Merck & Co. announced a comprehensive cost-saving initiative aiming to cut $3 billion annually by 2027, alongside a strategic shift focusing investment on newer product launches and pipeline assets. This comes as Keytruda faces impending biosimilar competition starting in 2028, and Gardasil sales decline due to challenges in China, Japan, and potential U.S. dosing changes. The company plans administrative, sales, and R&D reductions while hiring in growth areas. The strategy follows Merck's recent $10 billion acquisition of Verona Pharmaceuticals, illustrating a realignment toward high-potential oncology and other emerging therapies.