Merck said on Monday that it will split its human-health operations into two separate divisions, a move designed to sharpen focus across its portfolio and ensure smoother launches of new medicines.
The move comes as the drugmaker seeks to prepare for mounting sales pressure later this decade, driven by the looming loss of exclusivity for its top-selling cancer drug Keytruda, which will also expose it to lower-cost copycat competition.
The drug accounts for nearly half of group sales and is due to lose US patent protection in 2028.
Two units, two strategic priorities
Under the new structure, one division will house Merck’s oncology business, including Keytruda and other cancer therapies.
The second unit, known as the specialty, pharma and infectious-diseases business, will oversee the rest of the company’s non-cancer portfolio.
That unit will include established products such as the HPV vaccine Gardasil and diabetes treatment Januvia, alongside newer growth drivers like Winrevair, a therapy for pulmonary arterial hypertension.
Merck is counting on these medicines, along with future launches, to deliver strong growth and help cushion the anticipated drop in oncology revenue later in the decade.
The reorganisation was first reported by The Wall Street Journal.
New leaders appointed
Merck named Brian Foard as president of the newly created specialty, pharma and infectious-diseases unit, effective March 2.
Foard, 52, joins from Sanofi, where he has worked since 2017 and most recently led the company’s specialty-care business.
Jannie Oosthuizen, 58, an internal Merck executive, will head the oncology division and also oversee the company’s non-US operations under the MSD brand.
She previously served as president of Merck’s U.S. human-health business.
Both executives will report directly to Chief Executive Robert Davis.
As part of the shake-up, Joseph Romanelli, who has led Merck’s international human-health business, will retire.
The company is also shifting Chirfi Guindo, formerly chief marketing officer for human health, into a new role as executive vice president of strategic access, policy and communications.
Focus on launches and pipeline growth
Merck said the changes are aimed at strengthening execution as it prepares more than 20 launches of new drugs or expanded uses for existing products in the coming years.
Among them is a new type of cholesterol pill that the company hopes will become a significant revenue contributor.
“We are sharpening our focus on delivering innovative medicines for patients and creating long-term value for our stakeholders,” Davis said in a statement.
The leadership overhaul follows better-than-expected fourth-quarter 2025 results, with Merck beating analysts’ forecasts for both revenue and earnings.
On its recent earnings call, management struck an upbeat tone on long-term growth prospects, helping to bolster investor confidence despite the Keytruda overhang.
Preparing for life after Keytruda
Merck has previously estimated that its current pipeline could generate more than $70 billion in potential non-risk-adjusted commercial opportunities by the mid-2030s.
Management has highlighted that this figure is more than double prior peak sales estimates for Keytruda and reflects a sharp upgrade from expectations just a year earlier.
The company’s phase III pipeline has nearly tripled since 2021, supported by internal research as well as acquisitions.
One of the most notable additions came through its 2025 purchase of Verona, which brought in Ohtuvayre, a first-in-class maintenance therapy for chronic obstructive pulmonary disease.
The drug generated $178 million in sales in the fourth quarter of 2025 and is being positioned as a multibillion-dollar opportunity.
As Merck reorganises its leadership and business lines, investors will be watching closely to see whether the company can translate its expanding pipeline and new structure into sustained growth once its flagship cancer drug faces generic competition.
The post Merck creates separate oncology arm ahead of Keytruda patent loss appeared first on Invezz