Feb 23 - Merck said on Monday it will reorganize its human-health business into two distinct divisions, placing its leading cancer franchise - centered on Keytruda - apart from its non-oncology medicines. The restructuring is aimed at positioning the company as it prepares for the impending loss of exclusivity on Keytruda, the drugmaker's top-selling oncology treatment.
The company highlighted the centrality of Keytruda to its recent revenue stream: the medicine accounted for nearly half of Merck's total revenue in 2025 and recorded sales exceeding $30 billion that year. Keytruda, which is approved for multiple forms of cancer, is currently the best-selling prescription medicine globally.
Merck said the split will separate the oncology business led by Keytruda from other human-health products, creating clearer organizational focus on its cancer franchise. Shares of the U.S. drugmaker rose in premarket trading, advancing 1.4% on the news.
In addition to the corporate reorganization, Merck has been working to broaden its development pipeline. The company has tripled its pipeline since 2021 and has been diversifying into multiple therapeutic areas to strengthen its overall portfolio.
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While Merck did not provide additional operational details in this announcement, the decision to separate the oncology franchise reflects a response to the concentration of revenue in Keytruda and the need to prepare the broader business for competitive and patent-related shifts ahead.