Merck Cuts $3 Billion in Costs as Keytruda Reign Nears End (4)

Merck & Co. is slashing $3 billion from its annual spending as it braces for off-brand competition to its cancer drug Keytruda, the best-selling medicine in the world.

The drugmaker will cut administrative, sales and research jobs, and reduce its real estate holdings, the Rahway, New Jersey-based company said in a statement Tuesday. Merck expects the restructuring to be completed by the end of 2027, the year before Keytruda’s key patents expire and the drug faces US government price cuts.

The company said it plans to reinvest the savings into developing and launching new drugs. Merck shares were down as ...