Merck & Co to spin off cancer unit ahead of Keytruda patent cliff

(Sharecast News) - US pharma group Merck & Co is reportedly set to spin off its oncology operations in an effort to keep its wider healthcare businesses immune from a forthcoming patent cliff for its blockbuster Keytruda drug. According to the Wall Street Journal, the firm is to split its healthcare business into two units: one housing its cancer portfolio and the other for non-cancer assets across the specialty, pharma and infectious-diseases categories.

The move is thought to be part of a diversification drive as copycat versions of immunotherapy treatment Keytruda come to the market from 2028.

The end of US patent protection is expected to result in a drop in sales of the best-selling prescription drug in the world, which generated $30bn for Merck in 2025 - equal to nearly half of the group's $65bn annual turnover.

The shake-up comes as Joseph Romanelli, currently the head of Merck's Human Health International division, plans to retire, the WSJ reported.

The new cancer business will be headed up by company exec Jannie Ossthuizien, who was most recently the president of the US human-health arm.

Merck & Co futures were up 1% at $123.50 by 1219 GMT in pre-market trading on Wall Street.