Merck & Company, IncNYSE: MRK
Health Care · Pharmaceuticals
$112.32
+2.88%
Vol: 12.7M
Research Digest
Friday, May 1, 2026
Merck reports strong Q1 results with $16.29B revenue (+5% YoY) and multiple FDA approvals; stock up 4.09% on May 1
Merck reported Q1 2026 revenue of $16.29B (+5% growth), beating expectations driven by Keytruda ($8.0B sales, +12% growth) and WINREVAIR ($525M, +88% growth). The company received FDA approval for IDVYNSO and completed Hart-Scott-Rodino approval for Terns Pharmaceuticals acquisition ($53/share cash offer). Despite a reported operating loss due to acquisition charges, the company raised annual sales guidance. Stock moved up 4.09% on May 1 to $110.95. Among 25 analysts, 17 rate Buy with average 12-month target of $129.74.
Previous Market Intelligence
13 daysApr 30Merck Q1 earnings beat with Keytruda 12% growth and Terns Pharmaceuticals $53/share acquisition HSR approval; $1B Google Cloud AI partnershipPositive▶
Merck reported Q1 2026 total worldwide sales of $16.3B with 5% growth, beating estimates. Keytruda/Keytruda QLEX sales reached $8.0B with 12% growth while Winrevair hit $525M with 88% growth, demonstrating oncology strength. FDA approved IDVYNSO for HIV-1 treatment and NUMELVI for dogs. Terns Pharmaceuticals acquisition ($53/share cash offer) cleared Hart-Scott-Rodino review on April 23, bringing TERN-701 BCR::ABL1 inhibitor into hematology pipeline. Merck committed up to $1B investment with Google Cloud over years to build AI capabilities. Company raised 2026 sales guidance to $65.8-$67B range. Strong execution across oncology and strategic partnerships support positive outlook.
Apr 29Merck Q1 Earnings Ahead; Terns Pharma $6.7B Acquisition Approved; ZYN Momentum StrongPositive▶
Merck announces Q1 earnings on April 30, 2026 (tomorrow). Market expects -$1.51 EPS (likely one-time charges) and $15.85B revenue. Key catalyst: HSR approval for Terns Pharmaceuticals acquisition ($6.7B, closes Q2 2026). Recent FDA approvals for Idvynso (HIV) and ENFLONSIA (RSV infant prevention). Guggenheim reiterates Buy. 17 of 25 analysts rate Buy; consensus PT $136.48 implies 24% upside. Stock down 6.7% past month at $110.23, yet pharma segment up 10.8% avg. Drug partnership with Google Cloud (up to $1B).
Apr 16Merck announced Q1 2026 earnings release for April 30, granted FDA priority review for Ifinatamab Deruxtecan in small cell lung cancerNeutral▶
Merck will report Q1 2026 earnings on April 30 with expected diluted loss of $0.58 per share and host investor conference call at 9:00 a.m. ET. The company received FDA priority review on April 13 for Ifinatamab Deruxtecan for previously treated extensive-stage small cell lung cancer patients. Merck initiated pivotal Phase 2b/3 trial on MK-8748 for age-related macular degeneration and gained European Commission approval for KEYTRUDA in ovarian cancer. The company faces growing scrutiny over Keytruda affordability and patent expiration risks, with acquisition of Terns Pharmaceuticals ($6.7 billion) aimed at mitigating oncology pipeline exposure. UBS raised price target to $145 from $130 on April 13.
Apr 15Merck initiates Phase 2b/3 trial for novel bispecific antibody MK-8748 targeting age-related macular degenerationPositive▶
Merck announced pivotal Phase 2b/3 trial for MK-8748 (Tiespectus), a bispecific Tie2 agonist/VEGF inhibitor for neovascular AMD. Company expanding oncology pipeline through $6.7 billion acquisition of Terns Pharmaceuticals. Q1 2026 earnings expected April 30 with consensus Buy rating and average target of $131.42.
Apr 14Merck commences $6.7B tender offer for Terns Pharmaceuticals to strengthen oncology pipelinePositive▶
Cash tender offer for Terns at $53/share (~$6.7B) initiated April 7. Bolstering oncology pipeline post-Keytruda patent expiration. Q1 earnings April 30.
Apr 13Merck reduces Terns Pharma offer by $1B; Q1 earnings call scheduled April 30Neutral▶
Merck reduced its tender offer for Terns Pharmaceuticals from $7.7B to $6.7B following updated leukemia trial data disclosure (April 7). Q1 2026 earnings call scheduled for April 30, 9 AM ET. Board declared $0.85 quarterly dividend. Initiated Phase 2b/3 trial for MK-8748 (neovascular AMD treatment).
Apr 10Merck lowers Terns acquisition price after clinical data revision; Guggenheim maintains Buy rating.Neutral▶
Merck's $6.7B Terns Pharmaceuticals acquisition saw per-share price reduced to $53 after updated Phase 1 clinical data showed lower major molecular response rates. Announced Phase 2b/3 trial start for MK-8748. Guggenheim reiterated Buy with $140 price target. Q1 2026 earnings call scheduled April 30. Experimental HIV prevention pill could cost under $5/patient yearly.
Apr 9Merck Agrees to Acquire Terns Pharmaceuticals for $6.7 BillionPositive▶
Merck announced a $6.7 billion acquisition of Terns Pharmaceuticals to expand its hematology and oncology pipeline, with TERN-701 as a potential best-in-class oral treatment for chronic myeloid leukemia. The deal represents a 31-42% premium over pre-announcement prices. JPMorgan raised its price target to $135 from $125, and 19 analysts recommend buying the stock. The transaction strengthens Merck expansion in early-stage cancer portfolio amid strong Phase 3 pipeline progress.
Apr 8Merck launches $6.7B tender offer for Terns Pharmaceuticals to secure oral leukemia treatment.Neutral▶
Merck announced tender offer to acquire Terns Pharmaceuticals for $6.7 billion to secure oral leukemia treatment ahead of Keytruda patent expiration in 2028. Stock closed at $119.28 (-1.30%). JPMorgan raised price target to $135 from $125.
Apr 7Merck acquires Terns Pharmaceuticals for $6.7 billion to bolster hematology pipeline ahead of Keytruda loss of exclusivity.Positive▶
Merck announced acquisition of Terns Pharmaceuticals for $53/share in cash ($6.7B equity value) to expand hematology pipeline. Terns' TERN-701 is investigational oral allosteric BCR::ABL1 TKI in Phase 1/2 for certain CML patients. Company initiated pivotal Phase 2b/3 trial of MK-8748 (Tiespectus) for neovascular age-related macular degeneration. European Commission approved Keytruda plus paclitaxel ± bevacizumab for PD-L1 platinum-resistant recurrent ovarian carcinoma. Merck reached historic agreement with Trump administration on prescription medicine affordability and accessibility. Q2 2026 dividend announced at $0.85/share. Consensus Buy from 15 analysts targets $123.67 (2.32% upside). Stock at $120.87.
Apr 6Merck to acquire Terns Pharmaceuticals for $6.7B; expanding hematology with TERN-701.Positive▶
Merck acquired Terns at $53/share (~$6.7B equity) for TERN-701 in chronic myeloid leukemia. Initiated Phase 2b/3 trial for MK-8748 (eye disease). Government agreement reached on drug pricing and accessibility. Pipeline-positive M&A.
Apr 3Merck to acquire Terns Pharmaceuticals for $6.7 billion to expand hematology pipeline with novel CML treatment.Positive▶
Merck announced its acquisition of Terns Pharmaceuticals for $53 per share in cash ($6.7 billion equity value), gaining TERN-701, a novel oral BCR-ABL1 tyrosine kinase inhibitor for chronic myeloid leukemia. The European Commission also approved Merck's Keytruda combination for platinum-resistant ovarian cancer. The company reorganized its Human Health business into Oncology and Specialty/Pharma units. Recent stock trading has been between $119.25-$121.65.
Apr 1Merck completes $6.7B acquisition of Terns Pharmaceuticals for investigational oral leukemia treatment ahead of Keytruda patent cliff in 2028.Positive▶
Merck announced the acquisition of Terns Pharmaceuticals for $53 per share in cash, totaling approximately $6.7B equity value, acquiring TERN-701, an investigational oral allosteric BCR::ABL tyrosine kinase inhibitor for chronic myeloid leukemia. The board declared a quarterly dividend of $0.85 per share for Q2 2026, payable April 7, 2026. Tempus AI announced a strategic collaboration with Merck for AI-driven precision medicine.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| LLYELI | $964.50 | +3.20% | +0.8% | 22.2x | 0.50 | $834.9B |
| JNJJOHNSON | $227.78 | -0.90% | -4.6% | 18.1x | 0.33 | $553.3B |
| MRKMERCK | $112.32 | +2.88% | -9.7% | 11.2x | 0.28 | $269.7B |
| PFEPFIZER | $26.37 | -1.25% | -4.1% | 9.5x | 0.39 | $151.9B |
| BMYBRISTOL | $58.19 | -3.97% | +2.1% | 9.9x | 0.27 | $123.7B |
| ZTSZOETIS | $114.35 | -0.54% | -2.8% | 15.2x | 0.97 | $48.5B |
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