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 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 to research 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 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. As coverage 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 Wall Street analyst’s estimates.
- The company also reported revenue that topped expectations and raised its profit guidance for the year.
- The Big Pharma company’s revenue rose to $17.56 billion, compared to an expected $16.95 billion.
- Pfizer’s blood thinner drug, Eliquis, posted an eight percent increase in revenue, while its bladder cancer treatment, Padcev, reported an increase in revenue of 15 percent.
Merck
- Merck also reported fourth quarter earnings and revenue that beat Wall Street expectations.
- The company reported fourth quarter revenue of $16.4 billion, reflecting a year-over-year increase of five percent.
- The strong earnings were driven by sales of Merck’s blockbuster cancer drug Keytruda, which topped $8.37 billion for the 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
Merck
Read more on Sanofi’s fourth quarter earnings HERE.
Read more on expectation-beating fourth quarter earnings from Johnson & Johnson HERE.
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 accountable HERE.
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