MRK: Pulmonology Survey Suggests Ohtuvayre Concerns May Be Overblown

Research evidence excerpt

MRK: Pulmonology Survey Suggests Ohtuvayre Concerns May Be Overblown

Equity Research

Company Update — May 11, 2026

Large Cap Pharmaceuticals

Merck & Co. Inc.

Pulmonology Survey Suggests Ohtuvayre Concerns May Be Overweight

Overblown Price Target: $145.00

Our Call Ticker MRK

Upside/(Downside) to Target 30.2%

We conducted a survey of 26 US pulmonologist in April 2026. Survey supports consensus

2028/29 Ohtuvayre numbers, as uptake is expected to rise. We think there could be Price (05/08/2026) $111.38

potential upside with broader community uptake. Reiterate Overweight. 52 Week Range $73.31 - 125.14

Market Cap (MM) $275,331

Why we did this survey. Investors appear concerned there could be downside risk to long- Enterprise Value (MM) $315,572

term Ohtuvayre numbers because the drug's benefit on top of triple therapy may not Average Daily Value (MM) $1,120

be very meaningful, and greater triple therapy use could be a commercial headwind. We Dividend Yield 3.1%

conducted this survey to better understand 1) how Ohtuvayre is currently used in clinic

and 2) how its use will change over time, as background triple therapy becomes more $ (Dec) Q1 Q2 Q3 Q4 FY

prevalent. EPS

2026E (1.28) E 2.13 E 2.26 E 1.98 E 5.09 E

>75% of respondents see Ohtuvyare's efficacy on top of triple therapy as meaningful, 2027E 2.04 E 2.23 E 2.58 E 2.35 E 9.20 E

with usage on top of triple therapy also expected to increase. Respondents expect

Source: Company Data, Wells Fargo Securities estimates, and Factset.

Ohtuvayre use on top of triple therapy to increase by factor of 1.5x (median) to 2.0x NA = Not Available, NC = No Change, NE = No Estimate

(mean) over the next 3 years. We note use of triple therapy is also expected to increase

from a median of 43% to 63% over the next 3 years. Mohit Bansal