Merck (MRK): a combination of innovation, growth potential and stable dividends

Merck $MRK continues to be a strong player in the pharmaceutical industry, despite the impending loss of patent protection on its flagship product Keytruda in 2028. Its innovation, portfolio expansion and stable dividend policy make it an attractive investment for long-term investors.

Keytruda: A pillar of Merck's success

- Revenues in excess of $20 billion annually make Keytruda one of the most successful cancer drugs in the world.

- Approved for more than 30 indications in the US, it is particularly dominant in the treatment of non-small cell lung cancer (NSCLC).

- Loss of patent protection (2028):

- The emergence of competitors, such as Summit Therapeutics' ivonescimab and BioNTech's PM8002, is a key challenge, but their launch is distant.

- The development of a subcutaneous (SC) version of Keytruda provides new room for growth following patent loss.

Diversification and new products

Merck $MRK is actively working to expand its portfolio through acquisitions, partnerships and new drug development:

1. Oncology drugs:

- Partnership with China's LaNova Medicines to develop the bispecific antibody LM-299.

- Winrevair - a new drug for pulmonary arterial hypertension with expected sales of over $1 billion per year.

2. Weight loss market:

- Collaboration with Hansoh Pharma to develop an oral GLP-1 drug, competing with established players in the rapidly growing weight loss drug market.

3. Innovation:

- More than 90 projects in clinical development, demonstrating a strong R&D focus.

Dividend policy as a key benefit

- Current dividend yield: 3.4% - more than double the average of the S&P 500 index (1.27%).

- Dividend growth of 80% over the last 10 years demonstrates financial stability and commitment to shareholders.

-Stable cash flow and innovation allow Merck $MRK to continue increasing payouts in the future.

Merck's investment potential

-Resilience to revenue shortfalls: history shows that Merck $MRK can overcome the loss of patent protection on key products through innovation and portfolio expansion.

- Attractive entry price: the 2025 stock price decline presents an opportunity for long-term investors.

- Strong future:

-Strategic partnerships and innovation give Merck $MRK a clear roadmap beyond 2028.

- Portfolio diversification reduces the risk of dependence on a single product.

Merck $MRK is a combination of growth potential and stable income, making it an ideal choice for investors seeking long-term stability and returns. Despite the challenges associated with the loss of patents, the company has a strong market position and the means to continue to grow.