Merck creates standalone oncology unit
- Merck said on February 23 it will split its Human Health business into standalone oncology and non-oncology units, reshaping leadership before Keytruda’s patent cliff. - Jannie Oosthuizen will run oncology, while Sanofi executive Brian Foard joins March 2 to lead the other unit; Keytruda made $30 billion in 2025. - The split comes before U.S. Keytruda exclusivity ends in 2028. (merck.com)
Merck is splitting its main drug business in two, creating a standalone oncology unit centered on Keytruda. (merck.com) The company said on February 23 that its Human Health division will be reorganized into an Oncology Business Unit and a Specialty, Pharma & Infectious Diseases Business Unit. (merck.com) Jannie Oosthuizen, who had been running Merck Human Health U.S., was named executive vice president and president of oncology and MSD International. Brian Foard, previously head of specialty care at Sanofi, will join Merck on March 2 to lead the non-oncology unit. (merck.com) The move separates Merck’s biggest cancer franchise from the rest of its medicines and vaccines as the company prepares for Keytruda to lose U.S. patent protection in 2028. (biopharmadive.com) (cnbc.com) Keytruda generated more than $30 billion in 2025 and accounted for nearly half of Merck’s total revenue, making the drugmaker unusually exposed to one product. (cnbc.com) Merck said the new structure is meant to support launches across a broader portfolio, not a breakup of the company. The company is running about 80 Phase 3 studies and says it expects more than 20 new growth drivers over the next several years. (merck.com) (biopharmadive.com) Outside analysts read the reorganization as a patent-cliff response. Citi analysts said the split makes it easier to distinguish Merck’s mature oncology business from newer assets, while Novare Capital’s James Harlow told CNBC it could give Merck more flexibility for a future separation. (cnbc.com) Merck has used deals as part of that diversification push, and CNBC reported it spent roughly $10 billion last year on Cidara Therapeutics and Verona Pharma transactions to broaden its portfolio. (cnbc.com) The company has done a major separation before: in 2021, it spun off its women’s health and biosimilars business into Organon. This time, Merck said the change affects Human Health, not its animal health division. (cnbc.com) The immediate test is whether Merck can turn that new structure into enough new launches before 2028 to soften Keytruda’s drop-off. (merck.com) (biopharmadive.com)
