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Merck: Hematology, HIV & Oncology—The Pipeline Power Play Behind Its Next Growth Wave!

Merck & Co., Inc. reported first-quarter 2026 revenues of $16.3 billion, reflecting a 5% increase year-over-year or 3% excluding foreign exchange effects. Growth was primarily driven by strength in Oncology, Animal Health, and new product launches. The KEYTRUDA family, a key oncology franchise, generated $8 billion in sales, up 8%, benefiting from strong demand in metastatic and early-stage cancers, particularly tumors prevalent in women and urothelial cancer. However, approximately $250 million of this growth was attributed to timing of wholesaler purchases, suggesting possible headwinds in subsequent quarters. The Animal Health segment exhibited 6% sales growth, supported by higher demand and pricing in livestock and companion animal products, including the recent introduction of NUMELVI for canine allergic dermatitis. Vaccines faced some challenges, as GARDASIL sales declined 22% due to reduced demand in China, Japan, and timing-related effects in the U.S., though pneumococcal vaccine CAPVAXIVE saw a 31% increase.