Merck & Co. recently ended discussions to acquire oncology-focused Revolution Medicines in a deal that analysts had speculated could value RevMed at approximately $30 billion. The Wall Street Journal first reported the breakdown, citing unnamed sources. Merck’s interest in Revolution—developer of a KRAS inhibitor in late‐stage trials—had been seen as a strategic move to bolster its oncology pipeline, particularly following the success of Keytruda. With the talks now off the table, Merck may shift its M&A focus to smaller bio-ventures or in-licensing opportunities to maintain momentum in immuno‐oncology and targeted therapies.

During the third quarter, Cullen Frost Bankers reduced its Merck position by 7.0%, selling 17,082 shares and ending the period with 225,581 shares valued at $18.93 million. In contrast, Charles Schwab Investment Management increased its stake by 9.4%, adding 4.64 million shares to reach 53.87 million shares (worth $4.26 billion). New positions were established by DLD Asset Management and Norges Bank, each investing roughly $2.89 billion and $2.86 billion, respectively. Franklin Resources expanded its holdings by 23.5% to 27.03 million shares ($2.14 billion), while Fisher Asset Management added 567,900 shares, a 2.3% increase to 25.01 million shares ($1.98 billion). Hedge funds and institutions now control approximately 76.1% of Merck’s outstanding shares.

In its latest quarter, Merck reported adjusted EPS of $1.94, falling short of the consensus estimate of $2.08, driven by higher R&D expenses tied to clinical development programs. The company achieved a 29.6% net margin and a 44.5% return on equity. On the capital return front, Merck increased its quarterly dividend from $0.81 to $0.85 per share, reflecting a 4.9% payout rise and bringing the annualized dividend to $3.40, or a 3.1% yield. The dividend payout ratio stands at 44.9%, underscoring Merck’s commitment to returning cash to shareholders even as it invests heavily in pipeline expansion.