Pfizer and Merck Beat Wall Street Expectations After Hiking Prices to Start
2026; Merck Touts Patent Abuse Strategy to Further Block Keytruda Competition





 



BIG PHARMA EARNINGS WATCH: PFIZER AND MERCK

Pfizer and Merck Beat Wall Street Expectations After Hiking Prices to Start
2026; Merck Touts Patent Abuse Strategy to Further Block Keytruda Competition



This week, brand name drug manufacturers Pfizer and Merck both reported fourth
quarter earnings that exceeded Wall Street analysts’ expectations, boosting
revenue and sales outlooks for the year ahead. The portfolio boosting earnings
results follow the companies’ latest rounds of price hikes on brand name
prescription drugs — totaling 89 increases so far in 2026.



In a stark display of Big Pharma’s patent gaming playbook, Merck’s Chairman
and Chief Executive Officer, Robert Davis,highlighted
<[link removed]>
the brand name drug company’s product hopping strategy around blockbuster
cancer drug Keytruda, designed to further block and delay competition from more
affordable alternatives:



“As you look at the intellectual property situation for Keytruda…when the
original invention was filed for approval with the patent office, there were
actually four patents that made up the patent estate that was the original
innovation. One of those is the compound patent, which expires December 2028.
Two of those, one in method of making patent, actually is extended out to May
2029, and the second one, a method of use patent goes out to November 2029. And
so, as we looked at this, initially, we were conservative in our assumptions
and always based off the compound patent, always, though, with the intent that
we would defend the entire patent estate. I think what has evolved over time is
that this case law has emerged. Our confidence that we will be able to defend
those additional two patents has grown. And thus, there is a potential that you
are going to see protection actually make it through either May or November
2029… That strategy is underway.”



Keytruda provides a case study in the scale of Big Pharma’s patent abuse
greed. According toresearch
<[link removed]>
from I-MAK, Merck has already filed for 129 patent applications on Keytruda –
more than half of which were filed after the drug’s initial approval by the
U.S. Food and Drug Administration (FDA). The Big Pharma company has been
granted 53 patents for this one drug. I-MAK estimated that Americans would
spend at least $137 billion on Keytruda while the drug faced no competition due
to its extended exclusivity that now totals more than a decade – without
reflecting the added impact of the latest leg of the Big Pharma giant’s patent
strategy.



Merck first announced
<[link removed]>
in December 2022 that it would seek a new subcutaneous formulation of
Keytruda, along with accompanying new patents to bolster its existing,
significantly extended patent thicket. On top of Merck’s attempts to further
extend patent exclusivity on the current version of Keytruda, the drug maker
secured FDA approval of a new version of the drug, called Keytruda Qlex in
September 2025. Ascoverage
<[link removed]>
from The New York Times notes, Merck is following “a well-worn playbook…by
develop[ing] a new version of the drug, given as a shot under the skin,” that
will “keep Keytruda revenue flowing.” Merck expects “up to 40 percent of
Keytruda users” to shift to Keytruda Qlex. “Merck’s new shot will most likely
slow the adoption of cheaper copycat infusions, keeping prices higher for
longer at the expense of Americans.”



Get a full recap on Pfizer and Merck’s fourth quarter earnings fueled by
egregious pricing and anti-competitive practices below.



Pfizer

* Pfizer reported earnings that beat
<[link removed]> Wall Street
analyst’s estimates.
* The company also reported revenue
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that topped expectations and raised its profit guidance for the year.
* The Big Pharma company’s revenue rose to $17.56 billion
<[link removed]>, compared to
an expected $16.95 billion.
* Pfizer’s blood thinner drug, Eliquis, posted an eight percent
<[link removed]>
increase in revenue, while its bladder cancer treatment, Padcev, reported an
increase in revenue of15 percent
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.
Merck

* Merck also reported fourth quarter earnings and revenue that beat
<[link removed]> Wall Street
expectations.
* The company reported fourth quarter revenue of $16.4 billion
<[link removed]>
, reflecting a year-over-year increase offive percent
<[link removed]>.
* The strong earnings were driven by sales of Merck’s blockbuster cancer drug
Keytruda, which topped$8.37 billion
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quarter, rising seven percent from the same period a year ago.
The companies’ strong fourth quarter earnings come after they each engaged in
price hikes across their portfolios earlier this year.



Pfizer

* To start off 2026, Pfizer increased the price of 71 prescription drugs
<[link removed]> by an average of five percent.
* In 2025, Pfizer hiked prices on 90 prescription drugs
<[link removed]>.
* Pfizer hiked prices on more than 100 prescription drugs
<[link removed]> in 2024.
* In 2024, price hikes included a six percent
<[link removed]> increase on breast cancer drug
IBRANCE, aseven percent <[link removed]>
increase on cardiomyopathy drug Vyndaqel, and a4.9 percent
<[link removed]> increase on arthritis drug
Xeljanz.
* In 2023, Pfizer hiked drug prices on more than 100 medications
<[link removed]>, and in 2022, the company hiked
prices on more than130 prescriptions
<[link removed]> in their portfolio.
Merck

* This year, Merck hiked the price of 18 prescription drugs
<[link removed]> in its portfolio by an average
of 2.5 percent.
* Throughout 2025, Merck increased the cost of 31 of their prescription drugs
<[link removed]>.
* Merck hiked prices on 34 prescription products
<[link removed]> in its portfolio in January
2024, including price hikes on 20 drugs outpacing the rate of inflation.
* Merck kicked off 2023 by raising prices on more than 20 prescription drugs
<[link removed]>, including blockbuster diabetes
medicines Januvia and Janumet by 4.9 percent each.
* In 2022, Merck raised prices on 32 prescription drugs
<[link removed]>.
Read more on Sanofi’s fourth quarter earnings HERE
<[link removed]>.



Read more on expectation-beating fourth quarter earnings from Johnson & Johnson
HERE <[link removed]>.



And stay tuned as we continue to monitor fourth quarter earnings calls from
brand name drug companies this week.



Learn more about solutions to lower prescription drug prices and hold Big
Pharma accountableHERE <[link removed]>.



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