MERCK: SURVIVING THE KEYTRUDA CLIFF

CEO Strategic Memo

June 2030 | CEO Edition

Keytruda revenue is declining faster than expected. We need to:

1. Maximize Keytruda revenue through combination therapies and new indications (buy time)
2. Accelerate pipeline: Target 4-5 major drug approvals by 2033 (vs. historical 1-2)
3. Diversify through M&A: Acquire 2-3 biotech companies with promising Phase II data
4. Cost reduction: Target $1.5B annual savings by 2032

Financial target: Stabilize revenue at $50-52B by 2035 (down from $55B peak, but offset by margin management)

Timeline: Next 18 months are critical to demonstrate we can execute.