Merck Wins FDA Nod for First Oral PCSK9; UNH Soars

Healthcare equities traded in a broader market decline, with S&P 500 futures down 1% as investors weighed falling bond yields against cooling housing data. The US 10-year Treasury yield slipped to 4.5% after softer inflation readings. Intuitive Surgical ($ISRG) appeared in broader market coverage as futures pointed lower.

Merck ($MRK) received FDA approval for Lipfendra (enlicitide), the first oral PCSK9 cholesterol-lowering drug, introducing an oral option for patients who have relied on injectable PCSK9 therapies. The approval expands Merck's presence in cardiovascular medicine as key products approach patent expirations, with $MRK trading around $127.5 after posting a 64.8% return over the past year and 92.2% over five years. Pfizer ($PFE) emerged as a contender in the $100 billion weight-loss market, though specific pipeline details were not disclosed. Johnson & Johnson ($JNJ) reported strong earnings results, with the company now operating more than 28 sources of blockbuster revenue. The standard cancer treatment landscape is evolving beyond chemotherapy plus immunotherapy combinations like Merck's Keytruda, with next-generation approaches pairing antibody-drug conjugates (ADCs) and bispecific antibodies being tested by Bristol Myers Squibb, AstraZeneca, Summit Therapeutics, Pfizer, Gilead Sciences, and Roche Holding.

AbbVie ($ABBV) completed its $10.9 billion acquisition of Apogee, with analysis suggesting no immediate threat to the company's dividend policy. Eli Lilly ($LLY) announced a $3.8 billion deal to acquire ATAI, with Cathie Wood describing the transaction as a well-deserved return for shareholders. Wood's ARKG fund sold 1.12 million ATAI shares last week but still held 3.19 million shares as of Friday, while separately loading up on $LLY stock, which has soared 1,600% over the past 10 years.

UnitedHealth Group ($UNH) beat Wall Street estimates on July 16, 2026, with the company beating earnings estimates by roughly 30%, prompting Truist, Oppenheimer, and KeyBanc to move price targets to $500. Oppenheimer stated that UnitedHealth handily beat expectations, with analysts seeing over 20% more room to run. However, the company's chief financial officer spent the earnings call making clear that the earnings beat should not be mistaken for a solved cost problem, sending a stark warning despite the strong quarterly results.

The FDA's approval of Merck's Lipfendra represents the first oral PCSK9 inhibitor cleared for market, marking a significant regulatory milestone in cardiovascular therapeutics. The oral formulation provides an alternative to the injectable PCSK9 therapies that have dominated the cholesterol-lowering market, potentially expanding patient access and adherence.

Xencor's XmAb819 and XmAb942 programs continue to advance, with interim data for XmAb942 expected by the end of 2026 and the company maintaining a cash runway of $542 million. The development pipeline across the oncology sector is shifting toward next-generation combinations of antibody-drug conjugates and bispecific antibodies, with multiple major pharmaceutical companies testing these approaches as potential successors to current immunotherapy standards.