Merck & Co. advanced 1.8% on Friday, closing at $121.93 and notching its seventh consecutive daily gain. The stock finished less than half a percent below its 52-week high, outperforming Johnson & Johnson though trailing moves by peers Pfizer and Eli Lilly. Trading volume reached approximately 13 million shares, below the 50-day average.
Insider Transaction Filed
Regulatory filings revealed that Richard R. DeLuca, Executive Vice President and head of Merck's Animal Health division, sold 37,685 shares on February 6 at a weighted average price of $120.92 per share. The sales occurred at prices ranging from $120.74 to $121.31. Following the transactions, DeLuca retains direct ownership of over 160,000 shares.
2026 Outlook and Pipeline in Focus
Investors are assessing the company's recently updated 2026 guidance, which projects sales between $65.5 billion and $67.0 billion and non-GAAP earnings per share of $5.00 to $5.15. Management highlighted a projected $2.5 billion headwind that year from patent expirations, generic competition, Medicare pricing negotiations, and declining demand for its COVID-19 antiviral Lagevrio.
Merck is emphasizing progress in its development pipeline. The company announced the FDA accepted a supplemental application for Winrevair, a pulmonary arterial hypertension treatment, with a regulatory decision date set for September 21, 2026. CEO Robert M. Davis stated the firm continues to "advance leading-edge science."
Analysts note the key investor debate centers on the transition from mature products to newer launches. The performance of blockbuster oncology drug Keytruda remains central to the bull-bear thesis. BMO Capital analyst Evan Seigerman characterized Merck's latest quarter as "a reasonable foundation" heading into 2026.
Near-term, traders are monitoring whether the stock can sustain its position above $120 and how it responds to broader market movements. The company's first-quarter earnings call is scheduled for April 30, where updates on demand, pricing, and spending will be closely watched.
