JP Morgan 2026: Merck’s De-risking of Future Funding

Merck’s chairman and CEO Rob Davis took the stage at the 44^th annual JP Morgan Healthcare Conference in San Francisco to present a plan for the coming years and detail which programs have been successful for the company.¹ Following the presentation, Dr. Dean Li, president of Merck Research Laboratories, joined Davis on stage for a Q&A session.

As is the case with most major pharma companies, Merck is facing a period of change, whether it wants to or not. The looming patent cliff has dominated the conversation at this year’s conference, and Davis immediately discussed his view on Merck’s preparedness.

“I'm pleased to say we are in a moment where we're starting to see our transformation underway,” Davis said. “We've been executing on our strategy and we're now in a position where we are well positioned for success.”

He continued, “We have 80 phase three studies underway, we're commercially succeeding, and launching the first wave of the next 20 growth drivers. We're augmenting that through business development, and the success in progress we've had to date now puts us in a position where we see visibility to more than $70 billion of commercial opportunity as we look out to the mid-2030’s.

“Importantly,” he said, “over the next two years we're going to meaningfully and from a clinical perspective de-risk that opportunity. My confidence is high and it continues to grow.”

A key number for Merck in the coming years is $70 billion. This is the mid-2030s revenue opportunity from potential new growth drivers. Notably, this estimate has risen $20 billion since last year. It’s also about double of Keytruda’s consensus 2028 sales.

That $70 billion is attributed to 10 key programs:

• Winrevair
• Ohtuvayre
• Enlicitide decanoate
• MK-1406
• Islatravir based QW regimens
• Enflonsia
• MK-3000
• Ifinatamab deruxtecan
• Sacituzumab tirumotecan
• Tulisokibart

During the Q&A section, when asked about the important events that helped to de-risk that $70 billion, Davis explained, “We focused on 10 key products, which will make up 70% of the $70 billion by the end of 2027. They all have been meaningfully derisked. It's hard to pick which is your favorite, you know you don't want to tell your children which one you love the best. I love them all equally. For business development, obviously 2025 was a very busy year for the company.”

The discussion moved onto what deals Merck may be interested in and what parameters the company will use when investing its capital.

“If you look at where we are,” Davis said, “we have been very disciplined. Dean and I took over in 2021, and we've followed a very consistent pattern. It always begins with asking what is the science, it always comes down to the conviction of my scientific teams there behind the opportunity. What is the unmet need that we're addressing?”

Prior to the convention, Merck announced the completion of its acquisition of Cidara Therapeutics for $221.50-per-share.²

In a press release, Davis said, “The acquisition of Cidara strengthens and complements our expanding respiratory portfolio and exemplifies our business development strategy of investing where compelling science and value meet. CD388, a potentially first-in-class, long-acting antiviral with strain-agnostic properties, underscores that approach. We look forward to building on Cidara’s progress and further evaluating the potential of this candidate for the prevention of symptomatic influenza in certain individuals at high risk of complications.”

Merck also announced the initiation of Phase 3 trials for Calderasib, and oral KRAS G12C inhibitor.³ The trials are researching the effectiveness of the drug in combination with Keytruda QLEX in patients with advanced NSCLC.

In a press release, Dr. Gregory Lubiniecki, vice president of global clinical development at Merck Research Laboratories, said, “While outcomes for patients with NSCLC have significantly improved over the last decade, we know there is more work to do. KRAS is the most frequently mutated oncogene in cancer, and the KRAS G12C mutation occurs in approximately 4% to 14% of all patients with lung cancer globally. By pairing our oral calderasib candidate with subcutaneously administered KEYTRUDA QLEX in this trial, we will evaluate whether this chemotherapy-free combination that requires no intravenous access may help improve outcomes for patients with KRAS G12C-mutant NSCLC.”

Sources

1. 44th Annual J.P. Morgan Healthcare Conference. Merck. January 12, 2026. https://www.merck.com/events/44th-annual-j-p-morgan-healthcare-conference/
2. Merck to Complete Acquisition of Cidara Therapeutics. Merck. January 7, 2026. https://www.merck.com/news/merck-to-complete-acquisition-of-cidara-therapeutics/
3. Merck Initiates Phase 3 KANDLELIT-007 Trial Evaluating Calderasib (MK-1084), an Investigational Oral KRAS G12C Inhibitor, in Combination With KEYTRUDA QLEX™ (pembrolizumab and berahyaluronidase alfa-pmph) in Certain Patients With Advanced NSCLC. Merck. January 7, 2026. https://www.merck.com/news/merck-initiates-phase-3-kandlelit-007-trial-evaluating-calderasib-mk-1084-an-investigational-oral-kras-g12c-inhibitor-in-combination-with-keytruda-qlex-pembrolizumab-and-berahyaluronidas/