According to a report by The Wall Street Journal, Merck & Co. has formally ceased discussions to acquire cancer-drug developer Revolution Medicines. Earlier negotiations had valued the biotech at approximately $30 billion, reflecting Revolution’s promising pipeline in targeted oncology therapies. Merck’s decision to walk away follows an internal reassessment of strategic priorities and a desire to allocate capital toward advancing its own immuno-oncology franchise, including the blockbuster Keytruda program and late-stage clinical candidates in hematologic malignancies.

In its latest SEC filing, regional fiduciary Cullen Frost Bankers reduced its holdings in Merck by 7.0%, selling 17,082 shares to bring its total to 225,581 shares worth about $18.9 million. This contrasts with substantial increases by several large asset managers during the second quarter: Charles Schwab Investment Management added 4.64 million shares to reach a 53.87 million-share position, valued at $4.26 billion; Franklin Resources boosted its stake by 23.5%, acquiring 5.14 million additional shares; and DLD Asset Management and Norges Bank each initiated new positions exceeding $2.8 billion in value. Overall, institutional investors now control roughly 76% of Merck’s outstanding equity.

Merck recently declared a quarterly dividend of $0.85 per share, up from $0.81, marking a 5% increase and establishing an annualized payout of $3.40, which represents a 44.9% dividend payout ratio. The company’s most recent quarterly earnings report showed earnings per share of $1.94, missing analysts’ consensus by $0.14, while achieving a net margin of 29.6% and a return on equity of 44.5%. Looking ahead, research consensus forecasts annual EPS of approximately $9.01 for the current fiscal year, as Merck balances investment in its oncology pipeline with managing cost pressures across its broad portfolio.