Merck announced a $3 billion annual cost reduction plan by 2027 to redirect investments into newly launched and pipeline drugs across oncology and cardiometabolic areas ahead of upcoming biosimilar competition to Keytruda. This organizational transformation includes possible layoffs, real estate consolidation, and optimization of manufacturing networks. Concurrently, the company has discontinued a mid-stage asset acquired in its Pandion Biotechnology deal due to lack of clinical benefit. Despite current revenue pressures, Merck aims for innovation-driven growth by reallocating resources and acquiring promising candidates such as Verona Pharma.