Deutsche downgrades Merck ahead of Keytruda 2028 expiration

Deutsche Bank analyst James Shin downgraded Merck (MRK) to Hold from Buy with a price target of $105, down from $128. The firm believes the “real culprit” for Merck shares remaining under pressure is Keytruda’s 2028 patent expiration. Despite the company building out its pipeline, past precedence shows the Street is “very skeptical” when mega blockbusters face loss of exclusivity, the analyst tells investors in a research note. Deutsche points out that AbbVie (ABBV) shares became volatile in the lead up to Humira’s expiration. AbbVie “got a lot right, but it took a while for the Street to come around,” according to Deutsche Bank.