Merck posts $9B Cidara charge, adds $6.7B Terns deal; new U.S. pricing pact caps launches

Filed May 4, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 2, 2025 · ~2 min read

Key Changes

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  Completed $9.2B Cidara acquisition for influenza candidate MK-1406 (Phase 3), resulting in $9.0B R&D charge ($3.62/share) and Q1 non-GAAP loss of $(1.28)/share. Pending $6.7B Terns acquisition for oncology asset TERN-701 will add $5.8B charge ($2.35/share) at May close.

  MD&A: Business Development verify on EDGAR →
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  Three-year most-favored-nation pricing agreement with U.S. government requires direct-to-patient programs for Januvia/Janumet, Medicaid discounts, MFN pricing for new launches, and foreign revenue-sharing. IRA-negotiated Januvia price now in effect; Keytruda expected selected for 2029 price-setting.

  MD&A: Pricing & Regulation verify on EDGAR →
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  Gardasil/Gardasil 9 sales declined 19% as China shipment suspension continues; revised supply contract with Zhifei may allow late-2026 resumption but revenue expected immaterial. CDC immunization schedule changes stayed by federal court pending appeal.

  MD&A: Vaccine Sales verify on EDGAR →