- Merck said it will reorganize its human health segment into two separate units.
- Merck named Jannie Oosthuizen executive vice president and president of Oncology and MSD International.
- The Specialty, Pharma & Infectious Diseases unit will be led by Brian Foard.
Merck & Co. Inc. (MRK) announced on Monday that it is overhauling the leadership structure of its flagship pharmaceutical division as the company prepares for looming revenue headwinds tied to its top-selling cancer therapy.
The Rahway, New Jersey-based drugmaker said it will reorganize its human health segment into two separate units in an effort to better position its portfolio for the years ahead.
Preparing For Keytruda Patent Expiration
One of the units will concentrate on Oncology business, while the other will house the specialty, pharma, and infectious diseases business.
According to the Wall Street Journal report, the restructuring comes as Merck braces for the loss of U.S. market exclusivity for Keytruda in 2028, a development expected to invite lower-priced competition and dent sales.
Merck stock traded over 1% higher in Monday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory, with message volume shifted to ‘low’ from ‘normal’ levels in 24 hours.
New Leadership To Drive Growth
To guide the oncology-focused arm, Merck named Jannie Oosthuizen executive vice president and president of Oncology and MSD International. The Specialty, Pharma & Infectious Diseases unit will be led by Brian Foard, who will join Merck effective March 2.
Building Beyond Keytruda
According to the report, Merck has spent heavily on acquisitions in recent years to bolster its pipeline and cushion the anticipated slowdown in Keytruda sales.
“As we advance our pipeline and drive commercial success across an increasingly diversified portfolio, including a growing pipeline across Specialty, Pharma & Infectious Diseases, we are sharpening our focus on delivering innovative medicines for patients and creating long‑term value for our stakeholders.”
-Robert M. Davis, Chairman and CEO, Merck
Merck said it currently has roughly 80 Phase 3 trials underway and anticipates launching more than 20 new growth drivers in the coming years, most of which it believes could achieve blockbuster status.
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