Merck & Company, Inc. Common Stock (new)

Keytruda exhibits strong pricing power anchored in clinical outcomes and breadth of labels, and the Qlex formulation adds convenience value.

However, IRA price setting begins to affect select Part D drugs and is expected to reach Part B in 2028; Merck notes Lenvima is selected for price setting in 2028 and expects Keytruda selection with price effective 2029, which, together with biosimilar competition, constrains long‑run pricing.

Vaccines like Gardasil historically carried pricing power, but China dynamics and local competition are near‑term offsets. Overall we score pricing power as solid but moderating into the LOE window.