Merck has announced a significant restructuring of its human health operations, creating a new unit dedicated to its cancer treatments, specifically focusing on Keytruda. This move aims to bolster the company’s efforts to diversify its portfolio as Keytruda’s patent protections are set to diminish in the coming years.
Merck’s New Cancer Unit: Strategic Decision
The decision to split the human health business into two distinct units reflects Merck’s proactive approach to counteract the expected revenue decline from Keytruda. The cancer franchise remains a core focus, given that Keytruda alone generated over $30 billion in sales in 2025, representing nearly half of Merck’s total revenue.
Keytruda: A Blockbuster Drug
- Keytruda is recognized as the best-selling prescription medication globally.
- The drug is approved for multiple forms of cancer.
Merck has been actively expanding its pipeline since 2021, tripling its development efforts and making strategic acquisitions to enhance its therapeutic offerings. In the past year alone, the company has completed two major acquisitions valued around $10 billion, acquiring Cidara Therapeutics and Verona Pharma.
Leadership Change in Cancer Division
Alongside the restructuring, Merck appointed Jannie Oosthuizen as the executive vice president and president of the new cancer business unit. Ostenhuzien previously served as the senior vice president for Merck Human Health U.S. and was instrumental in developing the company’s U.S. strategy.
Market Response and Future Outlook
The announcement has led to a 1.4% increase in Merck’s shares during premarket trading. However, analysts note that the company recently issued a pessimistic forecast for 2026, which anticipates lower-than-expected sales and profits due to the approaching loss of exclusivity for several legacy drugs and increased generic competition.
Overall, Merck’s establishment of a dedicated cancer unit illustrates its commitment to navigating the challenges posed by Keytruda’s changing market dynamics while positioning itself to explore new growth opportunities in the oncology sector.
