Merck & Co. Inc. (NYSE: MRK) sold $8 billion in corporate bonds on December 1 2025, the largest of a series of debt issuances the company has planned for the year. The offering was priced at a coupon rate that reflects the current low‑interest‑rate environment and provides the company with a flexible source of long‑term capital.
The proceeds will be directed toward the company’s ongoing pipeline development and strategic acquisitions. In particular, the bond proceeds are earmarked to help finance a proposed acquisition of Cidara Therapeutics, a company that specializes in oncology therapeutics, and to support the integration of Verona Pharma, which Merck completed on October 7 2025 for approximately $10 billion. The Verona deal added Ohtuvayre, a treatment for chronic obstructive pulmonary disease, to Merck’s portfolio and represents a key expansion into cardio‑pulmonary markets.
Merck’s capital‑raising strategy is driven in part by the looming Keytruda patent cliff, which is set to expire in 2028. Keytruda has been a cornerstone of Merck’s oncology revenue, and the company is actively pursuing new blockbuster candidates and acquisitions to diversify its revenue base and mitigate the impact of biosimilar competition and potential price reductions under the Inflation Reduction Act. The bond issuance provides the financial flexibility needed to pursue these initiatives without compromising the company’s core R&D pipeline.
On December 2, 2025, Merck filed for a second bond offering of up to $7.5 billion, underscoring the company’s aggressive debt‑raising program. The two issuances together represent a significant infusion of capital that will support Merck’s long‑term growth strategy and maintain its ability to invest in high‑return opportunities.
CEO Robert M. Davis emphasized that the bond proceeds will “strengthen our financial position and enable us to accelerate the development of new therapies while pursuing strategic acquisitions that complement our existing portfolio.” He added that the company remains focused on delivering value to shareholders through disciplined capital allocation and continued investment in its pipeline.
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