Merck: 'Strong Buy' Lipfendra FDA First And Continued Oncology Expansions

Merck & Co., Inc. maintains a Strong Buy rating, driven by robust oncology expansion and the launch of LIPFENDRA, the first oral PCSK9 inhibitor for hypercholesterolemia. The company's oncology pipeline advances with FDA acceptance of four regulatory filings, including ifinatamab deruxtecan, and strategic acquisitions like Terns to counter KEYTRUDA's 2028 patent expiry. LIPFENDRA targets statin-treated patients needing further LDL-C reduction, with peak sales potential estimated at $5 billion by 2034, strengthening MRK's cardiometabolic portfolio. Q1 2026 revenues grew 5% to $16.3B, led by Oncology and Animal Health, but risks remain around KEYTRUDA patent loss, new product launches, and regulatory outcomes.