Barclays Highlights Merck's (MRK) Pipeline Catalysts in Coverage Initiation

Merck & Co., Inc. (NYSE:MRK) is included among the 14 Best Low Volatility Dividend Stocks to Invest in.

On February 20, Barclays started coverage of Merck & Co., Inc. (NYSE:MRK) with an Overweight rating. It set a $140 price target on the stock. The firm said the company’s 2026 will bring “first-in-class” launches and important data readouts that could shape its next phase of growth. The analyst added that Merck shares offer potential for both earnings upside and multiple expansion, pointing to improving confidence in its future earnings power.

Merck is also preparing for a structural change as it looks ahead to the eventual loss of exclusivity on its biggest drug. According to the Wall Street Journal, the company plans to split its main pharmaceutical business into two separate units. One will focus on cancer treatments, including Keytruda, its blockbuster immunotherapy. The other will handle non-cancer products, such as the HPV vaccine Gardasil. This shift reflects how central Keytruda has become to Merck’s business. The drug accounts for nearly half of the company’s total revenue. But that strength also brings risk. Keytruda is expected to lose patent protection in the US in 2028, which could open the door to cheaper competing versions and weigh on future sales.

Merck is trying to get ahead of that challenge. The company is counting on its non-cancer portfolio to help drive growth and soften the impact once Keytruda faces competition. At the same time, it has been actively acquiring biotechnology companies to strengthen its pipeline. One example is Winrevair, a newer treatment aimed at lung disease.

The company is also working to build its next wave of products. More than 20 new drug launches, or new uses for existing treatments, are planned in the coming years, the Journal reported. These efforts are meant to create new revenue streams and reduce reliance on any single blockbuster drug.

Merck & Co., Inc. (NYSE:MRK) is a global healthcare company focused on developing and delivering health solutions. Its portfolio includes prescription medicines, biologic therapies, vaccines, and animal health products, serving patients and healthcare providers around the world.

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