Merck & Company, Inc. Common Stock (new)

Merck’s moat rests on a mix of strong intangible assets, switching costs in oncology, efficient scale in vaccines and manufacturing, and growing modality breadth.

Intangible assets: 85/100. Keytruda is approved across many tumors and now has the FDA‑approved subcutaneous Keytruda Qlex across most solid tumor indications, plus EU approval of an SC route, reinforcing brand equity and life‑cycle protection.

Patents still guard many assets, though Keytruda composition of matter will face U.S. expiry enabling biosimilars by late 2028 to 2029. Switching costs: 75/100. In cancer, entrenched regimens, diagnostics, and multidisciplinary practice patterns create meaningful but not insurmountable switching costs; Qlex’s convenience should help.

Cost advantage and efficient scale: 70/100. Global manufacturing, vaccine know‑how and commercial infrastructure provide scale economies and barriers, evidenced by sustained gross margins and rapid, multi‑indication launches. Network effects: 20/100. Pharma generally lacks classic network effects.

Weighted overall moat score reflects heavier weight on intangible assets and switching costs given oncology leadership and vaccines manufacturing depth, offset by the finite patent clock on Keytruda.