Merck keeps 'strong buy' rating with oncology pipeline growth and new drug approvals through 2026.

Merck maintains a 'strong buy' rating due to its proactive expansion in oncology to offset the KEYTRUDA patent expiration in 2028. The acquisition of Terns Pharmaceuticals adds TERN-701, a promising oral drug for chronic myeloid leukemia with multibillion-dollar potential and FDA Breakthrough Therapy status. Merck is also advancing the KEYTRUDA family with new formulations and combination therapies, aiming for approvals in bladder and renal cancers by 2026. Strong Q1 2026 revenues of $16.3 billion, including $8 billion from KEYTRUDA and significant growth in WINREVAIR, support confidence in Merck's pipeline execution.