Merck & Co. revealed a sweeping initiative to cut costs by $3 billion annually by 2027, reallocating resources from mature products towards new drugs and experimental medicines. The effort aims to offset generic competition to Keytruda expected in 2028 and manage falling sales of Gardasil, particularly impacted by supply halts in China and altered vaccination recommendations in the U.S. CEO Rob Davis emphasized reinvestment in innovative pipelines including oncology and cardiometabolic therapies. The company has not disclosed staffing changes but plans to optimize real estate and manufacturing footprint to align with evolving business demands.