Merck Sheds $10 Billion as Bristol-Myers Study Dents Euphoria
- Bristol-Myers cancer drug cocktail would compete with Keytruda
- Both companies are set to announce earnings next week
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Positive results from a late-stage study of Bristol-Myers Squibb Co.’s combination therapy for lung cancer dented some of investors’ euphoria about Merck & Co.’s Keytruda heading into a closely watched earnings season.
Merck shares fell as much as 5.1%, the most in six weeks, wiping out more than $10 billion in market value. Merck’s product concentration has been a concern for some skeptics as Keytruda is expected to account for close to 40% of revenue by 2024. Competition from Bristol-Myers and Roche Holding Ag’s Tecentriq has been largely discounted until now.