1. MRK's average revenue growth is nearly 10%, outpacing J&J's 4%. 2. Keytruda accounts for 50% of MRK's revenue; its exclusivity ends in 2028. 3. Projected sales for Keytruda may drop from $36 billion to under $20 billion. 4. Investors may face risks in MRK due to biosimilar competition after 2028. 5. Comparisons with J&J highlight investment risk-reward decisions.
Merck's heavy reliance on Keytruda poses a significant valuation risk as it faces future competition. Historical precedents show major sales declines following patent expirations for similar drugs.
The article discusses significant strategic challenges MRK faces which could materially impact its financial outlook, emphasizing the importance for investors.
Keytruda's loss of exclusivity in 2028 will lead to long-term revenue decline, impacting MRK's valuation significantly over time.