Merck’s Q2 revenue smashed expectations and they’ve raised their full-year forecast, fueled by strong performance from new drugs — but profit guidance took a hit due to big acquisition-related charges. While that may sound bad on paper, it’s actually part of a bold strategy: replacing aging blockbuster drugs like Keytruda and diabetes meds with next-gen therapies and expanding into animal health. Think of it as short-term pain for long-term gain — Merck is betting big on future growth while keeping the current engine roaring.
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