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Beyond Keytruda: How Merck envisions innovation and growth after a spinout

Recent and future BD will help drive Merck's innovation, while slower-growing businesses are headed for a new entity

As Merck becomes the latest large pharma to split in two, separating its key growth drivers and innovative programs from its slower-growing businesses, the slimmed-down innovative company will rely on the fruits of recent and future deals to stem its reliance on Keytruda.

Merck & Co. Inc. (NYSE:MRK) said Wednesday it will spin out its women’s health business, its legacy brands and its biosimilars into an as-yet-unnamed stand-alone publicly traded company. Merck expects the spinout to account for $6-$6.5 billion in revenue during 2021, with the separation due to be complete by 1H21. Low single-digit annual revenue growth would follow.

Remaining within Merck will be

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