New York, Jan 26, 2026, 15:28 (EST) — Regular session
- Merck shares slipped roughly 0.6% after reports indicated that talks to acquire Revolution Medicines have lost momentum
- The reported deal stood out as a rare mega-buyout on big pharma’s M&A radar
- Next up: Merck’s Feb. 3 earnings call, where investors will be watching for updates on potential deals and the 2026 outlook
Merck & Co shares slipped 0.6% to $107.57 in Monday afternoon trading after reports surfaced that the U.S. drugmaker ended talks to acquire cancer-drug developer Revolution Medicines. According to Reuters, which followed an initial report by the Wall Street Journal, negotiations stalled over price disagreements. The potential deal, valued between $28 billion and $32 billion, would have granted Merck access to Revolution’s late-stage drug daraxonrasib, carrying an FDA fast-track review voucher to speed up future approvals. Neither company has issued a comment. (Reuters)
The timing matters because investors are zeroing in on how Merck plans to sustain growth as Keytruda, its top-selling cancer drug, nears loss of exclusivity. Merck CEO Rob Davis told a recent conference, “We are not limited from a balance sheet,” but said the company is targeting deals up to $15 billion, according to a report from Investing.com. That same report notes Merck is gearing up for Keytruda’s upcoming exclusivity expiry. (Investing.com UK)
Analysts pointed to the stop-and-start nature of the deal as a stark reminder of how tough it is to secure big oncology targets at prices buyers find acceptable. Truist Securities noted in a report cited by BioSpace that “a potential transaction in the $30 billion range” would serve as “a nice validation” of Revolution’s worth. When asked about buyout rumors at the J.P. Morgan Healthcare Conference, Revolution CEO Mark Goldsmith said, “it’s not our goal to build something big.” (BioSpace)
Merck shareholders are left wondering if stepping back signals discipline or simply a lack of urgency. Another key issue: will the company shift its focus to smaller acquisitions, or hold off until clinical data clarifies valuations?
Revolution’s shares plunged roughly 17% to $97.63, erasing some of the takeover premium gained earlier this month.
The broader tape showed strength. The S&P 500 ETF climbed around 0.6%, while the health care sector ETF added about 0.5%. Merck lagged behind, though, slipping on the day.
Investors are eyeing a near-term milestone: Merck’s fourth-quarter 2025 earnings call is set for Feb. 3 at 9:00 a.m. ET. Management will likely field questions about 2026 projections and potential business development moves. (Merck)
The path ahead isn’t straightforward. If Merck holds back and oncology assets continue to climb, shareholders might fret the company will end up overpaying or falling short on targets. On the flip side, paying a premium risks backlash over returns, integration challenges, and regulatory hurdles.
Traders are watching the rumor mill closely, while also waiting for Feb. 3. That’s when Merck is expected to clarify its stance on pipeline priorities and M&A discipline, which could dictate what happens next.
