New York, Jan 12, 2026, 21:31 EST — The market has closed.
Merck & Co boosted its long-term revenue forecast for several new products and pipeline candidates, projecting $70 billion from these “new growth drivers” by the mid-2030s. The company raised its cardiometabolic and respiratory sales outlook to around $20 billion, up from $15 billion, while its infectious-disease forecast jumped to about $15 billion from $5 billion. Merck shares slipped 1.2% to close at $109.19 on Monday. Meanwhile, Johnson & Johnson climbed 2.6%, Eli Lilly added 1.6%, and Pfizer dropped 0.8%. (Reuters)
Why it matters now: investors are wrestling with how to value Merck as Keytruda, its top cancer drug, faces mounting generic threats. In slides from its J.P. Morgan Healthcare Conference presentation, Merck pegged the “commercial opportunity” from new growth drivers at over $70 billion. The company flagged this as “non-risk adjusted,” meaning it doesn’t account for trial failures or regulatory delays. Merck also highlighted plans for more than 20 new launches and noted about 80 Phase 3 studies ongoing—the late-stage trials crucial for drug approval. (Q4 Capital)
Merck is also downplaying the size of the gap it faces. It referred to the issue as “LOE” — loss of exclusivity, which happens when patents expire and competitors launch similar products — and claimed its pipeline, described as more “clinically derisked,” should nearly make up for Keytruda’s looming LOE by 2026.
Though the target stretches far ahead, the focus is on the near term. Traders eye Tuesday for the first concrete sign: does this shift the bear case, or simply delay it until “show me” milestones and quarterly results come into play.
Merck’s revised opportunity forecast leans strongly toward oncology, projecting over $25 billion in mid-2030s potential within that area. Cardiometabolic and respiratory fields follow, each estimated near $20 billion, with infectious disease trailing at about $15 billion. Several of the highlighted programs compete in packed sectors — cancer antibody-drug conjugates, HIV treatments, immunology — where rapid progress and clear data are crucial.
The company also outlined a “data-rich” stretch through 2027, highlighting several studies set to reach primary completion in 2026 — the moment when a trial wraps up gathering its key data — often a signpost for when results could begin emerging.
Still, that $70 billion estimate rests on a heap of assumptions. Drug development is unpredictable, regulators often demand extra data, and payers can clamp down on prices—especially when several major companies compete in the same spaces. Just a couple of clinical setbacks could force investors to scramble and rethink their mid-2030s projections fast.
Investors will be watching this week to see how fast analysts incorporate the new long-term targets into their shorter-term sales projections. They’ll also be tracking whether Merck’s updated goals begin to influence conversations around patent cliffs and potential deals within the sector.
Merck’s next major test arrives on Feb. 3 with its quarterly earnings report. Investors will zero in on 2026 guidance, progress on the launch schedule, and any clearer plans to offset Keytruda’s slowing growth amid rising competition.
