Merck to create separate cancer business as Keytruda patent loss looms

[NEW JERSEY] Merck said on Monday (Feb 23) it would split its human-health business into two units. This creates a division for its cancer franchise led by blockbuster drug Keytruda, and groups its non-oncology medicines separately.

The split follows the drugmaker’s downbeat 2026 forecast issued in February, when it warned of lower-than-expected sales and profit as several legacy drugs neared their loss of exclusivity and faced the pressure of competition from cheaper generic versions.

The restructuring underscores the US drugmaker’s push to diversify beyond Keytruda, amid the drug’s looming loss of exclusivity later this decade.

Keytruda, approved for several forms of cancers, is the best-selling prescription medicine in the world. The treatment generated more than US$30 billion in 2025 and accounted for nearly half the company’s total revenue.

Merck shares were up 1.4 per cent in pre-market trading.

The company has tripled its pipeline since 2021 and struck two deals in the US$10 billion range in 2025, buying Cidara Therapeutics and Verona Pharma to broaden its portfolio.

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It also appointed Jannie Oosthuizen as executive vice-president and president of the cancer business.

He most recently served as senior vice-president and president of Merck Human Health US, where he led strategy and commercialisation for the company’s US portfolio.

The news of the split was first reported by the Wall Street Journal on Monday. REUTERS