1. Merck acquires Verona Pharma to address Keytruda patent cliff challenges. 2. Ohtuvayre, Verona's drug, has peak sales potential of $4 billion. 3. Expected decline in Keytruda’s sales may reach $15-20 billion. 4. Merck's current growth strategy may not sufficiently cover revenue gaps. 5. Stock under pressure, trading below historical earnings ratio.
Despite venturing into new markets, Merck remains heavily reliant on Keytruda. Historical examples show similar challenges led to stock downturns when key products faced competition.
The article highlights Merck's critical need for growth outside Keytruda. The importance score reflects the urgency and potential stock impacts stemming from strategic decisions.
Long-term viability depends on successful execution of growth strategies post-2028. Comparable companies have faced prolonged impacts from patent losses.