Keytruda’s looming patent expiry raises concerns: 5 notes

Merck & Co.’s heavy reliance on its cancer drug Keytruda, which accounts for nearly half of the company’s revenue, is raising investor concerns as the drug’s patent expiration approaches in 2028, The Wall Street Journal reported Feb. 5. 

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By: Alexandra Murphy

Here are four more notes: 

  1. The company’s stock recently dropped 9% following a disappointing update on the vaccine business in China, further emphasizing the risks of overdependence on one blockbuster drug. 
  2. Keytruda, which generated $29.5 billion in sales in 2024, has driven much of Merck’s growth, but its upcoming patent cliff is casting a shadow over the company’s future. 
  3. Despite new drug acquisitions and a pipeline of promising assets, including in oncology and immunology, investors are worried about the sustainability of Keytruda’s sales post-patent. Merck’s attempts to diversify and mitigate this risk, including the development of a new under-the-skin version of the drug, have yet to fully reassure the market. 
  4. As the 2028 patent expiration looms, Merck is under increased pressure to demonstrate that its growth can continue without Keytruda’s dominance. 
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