New York, January 12, 2026, 14:42 EST — Regular session.
Merck & Co shares slipped $1.26, or 1.1%, to $109.27 in Monday afternoon trading. The stock has fluctuated between $111.45 and $108.95 today.
Investors want clarity on Merck’s next steps beyond Keytruda and its legacy blockbusters. The upcoming J.P. Morgan Healthcare Conference promises to bring that question into sharp focus.
Biotech shares opened the week lower, with the SPDR S&P Biotech ETF slipping 2.1%, according to Barron’s. The report noted hopes for major deals, like a possible Merck bid for Revolution Medicines, but no announcements had emerged by late morning. (Barron’s)
Deal chatter, not just scientific progress, is shaping the scene. “That has prompted folks to revisit the playbook on what’s possible,” said Jeremy Meilman, JPMorgan’s global co-head of healthcare investment banking. Advisers are positioning 2026 as a year when big pharma might have more freedom to pursue acquisitions. (Reuters)
The Financial Times reported last week that Merck is negotiating to acquire cancer drug developer Revolution Medicines for between $28 billion and $32 billion, although Reuters said the deal is not finalized and could take weeks to complete. The acquisition would give Merck access to Revolution’s experimental daraxonrasib, which is in late-stage trials and benefits from an FDA fast-track review voucher—a valuable asset that can speed up the review process for another drug. Mizuho analysts have projected over $10 billion in risk-adjusted sales by 2035 from Revolution’s portfolio of RAS inhibitors. Meanwhile, AbbVie denied reports that it was in advanced talks to buy Revolution. (Reuters)
The broader market also showed volatility. Reuters noted Wall Street regained footing after early dips, as investors digested the Trump administration’s warning to indict Federal Reserve Chair Jerome Powell, sparking fresh concerns over central bank independence. (Reuters)
Merck’s pipeline isn’t solely dependent on acquisitions. On Monday, Moderna announced it expects mid-stage data by 2026 for a melanoma cancer vaccine it’s developing alongside Merck, aimed at post-surgery treatment. (Reuters)
Vaccine policy is now part of the equation. After U.S. health officials moved several vaccines out of the “universally recommended” category, Merck responded, saying, “Clear, evidence-based recommendations remain essential to support informed decisions and ensure that children and adolescents receive reliable protection against preventable diseases,” Reuters reported. Bernstein analysts put a potential $2 billion hit on Merck’s annual revenue due to the schedule change, which affects its RotaTeq and Gardasil vaccines. The move toward “shared clinical decision-making” means recommendations will now be personalized between doctor and patient, rather than broad endorsements. (Reuters)
Another risk in the deal buzz: overpaying for a pre-commercial asset can weigh on the stock, even if the science shows promise. Late-stage trials can still flop, and delays often creep in.
Merck announced it will release its fourth-quarter and full-year 2025 results on Feb. 3. Executives are set to update investors on sales and earnings during the call, the company said. (Merck)
Investors are set to tune in at 7:30 p.m. EST Monday, eager to catch any change in tone from CEO Robert M. Davis and research chief Dean Li during their fireside chat at the J.P. Morgan Healthcare Conference.
