Track market-moving stories before they get noisy

MRK trades near its 52-week high as Keytruda drives growth, while its pipeline and new products offer a path beyond the 2028 patent cliff.

Merck (MRK - Free Report) closed the most recent trading day at $150.32, moving -1.33% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.38% for the day. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.29%.

Heading into today, shares of the pharmaceutical company had gained 18.67% over the past month, outpacing the Medical sector's gain of 6.34% and the S&P 500's gain of 2.08%.

The upcoming earnings release of Merck will be of great interest to investors. On that day, Merck is projected to report earnings of $2.27 per share, which would represent a year-over-year decline of 12.02%. In the meantime, our current consensus estimate forecasts the revenue to be $17.61 billion, indicating a 1.94% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.97 per share and a revenue of $67.25 billion, signifying shifts of -66.93% and +3.45%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Merck. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.33% lower. As of now, Merck holds a Zacks Rank of #3 (Hold).

In terms of valuation, Merck is presently being traded at a Forward P/E ratio of 51.22. For comparison, its industry has an average Forward P/E of 18.02, which means Merck is trading at a premium to the group.

We can additionally observe that MRK currently boasts a PEG ratio of 6.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.3 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

A month has gone by since the last earnings report for Merck (MRK - Free Report) . Shares have added about 18.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Merck due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Merck & Co., Inc. before we dive into how investors and analysts have reacted as of late.

Q2 Earnings & Sales Beat EstimatesMerck reported an adjusted loss of 13 cents per share for the second quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 26 cents. In the year-ago quarter, the company reported adjusted earnings of $2.13 per share.

Including acquisition and divestiture-related costs, restructuring costs, income and losses from investments in equity securities and certain other items, loss was 54 cents per share in the second quarter versus earnings of $1.76 per share in the year-ago quarter.

Adjusted as well as reported earnings included a charge of $2.31 per share recorded in the quarter related to the acquisition of Terns Pharmaceuticals, which was completed during the period.

Revenues in the second quarter increased 5% year over year on a reported basis and 4% excluding foreign exchange (Fx) to $16.61 billion. Sales beat the Zacks Consensus Estimate of $16.33 billion. Higher sales of oncology drugs, including Keytruda and contributions from new products like Winrevair, Welireg and Capvaxive, and the Animal Health segment were partially offset by lower sales of Gardasil and some other vaccines.

Quarter in DetailThe Pharmaceutical segment generated revenues of $14.76 billion, up 5% year over year (4% excluding FX). Pharmaceutical segment revenues beat the Zacks Consensus Estimate of $14.28 billion.

All sales growth numbers discussed below exclude FX impact.

Oncology DrugsCombined sales of Keytruda and Keytruda Qlex increased 4% to $8.37 billion. The reported figure topped the Zacks Consensus Estimate of $8.06 billion.

Sales of Keytruda benefited from rapid uptake across earlier-stage indications and continued strong momentum in metastatic indications.

Keytruda sales in the second quarter included $463 million in sales of Keytruda Qlex, the subcutaneous formulation of Keytruda, compared to $128 million in the previous quarter as patient adoption has increased since the permanent J-code was established in April.

Merck is seeing an increase in usage of Keytruda in tumors that primarily affect women, including cervical and breast cancers, as well as Keytruda in combination with Padcev in first-line, locally advanced or metastatic urothelial cancer.

Merck said on the conference call that Keytruda’s U.S. growth will moderate as penetration peaks in several indications. The comparison will also be impacted by a $250 million wholesaler purchase benefit in the third quarter of 2025.

On the conference call, Merck’s CEO Robert Davis said that the Keytruda exclusivity transition will create a shallow decline followed by a fast return to growth.

Alliance revenues from Lynparza declined 2% to $365 million in the quarter. Lenvima alliance revenues increased 6% to $283 million, driven by higher U.S. demand, partly offset by lower net pricing.

Welireg sales surged 67% to $271 million, reflecting higher demand in the United States for certain previously treated advanced renal cell carcinoma patients and continued launch uptake across international markets, particularly Japan. Favorable wholesaler purchasing patterns in the United States also aided performance.

VaccinesIn vaccines, sales of HPV vaccines — Gardasil and Gardasil 9 — rose 3% to $1.17 billion. Higher demand in the Asia Pacific and Europe, along with favorable tender timing in Europe, supported the franchise. These gains were partly offset by lower demand and unfavorable timing of CDC purchases in the United States. Gardasil/Gardasil 9 sales missed the Zacks Consensus Estimate of $1.18 billion.

Combined sales of ProQuad, M-M-R II and Varivax declined 3% to $592 million, mainly due to lower demand in the United States.

Sales of the pneumococcal 15-valent conjugate vaccine Vaxneuvance declined 36% to $148 million due to lower demand in the United States and most international markets as well as unfavorable comparison to the prior year quarter, as public-sector activity in the United States increased sales in that period.

Capvaxive sales increased 40% to $184 million, driven by increased demand in the United States and continued launch uptake in some international markets.

Sales of the new RSV vaccine, Enflonsia, in the United States were $2 million in the second quarter of 2026 compared with $1 million in the first quarter.

Other DrugsIn the infectious disease portfolio, Bridion sales rose 8% to $497 million due to higher demand and pricing in the United States, partially offset by lower demand in most international markets due to generic competition. Bridion lost patent exclusivity in the United States in July 2026. However, Merck expects that U.S. sales will decline at a slower pace than previously expected due to lower-than-anticipated generic competition.

Prevymis sales increased 28% to $295 million, driven by higher demand in the United States and certain European markets.

Januvia/Janumet franchise sales fell 31% year over year to $429 million. Sales of the drug declined due to lower demand and net pricing in the United States due to competition, as well as lower demand in China and most other international markets amid ongoing generic competition.

Winrevair sales jumped 75% to $588 million, reflecting continued strong demand in the United States and early launch momentum across international markets, particularly Japan and Europe.

Ohtuvayre, added from the October 2025 acquisition of Verona Pharma, contributed $204 million in sales in the second quarter compared with $131 million in the previous quarter. Revenues in the second quarter benefitted from continued prescription demand as well as favorable timing of specialty pharmacy purchases. However, third-quarter revenues will be hurt by the unwinding of specialty pharmacy purchases. Merck is investing in salesforce expansion and patient support to drive accelerated growth in 2027.

Regarding its newly launched HIV pill, Idvynso, Merck said it is seeing encouraging early progress on access and reimbursement.

Merck’s Animal Health segment generated revenues of $1.78 billion, up 8% year over year on a reported basis and 5% excluding FX. This growth was driven by higher demand for livestock as well as companion animal products. Sales from this segment marginally beat the Zacks Consensus Estimate of $1.77 billion.

Sales of livestock products rose 6% to $1.04 billion, driven by higher demand for ruminant and poultry products. Sales of companion animal products rose 5% to $734 million, driven by new product launches.

Margin DiscussionAdjusted gross margin was 81.1%, down 110 basis points year over year due to higher inventory write-offs.

Adjusted selling, general and administrative expenses rose 10% to $2.89 billion, reflecting higher administrative and promotional spending.

Adjusted research and development expenses increased almost 144% to $9.74 billion in the quarter due to a significantly higher charge of $5.7 billion related to the Terns acquisition compared to a $200 million business development charge a year ago.

Excluding these business development charges, operating expenses grew 7% in the quarter.

2026 Sales Guidance Upped, EPS Range LoweredMerck raised its sales guidance for 2026 while lowering its adjusted EPS range to include acquisition costs.

The company now expects revenues to be in the range of $66.3-$67.3 billion, compared with the previous expectation of $65.8-$67.0 billion. The new range indicates year-over-year growth of 2% to 4%.

The company now expects adjusted earnings of $2.66-$2.76 per share, down from its previous guidance of $5.04-$5.16. The revised range includes a one-time charge of $2.43 per share related to the Terns acquisition.

The 2026 guidance represents a significant decline from adjusted EPS of $8.98 in 2025 due to higher charges related to business development transactions. In 2025, Merck recorded a one-time charge of 20 cents per share related to business development transactions.

The guidance includes a positive impact from Fx of approximately 1% on sales and around 15 cents on EPS.

The adjusted gross margin is expected to be around 81%, lower than the prior expectation of approximately 82% due to higher inventory reserves.

Adjusted operating expenses are now expected to be in the range of $42.0-$42.7 billion compared with the earlier projection of $36.0 billion to $36.8 billion. The adjusted tax rate guidance was raised to 35-36% compared with the previous guidance of 23.5-24.5%.

In 2026, Merck expects to buy back shares worth $3 billion.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.

VGM ScoresCurrently, Merck has a average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Merck has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerMerck is part of the Zacks Large Cap Pharmaceuticals industry. Over the past month, Novartis (NVS - Free Report) , a stock from the same industry, has gained 5.2%. The company reported its results for the quarter ended June 2026 more than a month ago.

Novartis reported revenues of $14.41 billion in the last reported quarter, representing a year-over-year change of +2.5%. EPS of $2.41 for the same period compares with $2.42 a year ago.

For the current quarter, Novartis is expected to post earnings of $2.24 per share, indicating a change of -0.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Novartis. Also, the stock has a VGM Score of D.

RAHWAY, N.J.--(BUSINESS WIRE)--Merck to Participate in the Wells Fargo 21st Annual Healthcare Conference.

The biotech sector has a new catalyst beyond GLP-1 drugs. Moderna Inc (NASDAQ:MRNA) and Merck & Co Inc’s (NYSE:MRK) positive Phase 3 results for a personalized mRNA cancer vaccine could revive investor interest in genomics, immunotherapy and precision medicine ETFs.

Their intismeran autogene therapy, given with Merck’s Keytruda, significantly improved recurrence-free and distant metastasis-free survival in patients with resected stage IIB-IV melanoma. It is the first mRNA-based cancer therapy to post a positive Phase 3 result.

• Moderna stock is surging to new heights today. Why is MRNA stock surging?

Precision Medicine Moves Into FocusThe more interesting ETF opportunity here may be broader than mRNA.

Personalized cancer vaccines rely on sequencing a patient’s tumor, identifying mutations that could trigger an immune response and designing a treatment specifically for that patient. Moderna uses AI tools to help identify promising neoantigens, linking the cancer-vaccine opportunity to the broader genomics and precision-medicine ecosystem.

That makes the iShares Genomics Immunology and Healthcare ETF (NYSE:IDNA) one of the more targeted ways to play the theme. The fund holds both Moderna and Merck, giving investors exposure to companies involved in genomics, immunology and bioengineering.

The ARK Genomic Revolution ETF (BATS:ARKG) offers a more aggressive genomics angle. Its holdings include Twist Bioscience Corp (NASDAQ: TWST), 10x Genomics Inc (NASDAQ:TXG), Tempus AI Inc (NASDAQ:TEM), CRISPR Therapeutics (NASDAQ:CRSP) and Guardant Health Inc (NASDAQ:GH), providing exposure to genetic sequencing, molecular diagnostics and gene-editing technologies that could support personalized medicine.

Broad Biotech ETFs Already Have ExposureInvestors seeking less concentrated exposure can turn to XBI and IBB.

SPDR S&P Biotech ETF (NYSE:XBI) currently holds Moderna at about 2.8% of assets and uses a modified equal-weight approach across 155 biotechnology companies. That structure gives investors exposure to smaller biotech companies that could benefit from a wider revival in drug-development sentiment, rather than making the ETF dependent on one cancer-vaccine winner.

iShares Biotechnology ETF (NASDAQ:IBB) provides broader exposure to U.S. biotechnology and was up about 25% year to date.

The opportunity, however, remains early. Full clinical data, long-term survival results, regulatory filings and the ability to manufacture personalized vaccines at scale will determine whether the breakthrough becomes a commercially significant platform.

For ETF investors, the bigger takeaway is that biotech’s next growth cycle could extend beyond obesity drugs into cancer vaccines, genomics and precision medicine.

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Focus Partners Advisor Solutions LLC trimmed its position in Merck and Co., Inc. (NYSE: MRK) by 11.9% during the second quarter, according to its most recent 13F filing with the SEC. The fund owned 86,089 shares of the company's stock after selling 11,635 shares during the period. Focus Partners Advisor Solutions LLC's holdings

CORDA Investment Management LLC. lessened its stake in shares of Merck & Co., Inc. (NYSE:MRK – Free Report) by 1.7% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 420,154 shares of the company’s stock after selling 7,372 shares during the quarter. Merck & Co., Inc. comprises 3.3% of CORDA Investment Management LLC.’s portfolio, making the stock its 9th largest holding. CORDA Investment Management LLC.’s holdings in Merck & Co., Inc. were worth $53,990,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Kingdom Financial Group LLC. purchased a new position in Merck & Co., Inc. during the fourth quarter valued at approximately $25,000. Prosperity Bancshares Inc purchased a new stake in Merck & Co., Inc. in the 4th quarter worth approximately $26,000. Abound Financial LLC purchased a new stake in Merck & Co., Inc. in the 4th quarter worth approximately $26,000. IFC & Insurance Marketing Inc. bought a new position in Merck & Co., Inc. in the 4th quarter valued at $31,000. Finally, High Note Wealth LLC boosted its holdings in Merck & Co., Inc. by 58.9% in the 4th quarter. High Note Wealth LLC now owns 294 shares of the company’s stock valued at $31,000 after purchasing an additional 109 shares during the period. 76.07% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling In other news, EVP Richard R. Deluca sold 11,699 shares of the company’s stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $131.63, for a total value of $1,539,939.37. Following the completion of the sale, the executive vice president owned 110,167 shares of the company’s stock, valued at approximately $14,501,282.21. This represents a 9.60% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP David R. Maraldo sold 18,706 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $128.72, for a total transaction of $2,407,836.32. Following the sale, the executive vice president owned 18,212 shares of the company’s stock, valued at approximately $2,344,248.64. The trade was a 50.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 228,238 shares of company stock worth $29,977,783 over the last ninety days. Corporate insiders own 0.17% of the company’s stock.

Merck & Co., Inc. Price Performance Shares of NYSE:MRK opened at $150.67 on Tuesday. The company’s fifty day moving average price is $128.81 and its 200-day moving average price is $121.53. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.32 and a quick ratio of 1.10. The firm has a market capitalization of $371.73 billion, a price-to-earnings ratio of 120.54, a PEG ratio of 6.40 and a beta of 0.19. Merck & Co., Inc. has a one year low of $77.58 and a one year high of $154.49. Merck & Co., Inc. (NYSE:MRK – Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported ($0.13) EPS for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.13. Merck & Co., Inc. had a return on equity of 16.73% and a net margin of 4.77%.The business had revenue of $16.61 billion for the quarter, compared to analysts’ expectations of $16.37 billion. During the same quarter in the prior year, the firm earned $2.13 earnings per share. The firm’s revenue was up 5.1% on a year-over-year basis. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. On average, equities research analysts anticipate that Merck & Co., Inc. will post 2.76 earnings per share for the current fiscal year.

Merck & Co., Inc. Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Tuesday, September 15th will be issued a dividend of $0.85 per share. This represents a $3.40 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Tuesday, September 15th. Merck & Co., Inc.’s dividend payout ratio (DPR) is currently 272.00%.

Wall Street Analyst Weigh In MRK has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. boosted their price target on shares of Merck & Co., Inc. from $135.00 to $140.00 and gave the company an “overweight” rating in a research report on Monday, July 13th. Barclays increased their price objective on Merck & Co., Inc. from $140.00 to $150.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. Wells Fargo & Company boosted their target price on Merck & Co., Inc. from $145.00 to $150.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 8th. BMO Capital Markets upped their target price on Merck & Co., Inc. from $142.00 to $170.00 and gave the stock an “outperform” rating in a research note on Thursday, August 20th. Finally, Weiss Ratings cut Merck & Co., Inc. from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, August 11th. Fifteen investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $144.10.

Check Out Our Latest Stock Report on MRK

Merck & Co., Inc. Profile (Free Report)

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.

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Receive News & Ratings for Merck & Co. Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Merck & Co. Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Bellars Harris Wealth Management LLC bought a new position in shares of Merck & Co., Inc. (NYSE:MRK – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 79,847 shares of the company’s stock, valued at approximately $10,260,000. Merck & Co., Inc. makes up about 2.1% of Bellars Harris Wealth Management LLC’s holdings, making the stock its 10th biggest holding.

Several other institutional investors also recently modified their holdings of MRK. Kingdom Financial Group LLC. purchased a new stake in shares of Merck & Co., Inc. during the 4th quarter valued at $25,000. Abound Financial LLC bought a new position in Merck & Co., Inc. during the fourth quarter valued at about $26,000. Prosperity Bancshares Inc purchased a new stake in Merck & Co., Inc. during the fourth quarter worth about $26,000. High Note Wealth LLC increased its holdings in Merck & Co., Inc. by 58.9% during the fourth quarter. High Note Wealth LLC now owns 294 shares of the company’s stock worth $31,000 after buying an additional 109 shares during the last quarter. Finally, IFC & Insurance Marketing Inc. bought a new stake in Merck & Co., Inc. in the fourth quarter worth about $31,000. 76.07% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades Several research analysts have recently weighed in on MRK shares. Citigroup initiated coverage on Merck & Co., Inc. in a research note on Wednesday, May 6th. They set a “neutral” rating and a $125.00 price target for the company. BMO Capital Markets upped their price objective on shares of Merck & Co., Inc. from $142.00 to $170.00 and gave the company an “outperform” rating in a report on Thursday, August 20th. Jefferies Financial Group lowered shares of Merck & Co., Inc. from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, August 19th. Morgan Stanley raised shares of Merck & Co., Inc. from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $116.00 to $179.00 in a report on Thursday, August 20th. Finally, Wells Fargo & Company raised their price target on Merck & Co., Inc. from $145.00 to $150.00 and gave the stock an “overweight” rating in a report on Wednesday, July 8th. Fifteen equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $144.10.

View Our Latest Analysis on Merck & Co., Inc. Insider Buying and Selling In other news, EVP Chirfi Guindo sold 15,000 shares of the company’s stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $131.00, for a total value of $1,965,000.00. Following the completion of the transaction, the executive vice president directly owned 46,613 shares in the company, valued at approximately $6,106,303. This represents a 24.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP David R. Maraldo sold 18,706 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $128.72, for a total value of $2,407,836.32. Following the transaction, the executive vice president owned 18,212 shares in the company, valued at $2,344,248.64. This trade represents a 50.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 228,238 shares of company stock valued at $29,977,783 in the last three months. 0.17% of the stock is owned by corporate insiders.

Merck & Co., Inc. Price Performance NYSE:MRK opened at $150.67 on Tuesday. Merck & Co., Inc. has a 52-week low of $77.58 and a 52-week high of $154.49. The stock has a fifty day moving average of $128.81 and a 200 day moving average of $121.53. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.10 and a current ratio of 1.32. The firm has a market capitalization of $371.73 billion, a price-to-earnings ratio of 120.54, a P/E/G ratio of 6.40 and a beta of 0.19.

Merck & Co., Inc. (NYSE:MRK – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported ($0.13) earnings per share for the quarter, beating the consensus estimate of ($0.26) by $0.13. The firm had revenue of $16.61 billion for the quarter, compared to analysts’ expectations of $16.37 billion. Merck & Co., Inc. had a return on equity of 16.73% and a net margin of 4.77%.The company’s revenue was up 5.1% compared to the same quarter last year. During the same quarter last year, the firm posted $2.13 EPS. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. On average, research analysts expect that Merck & Co., Inc. will post 2.76 EPS for the current fiscal year.

Merck & Co., Inc. Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.85 per share. This represents a $3.40 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Tuesday, September 15th. Merck & Co., Inc.’s payout ratio is currently 272.00%.

Merck & Co., Inc. Profile (Free Report)

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.

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Merck and Moderna just proved their cancer vaccine works, and the ripple effects reach far beyond either company. Five names stand to collect a toll on every single dose manufactured, but not all of them carry the same risk.

On August 19, 2026, Merck (NYSE:MRK | MRK Price Prediction) and Moderna (NASDAQ:MRNA) announced positive topline Phase 3 results from INTerpath-001 for intismeran autogene, an individualized neoantigen therapy paired with Keytruda in resected melanoma. The trial beat Keytruda alone on recurrence-free survival, and no specific efficacy numbers have been released yet. Nothing is approved. Still, both partners needed this. Merck faces the Keytruda U.S. patent cliff in 2028; the franchise generated $31.641 billion in 2025 sales, according to Genetic Engineering and Biotechnology News. Its mRNA collaborator, Moderna, needs a success story outside COVID.

The key here is that every individualized dose requires sequencing a patient’s tumor and running a bespoke manufacturing batch. That drives demand for sequencing capacity and bioprocessing consumables on a per-patient basis. Here are five companies positioned to benefit if this therapy reaches the market.

BioNTech, the Rival That Rose Anyway BioNTech (NASDAQ:BNTX) is developing autogene cevumeran with Genentech, with enrollment complete in adjuvant colorectal cancer and a readout expected in 2027. Shares jumped 21.6% over the past week on read-across. BioNTech itself pushed back on that logic, telling analysts “new antigen vaccines are not created equal.” Traders bought the modality anyway.

Illumina, the Sequencing Toll Booth Illumina (NASDAQ:ILMN) supplies the NovaSeq X systems used to identify tumor neoantigens. Shares rose 15.6% on the week to $223.22. Clinical markets already represent about 65% of sequencing consumables revenue, and CEO Jacob Thaysen told investors “oncology continues to lead the pack.” It is a razor-and-blade model that benefits whichever vaccine wins.

Pacific Biosciences, the High-Beta Version Pacific Biosciences (NASDAQ:PACB) offers long-read HiFi sequencing and rose 5.8% over the past week to $1.28. However, this is a micro-cap with a $419 million market cap and a beta of 2.318. A percentage move on a dollar stock is not the same risk profile as one on a large cap, and long-read sequencing has less direct exposure to neoantigen workflows today than short-read platforms.

Repligen, the Pure-Play Bioprocessing Pick Repligen (NASDAQ:RGEN) sells filtration, chromatography, and process analytics used to manufacture biologics. Per-patient production is consumables-intensive. Q2 delivered $204 million of revenue with 13% organic growth, and CEO Olivier Loeillot said the pending BioLife acquisition “fast-tracks our cell therapy leadership.” Shares trade at $181.62.

Danaher, the Diversified Way to Own It Danaher (NYSE:DHR) owns Cytiva and Pall, the deepest bioprocessing franchise in the group, plus Leica Biosystems in cancer diagnostics. Q2 bioprocessing orders grew mid-teens, and CEO Rainer Blair called the Life Sciences result “their strongest quarter in several years.” Danaher offers less upside torque than Repligen but more downside protection, and it does not need this specific therapy to succeed.

Counterweight and What to Watch Leerink Partners analyst Daina Graybosch called the market reaction “overly optimistic,” warning that melanoma has the highest tumor mutational burden, so read-across is not automatic, and that per-patient manufacturing caps gross margin near 50% to 75% versus roughly 90% for monoclonal antibodies. That margin compression is exactly what shows up as revenue for the toolmakers. Even so, Leerink raised its 2032 intismeran forecast to $1.4 billion, while Morningstar now projects $16.8 billion by 2035.

Watch the actual efficacy numbers at the upcoming medical meeting and whether the result extends to lung, bladder, and renal cancers, where intismeran is already being evaluated across nine Phase 2 and Phase 3 studies. That is the falsifiable checkpoint.

Contact [email protected] for any questions or corrections.

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Several fast-growing industries, such as artificial intelligence, are currently attracting much of Wall Street's attention. That makes a lot of sense. Some companies in this market could deliver life-changing returns over the long run, and investors shouldn't miss out.

However, it's important not to forget about time-tested methods for earning excellent returns in equity markets over the long run, one of which is investing in dividend stocks. In that spirit, let's consider three dividend-paying companies to invest in for the next decade: Bristol Myers Squibb (BMY -0.55%), Pfizer(PFE -0.21%), and Gilead Sciences (GILD -2.14%).

Image source: The Motley Fool.

1. Bristol Myers SquibbBristol Myers is racing toward the losses of patent exclusivity for its two best-selling drugs: Eliquis, an anticoagulant it co-markets with Pfizer, and Opdivo, a cancer medicine. Why, then, has the pharmaceutical giant performed so well over the past year? The market is rewarding Bristol Myers for strong clinical progress. The company is building a portfolio that should help it navigate upcoming patent cliffs.

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In 2024, Bristol Myers earned approval for Opdivo Qvantig, a subcutaneous version of the medicine that is much easier and faster to administer. The company is also developing a next-gen anticoagulant called Milvexian that has shown highly promising efficacy results in clinical trials while decreasing the risk of bleeding, a major drawback of current options in this niche. We should see other brand-new approvals from Bristol Myers over the next few years.

These will complement the company's existing growth portfolio, which mostly comprises newer brands that won't lose patent exclusivity anytime soon. So, Bristol Myers could perform well over the long run, and it should keep its dividend program intact in the meantime. Bristol Myers offers a forward yield of 3.8%, versus the S&P 500's average of 1.1%, and the company routinely increases its dividends.

2. Pfizer Pfizer is entering a new era. The company no longer relies on its coronavirus business for top-line growth. Other products, like Padcev, a cancer drug, and Abrysvo, a vaccine for the respiratory syncytial virus, are pushing sales in the right direction, while Eliquis continues to be the biggest contributor. But what happens once it loses patent exclusivity? Pfizer's large pipeline should help it overcome that problem. The company has a vast oncology pipeline and should make significant clinical progress over the next few years.

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It may have an even greater opportunity in the weight-loss market. Pfizer is developing several differentiated weight loss drugs that may help establish the company as a leader in this fast-growing space. Could the pharmaceutical giant encounter clinical setbacks? Sure. However, given its deep late-stage pipeline, even a modest 50% success rate should lead to important approvals and a much-improved portfolio.

Some investors worry that Pfizer's 6.1% dividend yield isn't sustainable. But based on its pipeline and the fact that it has continued to boost its dividend in recent years despite several obstacles, I'd say the dividend is safe.

3. Gilead SciencesGilead Sciences is one of the leaders in the HIV drug market. The company's portfolio in this area accounts for the large majority of its top line. That could be a problem if Gilead Sciences faces increased competition and loses share in the HIV market. However, that seems unlikely to happen. Gilead Sciences' Biktarvy is the leading HIV regimen in the U.S. As Gilead Sciences has argued, this medicine routinely makes year-over-year gains in market share. Gilead Sciences' HIV portfolio also includes Descovy for PrEP, as well as Yeztugo, a newer PrEP medicine that the company launched in the U.S. last year.

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Further, Gilead Sciences has an attractive pipeline in this area. Earlier this year, it reported positive phase 3 results for an oral, once-weekly HIV therapy. This medicine is a combination of Gilead Sciences' Lenacapavir and Merck's (MRK -0.80%) Islatravir.

It could be yet another breakthrough in this niche, since it would be the first once-weekly, oral HIV regimen, if approved. Gilead Sciences' other businesses, including oncology and liver diseases, are less important, but they are helping with its diversification efforts. The company has also made acquisitions that will boost its pipeline, especially in oncology. Gilead's efforts to continue building its HIV business while making progress elsewhere should pay rich dividends down the road, literally.

The company offers a forward yield of 2.2%. Gilead Sciences' business isn't the most exciting, but the company's solid underlying operations could support consistent dividend growth over the long term.

BlackRock Inc. increased its position in Merck & Co., Inc. (NYSE:MRK – Free Report) by 0.5% in the second quarter, according to its most recent disclosure with the SEC. The institutional investor owned 226,999,837 shares of the company’s stock after purchasing an additional 1,073,507 shares during the period. BlackRock Inc. owned 9.19% of Merck & Co., Inc. worth $29,169,479,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. Cascade Financial Partners LLC raised its position in shares of Merck & Co., Inc. by 0.5% during the 2nd quarter. Cascade Financial Partners LLC now owns 14,746 shares of the company’s stock valued at $1,895,000 after acquiring an additional 80 shares in the last quarter. Somerset Trust Co lifted its position in Merck & Co., Inc. by 0.9% in the 2nd quarter. Somerset Trust Co now owns 8,701 shares of the company’s stock valued at $1,118,000 after purchasing an additional 81 shares during the last quarter. Stonebridge Financial Group LLC boosted its stake in Merck & Co., Inc. by 0.9% during the 2nd quarter. Stonebridge Financial Group LLC now owns 8,747 shares of the company’s stock valued at $1,124,000 after purchasing an additional 81 shares during the period. Stronghold Wealth Management L.L.C. grew its position in Merck & Co., Inc. by 2.6% in the 2nd quarter. Stronghold Wealth Management L.L.C. now owns 3,237 shares of the company’s stock worth $416,000 after purchasing an additional 82 shares during the last quarter. Finally, Lederer & Associates Investment Counsel CA grew its position in Merck & Co., Inc. by 0.9% in the 2nd quarter. Lederer & Associates Investment Counsel CA now owns 9,603 shares of the company’s stock worth $1,234,000 after purchasing an additional 84 shares during the last quarter. 76.07% of the stock is owned by institutional investors.

Key Stories Impacting Merck & Co., Inc. Here are the key news stories impacting Merck & Co., Inc. this week:

Positive Sentiment: Positive topline INTerpath-001 results strengthened expectations that the vaccine could extend KEYTRUDA’s growth runway and create a potentially important new oncology franchise. Merck Surges on a Melanoma Win Positive Sentiment: Analysts raised their valuation expectations: Wolfe Research increased its price target to $180 and assigned an “outperform” rating, while Argus raised its target to $170 and reiterated a “buy” rating. Wolfe Research Price Target Positive Sentiment: Investors are also anticipating a concentrated series of regulatory decisions and clinical readouts this fall, which could produce additional upside if Merck’s pipeline delivers. What Would It Take to Get MRK Stock to $200? Neutral Sentiment: The cancer-vaccine opportunity remains early. The available evidence is limited, and potential barriers include manufacturing complexity, cost, patient selection, and the need for regulatory review and broader clinical validation. How the Merck/Moderna Cancer Vaccine Works Negative Sentiment: After the recent rally, MRK is trading near or above several analysts’ prior targets, leaving less room for disappointment and making future gains increasingly dependent on successful trial results, FDA decisions, and evidence that the post-KEYTRUDA growth strategy can scale. Wall Street Analyst Weigh In Several equities analysts have recently issued reports on the company. Daiwa Securities Group upgraded Merck & Co., Inc. from a “neutral” rating to an “outperform” rating and set a $143.00 price objective for the company in a research report on Wednesday, August 12th. JPMorgan Chase & Co. raised their target price on Merck & Co., Inc. from $135.00 to $140.00 and gave the company an “overweight” rating in a research report on Monday, July 13th. Bank of America lifted their target price on Merck & Co., Inc. from $130.00 to $141.00 and gave the company a “buy” rating in a research note on Tuesday, June 30th. Morgan Stanley raised Merck & Co., Inc. from an “equal weight” rating to an “overweight” rating and increased their price target for the stock from $116.00 to $179.00 in a research note on Thursday, August 20th. Finally, Argus raised their price target on Merck & Co., Inc. from $145.00 to $170.00 and gave the company a “buy” rating in a report on Tuesday. Fifteen equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $147.60. Read Our Latest Analysis on Merck & Co., Inc.

Insider Activity In other Merck & Co., Inc. news, EVP Jennifer Zachary sold 80,315 shares of Merck & Co., Inc. stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $133.46, for a total transaction of $10,718,839.90. Following the transaction, the executive vice president owned 45,509 shares of the company’s stock, valued at $6,073,631.14. The trade was a 63.83% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP David R. Maraldo sold 18,706 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $128.72, for a total value of $2,407,836.32. Following the completion of the transaction, the executive vice president owned 18,212 shares in the company, valued at $2,344,248.64. This represents a 50.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 228,238 shares of company stock valued at $29,977,783 in the last ninety days. Corporate insiders own 0.17% of the company’s stock.

Merck & Co., Inc. Trading Up 3.9% Shares of NYSE:MRK opened at $156.54 on Wednesday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.10 and a current ratio of 1.32. The stock has a market capitalization of $386.22 billion, a price-to-earnings ratio of 125.23, a PEG ratio of 6.32 and a beta of 0.19. Merck & Co., Inc. has a 1-year low of $77.58 and a 1-year high of $156.92. The company has a 50 day moving average price of $129.64 and a 200 day moving average price of $121.80.

Merck & Co., Inc. (NYSE:MRK – Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported ($0.13) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.26) by $0.13. Merck & Co., Inc. had a return on equity of 16.73% and a net margin of 4.77%.The company had revenue of $16.61 billion for the quarter, compared to analysts’ expectations of $16.37 billion. During the same quarter in the prior year, the company earned $2.13 earnings per share. The firm’s revenue was up 5.1% on a year-over-year basis. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. On average, research analysts anticipate that Merck & Co., Inc. will post 2.76 EPS for the current fiscal year.

Merck & Co., Inc. Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Tuesday, September 15th will be given a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Tuesday, September 15th. Merck & Co., Inc.’s payout ratio is presently 272.00%.

Merck & Co., Inc. Company Profile (Free Report)

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.

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VanEck's concentrated 26-stock portfolio has outpaced Fidelity's broader 334-holding fund over five years, but at a steeper cost and higher volatility.

Stephane Bancel, CEO of Moderna (MRNA.O), was at a Lebanese restaurant celebrating a friend’s birthday late on August 13 when he got the call.

An mRNA cancer vaccine the company had been developing with Merck (MRK.N) had hit its mark — the first success of a therapeutic cancer vaccine in late-stage testing after more than 100 years of failed attempts.

Cancer experts hailed it as the beginning of an era of custom-made vaccines that train the immune system to ​fight an individual patient’s cancer. In a trial of more than 1,000 patients with localized melanoma, the vaccine kept tumors from coming back or spreading.

With full trial details pending, Wall Street is already estimating ‌billions of dollars in sales.

Bancel likened news from that call to the day in late 2020 that Moderna announced its COVID-19 vaccine trial results.

"It was a moment that we'd worked really hard toward. We knew what was at stake for the planet with COVID," Bancel said in an interview. It's the same with cancer, he said, adding that the disease touches nearly everybody at some point.

That moment of joy was brief. "I went right away into, 'OK, what are all the things we have to do?'"

For Dean Li, president of Merck Research Laboratories, it was largely the ​same. When Eliav Barr, Merck's head of global clinical development, called Li, he already had a list of urgent tasks: ready the data for presentation at an international cancer meeting, turn to the U.S. FDA review, ​and apply the study's strengths to other ongoing trials.

"It isn't hallelujah," Li recalls. "It's boom."

HOW THEY GOT THERE
For Merck and Moderna, it was a moment built over 10 years, according to ⁠eight current and former company executives.

When they announced a partnership in 2016 to develop a cancer vaccine, the companies had been working for over a year on a separate vaccine venture.

For the cancer collaboration, Merck paid $200 million upfront in 2016 ​and another $250 million in 2022. The companies share costs and profits.

At that time, Merck's Keytruda was emerging as a powerhouse in a new class of drugs called checkpoint inhibitors that could unleash the immune system to fight cancers by removing a natural ​brake.

"What Keytruda taught the world was that, yes, there is an immune recognition of cancer, but cancer is clever in putting up barriers, and Keytruda removes those barriers," Merck's Barr said during an interview in late May.

Next, he said, companies, including Merck, looked for ways to further rev up the immune system, testing Keytruda with next-generation immunotherapy drugs such as TIGIT inhibitors. "It didn't work," Barr said.

Tal Zaks, who served as Moderna's chief medical officer from 2015-2021, immigrated to the U.S. from Israel in 1996 to work on cancer vaccines at the National Cancer Institute.

"We ​failed back then, and we failed for many years," Zaks said.

But he thought new technologies based on mRNA plus checkpoint inhibitors, as well as cheaper genetic sequencing, might open a path toward success.

FINDING A PARTNER
Moderna had the mRNA technology, but as a ​young company, expensive cancer trials were out of reach.

Bancel said Moderna spoke with companies that had checkpoint inhibitors, but knew Merck well and was swayed by its experience mounting Keytruda trials.

Keytruda, which Merck’s Li calls a "miracle drug," is used against 20 different kinds of ‌cancerous tumors and ⁠45 types and stages of cancer. But exactly what aspects of the tumor the drug targets, and why some patients respond better than others, remains a mystery.

Messenger ribonucleic acid, or mRNA, is present in every cell of the body. Its job is to carry genetic instructions from the cell nucleus to parts that make specific proteins.

The vaccine, known as intismeran autogene, trains the immune system to attack cancer cells by targeting mutations unique to each patient's tumors.

Prior cancer vaccines that attempted to train the immune system to target one or two specific tumor mutations failed.

The companies decided to test the vaccine in melanoma, which has among the highest number of mutations of any cancer and against which checkpoint inhibitors had a record of success.

They also ​decided to test it in patients with early-stage melanoma following ​surgical removal of their tumors. That gave the companies ⁠critical time to create a customized vaccine based on a patient's tumor and additional time for their immune systems to respond.

With mRNA technology, the companies were able to target dozens of mutations.

"You have many, many more shots on goal and therefore a much greater chance to succeed," Moderna co-founder and MIT scientist Robert Langer said via email.

The companies paired the vaccine ​with Keytruda’s ability to activate the body's immune system T-cells that hunt down abnormal cells.

"The whole special thing about Keytruda was that it would unlock the dogs of war," ​Li said.

The vaccine provides 34 patient-specific ⁠cancer targets for those dogs to recognize, he said, and only one needs to work. "With the personalized cancer treatment, the dog has your scent."

WHAT'S NEXT
Both companies stand to benefit significantly if the vaccine is approved. U.S. approval could come as soon as next year.

Merck later this decade faces the patent expiration of Keytruda, until recently the world's top-selling drug. For Moderna, it offers a lifeline amid sagging COVID shot demand, and a reputational boost.

U.S. Health Secretary Robert F. Kennedy Jr. has criticized the safety and efficacy of ⁠mRNA vaccines for ​infectious disease, without evidence, and cut $500 million in related projects.

Moderna's shares, which had fallen around 90% from their COVID peak, are up more than 130% ​since the vaccine results were announced. Wall Street analysts see sales topping $1 billion by 2030 and $3 billion by 2035, according to LSEG data.

The next test is finding whether the approach can work in cancers with fewer mutations, including lung, kidney and pancreatic cancers.

In the near term, the companies plan to ​dig into the melanoma data to see if they can improve the vaccine.

"I don't think this is our last version of intismeran," Bancel said.

111 Capital purchased a new stake in Merck & Co., Inc. (NYSE:MRK – Free Report) during the second quarter, according to its most recent filing with the SEC. The firm purchased 4,582 shares of the company’s stock, valued at approximately $589,000.

Several other hedge funds also recently bought and sold shares of the company. Kingdom Financial Group LLC. acquired a new stake in Merck & Co., Inc. during the 4th quarter worth $25,000. Abound Financial LLC bought a new position in Merck & Co., Inc. during the fourth quarter worth about $26,000. Prosperity Bancshares Inc acquired a new position in Merck & Co., Inc. in the fourth quarter valued at about $26,000. High Note Wealth LLC grew its stake in Merck & Co., Inc. by 58.9% in the fourth quarter. High Note Wealth LLC now owns 294 shares of the company’s stock valued at $31,000 after acquiring an additional 109 shares during the period. Finally, IFC & Insurance Marketing Inc. acquired a new position in Merck & Co., Inc. in the fourth quarter valued at about $31,000. 76.07% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Merck & Co., Inc. In other news, EVP Chirfi Guindo sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $135.00, for a total transaction of $1,350,000.00. Following the transaction, the executive vice president directly owned 36,613 shares of the company’s stock, valued at approximately $4,942,755. This trade represents a 21.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP David R. Maraldo sold 18,706 shares of Merck & Co., Inc. stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $128.72, for a total transaction of $2,407,836.32. Following the completion of the sale, the executive vice president owned 18,212 shares of the company’s stock, valued at approximately $2,344,248.64. The trade was a 50.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 228,238 shares of company stock valued at $29,977,783. 0.17% of the stock is currently owned by insiders.

More Merck & Co., Inc. News Here are the key news stories impacting Merck & Co., Inc. this week: Positive Sentiment: Merck and Moderna reported that their personalized cancer therapy met key Phase 3 goals, improving recurrence-free and distant metastasis-free survival for high-risk melanoma patients when added to Keytruda. The result is the first major late-stage win for an mRNA cancer vaccine and strengthens the potential for regulatory approval and broader oncology applications. MRK/MRNA’s Personalized Cancer Therapy Delivers First Phase III Win Positive Sentiment: Several Wall Street firms raised their outlooks for MRK: Goldman Sachs increased its price target to $160 and kept a Buy rating, while BMO raised its target to $170 and UBS lifted its target to $175. Morgan Stanley also upgraded the shares to Overweight with a $179 target after the cancer-trial success. Positive Sentiment: Investors see Merck’s newer products, acquired assets and pipeline programs as a potential growth cushion against Keytruda’s eventual patent expiration. The company’s expanding portfolio could help diversify revenue beyond its flagship drug. Can Merck’s New Drugs Offer Growth Cushion Ahead of Keytruda LOE? Neutral Sentiment: Unusually high options activity indicates heightened investor interest and potential volatility, but it does not by itself establish the direction of the stock. Negative Sentiment: RBC Capital Markets downgraded Merck to Sector Perform and set a $150 target, arguing that execution risks and the 2028 Keytruda loss of exclusivity are being underestimated. RBC said near-term catalysts are attractive, but the stock’s valuation leaves limited room for additional gains. Merck upgraded at Morgan Stanley after cancer trial win; RBC downgrades Negative Sentiment: Jefferies separately moved Merck from Strong Buy to Hold. The central concern is that the shares have already rallied substantially on the trial news, making the current valuation appear demanding relative to the remaining patent and execution risks. Merck & Co., Inc. Stock Up 2.3% MRK stock opened at $152.43 on Friday. Merck & Co., Inc. has a twelve month low of $77.58 and a twelve month high of $154.49. The company has a quick ratio of 1.10, a current ratio of 1.32 and a debt-to-equity ratio of 1.22. The business has a 50 day moving average price of $128.09 and a two-hundred day moving average price of $121.23. The company has a market cap of $376.07 billion, a price-to-earnings ratio of 121.94, a P/E/G ratio of 6.58 and a beta of 0.19.

Merck & Co., Inc. (NYSE:MRK – Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported ($0.13) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.26) by $0.13. Merck & Co., Inc. had a net margin of 4.77% and a return on equity of 16.73%. The business had revenue of $16.61 billion during the quarter, compared to the consensus estimate of $16.37 billion. During the same period last year, the business posted $2.13 EPS. Merck & Co., Inc.’s revenue was up 5.1% on a year-over-year basis. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. Analysts anticipate that Merck & Co., Inc. will post 2.76 EPS for the current fiscal year.

Merck & Co., Inc. Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.85 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $3.40 dividend on an annualized basis and a dividend yield of 2.2%. Merck & Co., Inc.’s dividend payout ratio (DPR) is currently 272.00%.

Analyst Ratings Changes MRK has been the topic of a number of research analyst reports. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $120.00 price target on shares of Merck & Co., Inc. in a research report on Monday, July 6th. Jefferies Financial Group lowered Merck & Co., Inc. from a “strong-buy” rating to a “hold” rating in a research report on Wednesday. Citigroup began coverage on Merck & Co., Inc. in a research note on Wednesday, May 6th. They set a “neutral” rating and a $125.00 target price for the company. JPMorgan Chase & Co. raised their target price on shares of Merck & Co., Inc. from $135.00 to $140.00 and gave the stock an “overweight” rating in a report on Monday, July 13th. Finally, Weiss Ratings lowered shares of Merck & Co., Inc. from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, August 11th. Fifteen investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, Merck & Co., Inc. presently has an average rating of “Moderate Buy” and a consensus price target of $144.10.

Get Our Latest Stock Analysis on Merck & Co., Inc.

About Merck & Co., Inc. (Free Report)

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.

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Advisors Management Group Inc. ADV lowered its stake in shares of Merck & Co., Inc. (NYSE:MRK – Free Report) by 95.0% in the second quarter, according to its most recent 13F filing with the SEC. The fund owned 2,579 shares of the company’s stock after selling 48,510 shares during the period. Advisors Management Group Inc. ADV’s holdings in Merck & Co., Inc. were worth $331,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Brighton Jones LLC boosted its stake in Merck & Co., Inc. by 29.5% in the 4th quarter. Brighton Jones LLC now owns 38,278 shares of the company’s stock worth $3,808,000 after purchasing an additional 8,710 shares during the period. Sivia Capital Partners LLC lifted its position in Merck & Co., Inc. by 52.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 11,494 shares of the company’s stock worth $910,000 after buying an additional 3,941 shares during the last quarter. Diversify Advisory Services LLC grew its holdings in shares of Merck & Co., Inc. by 94.1% during the 2nd quarter. Diversify Advisory Services LLC now owns 32,256 shares of the company’s stock valued at $2,590,000 after purchasing an additional 15,636 shares during the last quarter. Diversify Wealth Management LLC lifted its stake in shares of Merck & Co., Inc. by 22.2% in the 2nd quarter. Diversify Wealth Management LLC now owns 38,031 shares of the company’s stock valued at $3,054,000 after acquiring an additional 6,897 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Merck & Co., Inc. by 111.7% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 681,128 shares of the company’s stock worth $53,918,000 after buying an additional 359,356 shares during the period. Institutional investors own 76.07% of the company’s stock.

Merck & Co., Inc. Stock Performance NYSE MRK opened at $152.43 on Friday. Merck & Co., Inc. has a 1-year low of $77.58 and a 1-year high of $154.49. The stock has a 50-day moving average of $128.09 and a two-hundred day moving average of $121.23. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.32 and a quick ratio of 1.10. The company has a market cap of $376.07 billion, a P/E ratio of 121.94, a P/E/G ratio of 6.43 and a beta of 0.19.

Merck & Co., Inc. (NYSE:MRK – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported ($0.13) EPS for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.13. The company had revenue of $16.61 billion for the quarter, compared to the consensus estimate of $16.37 billion. Merck & Co., Inc. had a net margin of 4.77% and a return on equity of 16.73%. The company’s quarterly revenue was up 5.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.13 EPS. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. As a group, analysts anticipate that Merck & Co., Inc. will post 2.77 EPS for the current year. Merck & Co., Inc. Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Tuesday, September 15th will be paid a dividend of $0.85 per share. The ex-dividend date is Tuesday, September 15th. This represents a $3.40 dividend on an annualized basis and a yield of 2.2%. Merck & Co., Inc.’s dividend payout ratio is currently 272.00%.

Insiders Place Their Bets In other news, EVP Chirfi Guindo sold 15,000 shares of the company’s stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $131.00, for a total transaction of $1,965,000.00. Following the completion of the sale, the executive vice president owned 46,613 shares in the company, valued at $6,106,303. This represents a 24.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP David R. Maraldo sold 18,706 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $128.72, for a total transaction of $2,407,836.32. Following the completion of the transaction, the executive vice president owned 18,212 shares of the company’s stock, valued at $2,344,248.64. This represents a 50.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 228,238 shares of company stock valued at $29,977,783. 0.17% of the stock is owned by company insiders.

Analysts Set New Price Targets Several equities analysts recently issued reports on MRK shares. Citigroup started coverage on Merck & Co., Inc. in a research report on Wednesday, May 6th. They issued a “neutral” rating and a $125.00 price objective on the stock. Jefferies Financial Group lowered shares of Merck & Co., Inc. from a “strong-buy” rating to a “hold” rating in a research note on Wednesday. CICC Research initiated coverage on shares of Merck & Co., Inc. in a research report on Wednesday, June 24th. They set an “outperform” rating and a $138.00 target price on the stock. Morgan Stanley upgraded shares of Merck & Co., Inc. from an “equal weight” rating to an “overweight” rating and raised their price target for the company from $116.00 to $179.00 in a report on Thursday. Finally, Argus increased their price objective on Merck & Co., Inc. from $130.00 to $145.00 and gave the company a “buy” rating in a report on Tuesday, August 11th. Fifteen investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $144.10.

Check Out Our Latest Stock Report on Merck & Co., Inc.

More Merck & Co., Inc. News Here are the key news stories impacting Merck & Co., Inc. this week:

Positive Sentiment: Merck and Moderna reported that their personalized cancer therapy met key Phase 3 goals, improving recurrence-free and distant metastasis-free survival for high-risk melanoma patients when added to Keytruda. The result is the first major late-stage win for an mRNA cancer vaccine and strengthens the potential for regulatory approval and broader oncology applications. MRK/MRNA’s Personalized Cancer Therapy Delivers First Phase III Win Positive Sentiment: Several Wall Street firms raised their outlooks for MRK: Goldman Sachs increased its price target to $160 and kept a Buy rating, while BMO raised its target to $170 and UBS lifted its target to $175. Morgan Stanley also upgraded the shares to Overweight with a $179 target after the cancer-trial success. Positive Sentiment: Investors see Merck’s newer products, acquired assets and pipeline programs as a potential growth cushion against Keytruda’s eventual patent expiration. The company’s expanding portfolio could help diversify revenue beyond its flagship drug. Can Merck’s New Drugs Offer Growth Cushion Ahead of Keytruda LOE? Neutral Sentiment: Unusually high options activity indicates heightened investor interest and potential volatility, but it does not by itself establish the direction of the stock. Negative Sentiment: RBC Capital Markets downgraded Merck to Sector Perform and set a $150 target, arguing that execution risks and the 2028 Keytruda loss of exclusivity are being underestimated. RBC said near-term catalysts are attractive, but the stock’s valuation leaves limited room for additional gains. Merck upgraded at Morgan Stanley after cancer trial win; RBC downgrades Negative Sentiment: Jefferies separately moved Merck from Strong Buy to Hold. The central concern is that the shares have already rallied substantially on the trial news, making the current valuation appear demanding relative to the remaining patent and execution risks. Merck & Co., Inc. Profile (Free Report)

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.

Read More Five stocks we like better than Merck & Co., Inc. Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding MRK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Merck & Co., Inc. (NYSE:MRK – Free Report).

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MRK's growing pipeline, acquired assets and new product launches are gaining traction as it builds a diversified growth base ahead of Keytruda's 2028 LOE.

Key Takeaways J&J's diversified portfolio and Innovative Medicine growth support its outlook despite Stelara's LOE.Merck's Keytruda drives growth, but its 2028 patent expiry creates a major long-term challenge.Merck's new drugs and acquisitions strengthen growth prospects, while Gardasil sales remain under pressure. Johnson & Johnson (JNJ - Free Report) and Merck (MRK - Free Report) are two of the largest U.S. healthcare companies, making them compelling stocks to compare.

Both companies have strong positions in oncology and several other therapeutic areas, but their portfolios differ meaningfully. J&J has a broader healthcare footprint, with Innovative Medicine franchises spanning oncology, immunology, neuroscience, cardiovascular disease, pulmonary hypertension and infectious diseases, complemented by its sizable MedTech business.

Merck, meanwhile, has a particularly strong presence in oncology and vaccines, led by Keytruda and Gardasil, along with businesses in cardiovascular/pulmonary hypertension, virology and other hospital-focused medicines.

Both companies are contending with upcoming patent expirations. So, which stock looks more attractive today? A closer look at their fundamentals, growth prospects and key risks can help investors decide.

The Case for J&J StockJ&J’s biggest strength is its diversified business model, operating through pharmaceuticals and medical devices divisions, which reduces dependence on any single product or market. It has more than 275 subsidiaries and boasts 28 platforms or products with more than $1 billion in annual sales, with the aim of adding even more. Its diversification helps it to withstand economic cycles more effectively. It also boasts strong cash flows and has increased its dividends for 64 consecutive years. J&J believes the depth of its portfolio and pipeline is stronger than ever.

J&J’s Innovative Medicines segment is the company’s primary growth engine. Innovative Medicine segment sales rose 6.2% organically in the first half of 2026, despite the loss of exclusivity (LOE) of the blockbuster drug, Stelara. Growth was driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth.

J&J’s MedTech growth slowed in the second quarter, reflecting weakness in Cardiovascular, particularly Abiomed due to slow procedure volumes, and continued China VBP headwinds.

J&J’s recent pipeline launches, including Inlexzo, Imaavy and Icotyde, are gaining traction and could become significant growth drivers in future quarters. J&J’s new cancer drugs, Carvykti, Tecvayli, Talvey and Rybrevant/Lazcluze are contributing significantly to top-line growth, driven by market share gains.

 J&J believes 10 of its new products in the Innovative Medicine segment have the potential to reach peak sales of $5 billion, including Talvey, Tecvayli, Imaavy, Caplyta, Inlexzo, Rybrevant plus Lazcluze and Icotyde.

J&J expects 2026 to be a year of accelerated growth. The company is confident that it can achieve its target of generating more than $100 billion in revenues in 2026. It expects sales to continue to improve in 2027, with a “line of sight” to double-digit growth by the end of the decade. J&J believes that it is already achieving this growth. Though J&J’s total revenues are currently rising in a mid-single-digit range, excluding Stelara, J&J’s top line grew in a double-digit range in both the first and second quarters of 2026.

J&J also expects its MedTech business to do better in the second half of the year compared with the first, driven by strength in Vision, Orthopedics, Surgery and better performance in Cardiovascular. While the Abiomed softness creates a new overhang, it accounts for less than 2% of sales, and J&J has other top-line drivers to compensate.

However, J&J faces its share of headwinds, including the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi, and softness in MedTech. The legal battle surrounding its talc lawsuits is another headwind. Though the issue is close to resolution, it has not yet been fully resolved.

The Case for MRK StockMerck boasts more than six blockbuster drugs in its portfolio, with Keytruda being the key top-line driver. Keytruda, approved for several types of cancers, has played an instrumental role in driving Merck’s steady revenue growth over the past few years. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then.

Merck expects Keytruda to achieve peak sales of $35 billion by 2028. Merck’s other oncology drugs, Welireg, AstraZeneca (AZN - Free Report) -partnered Lynparza and Eisai-partnered Lenvima, are also contributing to top-line growth.

MRK’s Animal Health business is also a key contributor to its top-line growth, with sales expected to more than double by the mid-2030s.

Merck’s expanding drug pipeline and potential new blockbuster drugs beyond Keytruda look encouraging. Its late-stage pipeline has expanded substantially since 2021, supported by in-house progress as well as the addition of candidates through M&A deals. Merck expects to launch 20 new drugs by 2030, with many already launched.

Its new products, pulmonary arterial hypertension drug Winrevair, cancer drug Welireg and 21-valent pneumococcal conjugate vaccine Capvaxive, have begun to contribute significantly to top-line growth.

The company has accelerated acquisitions over the past year as it prepares for the 2028 patent expiry of Keytruda. The company strengthened its pipeline with the 2025 acquisition of Verona Pharma, adding COPD drug Ohtuvayre. The 2026 buyouts of Cidara Therapeutics and Terns Pharmaceuticals added late-stage influenza and hematology/cancer pipeline assets, respectively.

However, sales of Merck’s second-largest product, its HPV vaccine Gardasil, are facing a slowdown, with sales declining 9% in the first half of 2026 due to weaker demand in China, Japan and the United States. Sales of some other Merck vaccines, like Proquad, M-M-R II, Varivax, Rotateq and Vaxneuvance, also declined in the first half of 2026.

Merck is heavily reliant on Keytruda. While Keytruda may be Merck’s biggest strength and a solid reason to own the stock, the company is excessively dependent on the drug. Keytruda’s core U.S. patent is expected to expire around 2028, with additional patents expiring shortly thereafter. Keytruda is expected to face significant biosimilar competition around 2028-2029. Once biosimilars enter the market, Keytruda’s sales are likely to decline sharply.

Merck faces continued revenue pressure from declining demand for its diabetes drugs Januvia/Janumet and increasing generic erosion across products such as Isentress/Isentress HD, Bridion and Dificid.

Merck’s new products, Winrevair, Welireg and Capvaxive, key pipeline progress and the expansion of its respiratory and infectious disease and oncology portfolios through the acquisitions of Verona Pharma, Cidara Therapeutics and Terns Pharmaceuticals have improved its long-term growth prospects.

How Do Estimates Compare for JNJ & MRK?The Zacks Consensus Estimate for J&J’s 2026 sales and EPS implies a year-over-year increase of 7.3% and 6.3%, respectively. The Zacks Consensus Estimate for 2026 earnings has declined from $11.65 to $11.59 over the past 30 days, while that for 2027 earnings is stable at $12.80 over the same time frame.

JNJ Estimate Movement
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MRK’s 2026 sales and EPS implies a year-over-year increase of 3.5% and 5%, respectively. The Zacks Consensus Estimate for 2026 earnings has declined from $3.21 to $2.98 over the past 30 days, while that for 2027 has decreased from $9.71 to $9.67.

MRK Estimate Movement
Image Source: Zacks Investment Research

Price Performance and Valuation of JNJ & MRKShares of J&J and Merck have surged 30.6% and 43.6%, respectively, year to date compared with the industry’s growth of 21.3%.

Image Source: Zacks Investment Research

MRK looks slightly more attractive than J&J from a valuation standpoint. Going by the price/earnings ratio, J&J’s shares currently trade at 21.63 forward earnings, higher than 19.73 for the industry and its 5-year mean of 15.65. Merck’s shares currently trade at 20.56 forward earnings, above the industry as well as the stock’s 5-year mean of 12.86.

Image Source: Zacks Investment Research

J&J’s dividend yield is 2.01%, while Merck’s is slightly higher at 2.28%.

Image Source: Zacks Investment Research

JNJ or MRK: Which Is a Better Pick?J&J carries a Zacks Rank #3 (Hold), while Merck has a Zacks Rank of 4 (Sell) at present, which clearly shows that J&J is the winner. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

J&J’s investment case is supported by steady sales and earnings growth, continued strength in its Innovative Medicine business, and improving fundamentals and outlook. In addition, ongoing pipeline advancements, favorable regulatory developments and strategic M&A activity have further strengthened the company’s growth prospects and investor sentiment.

On the other hand, Merck’s new products, strong progress in its pipeline, and business development and acquisitions have increased confidence that Merck may be able to maintain growth even after Keytruda loses exclusivity. However, Merck faces several near-term challenges, including persistent challenges for Gardasil, potential competition for Keytruda, and rising competitive and generic pressure on some of its drugs. Also, near-term profitability remains affected by costs related to Merck’s various acquisitions.

Merck
MRK -2.11% 70

, the pharmaceutical giant behind Keytruda, dipped roughly 0.5% to $151.39 Thursday afternoon after blasting 12.6% higher Wednesday. That tiny retreat changes nothing. The stock had just scored a record close as investors raced to price in the enormous potential of Merck and Moderna's personalized melanoma vaccine.

The science delivered. Their 1,137-patient Phase 3 study met both its recurrence-free-survival and distant-metastasis-free-survival goals. The trial pitted Keytruda alone against Keytruda plus intismeran in patients whose high-risk melanoma had been surgically removed. No new safety concerns appeared. The full efficacy data are still coming, however, and those numbers will decide whether this rally has another gear.

Melanoma could be just the beginning. Merck and Moderna are also testing the platform in lung, bladder, kidney, pancreatic and stomach cancers. That matters because Keytruda generated about $8.4 billion in second-quarter sales—roughly half of Merck's revenue. A successful vaccine combination could stretch that blockbuster franchise even further. But the excitement is no longer cheap: Merck trades 26.28% above its $119.88 GF Value estimate. The breakthrough is real. So is the premium.

Check the Warning Signs for

MRK

now!

Diane King Hall discusses the sharp sell-off in Advance Auto Parts (AAP) as the guidance shows strong headwinds. Deere (DE) offered plenty of strength in its earnings as construction revenues rise.

Key Takeaways MRK and MRNA's personalized melanoma therapy combo met both primary & secondary endpoints in phase III study.Merck and Moderna saw shares jump 12.6% and 177%, respectively, after the phase III results.MRK and MRNA plan to engage global regulators on a potential filing for intismeran with Keytruda. Shares of both Merck (MRK - Free Report) and its partner Moderna (MRNA - Free Report) jumped to a 52-week high yesterday after the companies announced positive top-line data from a phase III study, which evaluated their personalized cancer therapy combo in certain patients with high-risk melanoma, a serious form of skin cancer.

The phase III INTerpath-001 study evaluated Moderna’s investigational mRNA-based individualized neoantigen therapy (“INT”), intismeran autogene (mRNA-4157 or V940), in combination with Merck’s blockbuster PD-L1 inhibitor, Keytruda (pembrolizumab), as an adjuvant treatment for patients with completely resected stage IIB-IV melanoma.

The INTerpath-001 study met its primary endpoint of recurrence-free survival (“RFS”) and key secondary endpoint of distant metastasis-free survival (“DMFS”).

The companies noted that this is the first combination regimen to show statistically significant and clinically meaningful improvements in both RFS and DMFS versus Keytruda alone, a standard-of-care immunotherapy in the adjuvant melanoma setting.

The safety profile of the combination therapy was similar to that seen in previously reported studies, with no new safety concerns observed. The study will continue to assess additional secondary endpoints, including overall survival.

Shares of Merck were up 12.6% while Moderna stock jumped a staggering 177% yesterday following the announcement of the news.

MRK & MRNA Price PerformanceYear to date, shares of Merck have rallied 46.7%, while Moderna stock has skyrocketed 491.3% compared with the industry’s increase of 21.3%.

Image Source: Zacks Investment Research

More on MRK & MRNA’s Personalized Cancer TherapyIntismeran autogene is an experimental, personalized mRNA-based cancer therapy that is designed using the unique genetic mutations found in a patient’s tumor and can target up to 34 tumor-specific antigens.

Merck and Moderna plan to present detailed data from the INTerpath-001 study at an upcoming international medical conference and engage with regulatory authorities regarding a potential filing seeking approval for intismeran in combination with Keytruda for the given indication.

The latest results build on positive phase IIb data from the KEYNOTE-942/mRNA-4157-P201 study. Five-year follow-up data presented at the 2026 ASCO annual meeting showed that the combination reduced the risk of recurrence or death by 49% and the risk of distant metastasis or death by 59% versus Keytruda alone.

Merck and Moderna are evaluating intismeran across the broader INTerpath clinical development program, which currently includes nine phase II and phase III studies across melanoma, non-small cell lung cancer, bladder cancer and renal cell carcinoma. The program is evaluating intismeran in combination with Keytruda and other anticancer therapies, as well as a monotherapy.

Our Take on the ResultsThe latest positive phase III readout from the INTerpath-001 study marks an important milestone for both companies as they seek to advance personalized mRNA-based cancer treatment for long-term growth. For Merck, intismeran could strengthen Keytruda’s lifecycle and broaden its reach across other cancer indications, while Moderna could establish oncology as a key growth driver beyond vaccines. The broader INTerpath program offers additional upside across multiple tumor types.

MRK & MRNA Zacks Rank & Stocks to ConsiderBoth Merck and Moderna currently carry a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Repligen (RGEN - Free Report) and Anika Therapeutics (ANIK - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.61 during the same time. RGEN’s shares have gained 7.6% year to date.

Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%.

Over the past 60 days, estimates for Anika Therapeutics’ 2026 earnings per share have risen from 41 cents to $1.05, while estimates for 2027 have increased from 46 cents to 95 cents during the same time. ANIK’s shares have surged 121.3% year to date.

Anika Therapeutics’ earnings beat estimates in each of the trailing three quarters, with the average surprise being 950.00%.

Moderna and Merck delivered positive news about their personalized skin-cancer vaccine Wednesday. Investors bought their shares in droves.

Moderna Inc.’s (NASDAQ:MRNA) latest cancer-vaccine breakthrough could be doing more than sending its stock sharply higher. It may be giving investors a reason to revisit an mRNA investment thesis that has largely been defined by COVID-19. ETFs tied to precision medicine names are also getting a boost.

• Moderna stock is at critical resistance. Why are MRNA shares at highs?

Moderna and Merck & Co Inc. (NYSE:MRK) announced positive topline results from the Phase 3 INTerpath-001 trial of intismeran autogene, an individualized mRNA-based neoantigen therapy, in patients with completely resected stage IIB-IV melanoma. The combination of intismeran and Merck’s Keytruda delivered statistically significant improvements in both recurrence-free survival and distant metastasis-free survival versus Keytruda alone.

The result is particularly significant because it represents the first positive Phase 3 readout for an individualized mRNA cancer therapy.

For ETF investors, however, the bigger question is whether this can revive the broader precision-medicine trade.

Read Next

Moderna’s Cancer Win Changes the mRNA NarrativeThe mRNA investment story has long centered on vaccines, but Merck and Moderna’s latest result points to a bigger opportunity: personalized cancer treatments tailored to each patient’s tumor mutations.

The companies have worked on the therapy since 2016, with Merck exercising its option to co-develop and commercialize it in 2022. The partners split development costs and profits equally.

For Moderna, the therapy offers a path beyond COVID products; for Merck, it could strengthen its oncology franchise. Keytruda generated $31.7 billion in 2025 sales, making a successful personalized cancer vaccine a potentially important long-term growth driver.

Which ETFs Could Benefit?The most direct thematic exposure comes from the iShares Genomics Immunology and Healthcare ETF (NYSE:IDNA). The fund currently holds Moderna and Merck at roughly 8% of assets cumulatively. IDNA holds 50 companies spanning genomics, immunology and bioengineering, making it a relatively targeted way to capture the precision-medicine theme rather than simply the broader pharmaceutical sector. The fund surged 13% on Wednesday.

The ARK Genomic Revolution ETF (BATS:ARKG) offers a more aggressive version of the trade. Its mandate focuses on companies involved in genomics, molecular medicine, gene therapy and related innovation. ARKG gained 64% so far in 2026, highlighting how strongly the genomics theme has already been performing. ARK was up 10% at market close on Wednesday.

For investors wanting broader biotech exposure, the SPDR S&P Biotech ETF (NYSE:XBI) and iShares Biotechnology ETF (NASDAQ:IBB) provide different approaches. XBI uses a modified equal-weight structure across 155 holdings, while IBB held 247 companies. XBI was trading 5.90% higher, and IBB was 6.58% higher at market close on Wednesday.

The Bigger ETF TradeThe Moderna-Merck result does not mean personalized cancer vaccines are suddenly a commercial certainty. Detailed clinical data, regulatory review, manufacturing economics and results across additional tumor types still matter.

But it does change the conversation.

If mRNA can successfully move from infectious-disease vaccines into individualized oncology, the opportunity extends well beyond Moderna. Sequencing, genomics, diagnostics, immunology and drug discovery could all become part of the same investment ecosystem.

For ETF investors, that makes IDNA and ARKG the more targeted ways to play the precision-medicine narrative, while XBI and IBB offer broader exposure to a potential biotech revival.

The COVID-era mRNA trade may be over. The mRNA-for-cancer trade could be just beginning.

Read Next

Photo: Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Shares of Moderna (MRNA) and Merck (MRK) are soaring Wednesday after the companies reported a potentially historic breakthrough for their personalized mRNA cancer vaccine.

A late-stage trial that combined a messenger ribonucleic acid (mRNA) shot jointly developed by Moderna (MRNA +147.90%) and Merck with Merck’s Keytruda yielded strong results in what's being viewed as a potential game-changing cancer treatment.

The Phase 3 trial enrolled over 1,100 patients with melanoma whose tumors had been completely removed by surgery.

Patients who received the personalized vaccine alongside Keytruda went longer before their cancer returned, and longer before it spread to distant parts of the body, than patients who received Keytruda alone.

Whether that means some patients are cured or simply go longer before their cancer returns isn’t yet known, as Moderna and Merck have only released top-line results.

"It's a big moment for medicine, a big moment for patients," Moderna CEO Stéphane Bancel told CNBC.

This is the first Phase 3 trial of an mRNA cancer therapy and individualized neoantigen therapy (INT) to show better results over the sole use of Keytruda for such treatment.

Here's what it means for both stocks.

Image source: Getty Images.

Moderna and Merck stocks soarThere's perhaps no clearer signal of how important these results are than the fact that Moderna and Merck stocks had ripped roughly 128% and 1%, respectively, as of 12:30 p.m. ET.

It's not uncommon to see biotech stocks move sharply following a significant trial. A phase 3 trial is the final test required before a company can begin discussions with regulators about commercializing a drug.

Beyond potentially changing the reality for melanoma survivors, the new method demonstrated how a more personalized cancer treatment could be applied for other types of cancer.

Dr. Jane Healy, Merck's head of oncology early development, told CNBC that the personalized approach goes after certain mutations in a tumor, teaching the immune system to attack and eliminate those mutations. Keytruda helps the body fight cancer more effectively.

Today's Change

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Following the trial results, William Blair analyst Myles Minter upgraded Moderna stock to Outperform and said the company now has a clear path to adding new revenue sources beyond infectious disease and its COVID-19 business.

Despite the strong rally, Moderna stock trades roughly 64% lower than it did in August 2021, as investors have struggled to understand what would be next for the business after the pandemic.

Merck is a much larger company than Moderna, which is likely why its stock moved more modestly, albeit still a significant one for a company of its size. The stock is up over 41% this year and has hit an all-time high.

The combined treatment could be very important for the company, which faces a patent cliff on Keytruda in 2028, according to Barrons.

At that point, other companies would be able to make and sell similar drugs.

What's next?In a joint press release on the phase 3 trial results, both Merck and Moderna said they plan to present the findings to regulators at an upcoming international medical meeting.

Today's Change

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With both stocks now soaring and Merck at an all-time high, investors may want to let them breathe for a minute.

Both companies still need to present the results and obtain regulatory approval. Merck now trades at 54 times forward earnings, and Moderna is still not yet profitable.

That said, investors can certainly take at least a small position in either stock, given the potential of such a treatment in other cancers. However, they should continue to closely follow developments in this treatment to ensure it meets other important milestones necessary for commercialization.

The news today should also give Moderna investors more confidence in the company's ability to follow through on its oncology pipeline.

Given its smaller size and less-diverse product line, Moderna will be the higher-risk, higher-reward stock.