 results for its personalized cancer vaccine with Moderna in melanoma.
Merck plans to start Phase 3 development of investigational drug MK-2010, including combinations with sac-TMT for first-line non-small cell lung cancer, in the first half of 2027.
The company also says it will retain flexibility for science-driven business-development deals while investing in launches and its broader pipeline.
Sources:
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