Merck & Co. unveiled a major multiyear cost optimization initiative aimed at reducing annual expenses by $3 billion by the end of 2027. This strategy will redirect funds from mature assets toward investments in newly launched drugs and the expanding pipeline spanning oncology, cardiometabolic diseases, and immunology. The move follows disappointing revenue trends, including a 55% drop in Gardasil sales and impending biosimilar competition to Keytruda beginning in 2028. Despite the curtailments, Merck affirmed commitment to oncology growth and will reorganize R&D and commercial operations to support innovation-led expansion.