Merck downgraded to Neutral from Buy at Citi

Citi downgraded Merck (MRK) to Neutral from Buy with a price target of $84, down from $115. While the company’s growth headwinds from the Keytruda loss of exclusivity in 2028 are “well-appreciated,” offsets from Merck’s pipeline progression and new launches “are taking time,” the analyst tells investors in a research note. The firm says that despite a strong balance sheet, Merck seems to have less urgency towards business development to offset the 10%-20% Keytruda sales declines post the loss of exclusivity. The “clock is ticking” for the company’s pipeline assets to commercially scale, contends Citi.