Merck & Co. Boston Consulting Group Matrix

Merck's Animal Health segment demonstrated robust growth in 2024, achieving sales of $5.9 billion, a 4% increase year-over-year, or 8% when currency fluctuations are excluded. This expansion was fueled by strong demand for both companion animal and livestock products.

Strategic acquisitions, including Elanco's aqua business, further bolstered the segment's performance. This consistent upward trajectory highlights Animal Health as a significant contributor to Merck's overall growth strategy.

Merck & Co. showcases several strong performers in its product portfolio, fitting the "Stars" category in a BCG Matrix analysis. Keytruda continues its dominance in oncology, with sales reaching $29.5 billion in 2024. Winrevair, a newer entrant for pulmonary hypertension, achieved $419 million in its launch year and is projected for significant growth. Vaxneuvance, a pneumococcal vaccine, demonstrated exceptional 106% year-over-year sales growth in Q1 2024, driven by pediatric demand. Welireg, a targeted cancer therapy, saw a remarkable 133% increase in sales to $509 million in 2024, bolstered by market expansion and new indications.

Bravecto, a flagship product for Merck Animal Health, generated an impressive $1.1 billion in sales in 2024, reflecting a solid 6% growth. This performance highlights its dominant position in the companion animal market, fueled by pet owners' ongoing preference for extended flea and tick protection.

The consistent and robust sales of Bravecto contribute significantly to Merck's Animal Health division, providing a dependable source of cash flow. Its established market share and sustained demand solidify its status as a cash cow within the company's portfolio.

Merck's portfolio features several established products that consistently generate significant revenue and cash flow, fitting the description of Cash Cows in the BCG Matrix. These products benefit from strong market positions and sustained demand, contributing reliably to the company's financial stability.

Key examples include Gardasil/Gardasil 9, the HPV vaccine, which generated $8.6 billion in sales in 2024, and the diabetes treatments Januvia and Janumet, which collectively brought in $5.2 billion in the same year. Bravecto from Merck Animal Health also stands out with $1.1 billion in 2024 sales, showcasing its dominance in the pet care market.

Furthermore, Lynparza, an oncology drug, achieved $1.311 billion in revenue for Merck in 2024, demonstrating its strong market presence. Prevymis, an antiviral for CMV, also contributes reliably to Merck's revenue through consistent demand in hospital settings.

Before the introduction of Winrevair, Merck's older cardiovascular portfolio likely occupied a position as a 'dog' in their BCG matrix. This segment would have been characterized by low market growth and potentially low market share for those mature products.

While Merck doesn't explicitly label specific older cardiovascular drugs as 'dogs,' their strategic emphasis on developing and launching innovative treatments like Winrevair suggests a deliberate move away from less competitive or less profitable legacy products. This shift is common in the pharmaceutical industry as newer, more effective therapies emerge.

These older cardiovascular drugs may have been experiencing declining sales due to factors such as increased generic competition, a shift in treatment guidelines favoring newer medications, or a reduced perceived clinical benefit compared to Merck's emerging pipeline. For instance, by mid-2024, the cardiovascular drug market continued to see innovation, with companies like Merck investing heavily in R&D for next-generation therapies, further highlighting the transition away from older, established treatments.

Merck's portfolio includes several products classified as Dogs in the BCG Matrix, representing areas with low market share and low growth potential. These are often legacy products or those whose marketing rights have been transferred.

Lagevrio, an antiviral for COVID-19, is now a Dog due to declining demand in a maturing market. Similarly, Simponi and Remicade, once key immunology products, were reclassified as Dogs following the return of marketing rights to Johnson & Johnson in 2024.

Older cardiovascular drugs, while not explicitly labeled, likely function as Dogs as Merck focuses on newer innovations like Winrevair. Products losing patent exclusivity without lifecycle management also fall into this category, experiencing significant revenue decline post-exclusivity.

Merck's divestment of non-core assets, such as its consumer health business sold in 2021 for $1.875 billion, also represents a strategic move to shed 'Dog' segments and reallocate resources.

Merck's M9140, an anti-CEACAM5 antibody-drug conjugate, is currently positioned as a Question Mark in the BCG matrix. Its advancement into Phase Ib clinical trials for colorectal cancer in 2024, with further expansion planned for 2025, signifies its early-stage development within a promising, high-growth oncology sector.

While the antibody-drug conjugate market is experiencing robust growth, M9140's current status as an early-stage pipeline asset means it has minimal market share. Significant future investment and successful clinical trial outcomes will be crucial for M9140 to transition from a Question Mark to a Star performer.

Merck & Co. is actively developing several assets that fall into the Question Mark category of the BCG matrix. These are typically products in early to mid-stage development with high market growth potential but currently low market share, requiring significant investment to determine their future success.

Subcutaneous Keytruda, for instance, is a prime example. While Keytruda itself is a cash cow, this new formulation is a question mark because it needs to establish its place in the market against the established intravenous version and potential biosimil competition, despite promising Phase 3 trial results in late 2024.

Similarly, MK-4082, an oral GLP-1 receptor agonist acquired in late 2024, enters a booming market valued at approximately $25 billion in 2023. Its success as a question mark depends on Merck's ability to gain traction against established players in the diabetes and weight management sectors.

M9140, an anti-CEACAM5 antibody-drug conjugate, is another question mark, currently in Phase Ib trials for colorectal cancer. The oncology sector is vast, exceeding $200 billion globally in 2024, but M9140 needs to prove its efficacy to capture market share.

M9466, a selective PARP1 inhibitor, also sits as a question mark. While it targets the growing DNA damage response inhibitor market within oncology, its development is in its early stages, with Phase Ib combination studies planned for 2025, highlighting its potential but also its inherent risks.

Lastly, Clesrovimab, an investigational RSV prevention antibody, is a question mark in an emerging, high-growth market. Despite FDA acceptance of its BLA in Q4 2024, its ultimate success hinges on regulatory approval and its competitive positioning against other RSV therapies.