Tue, 04 Feb 2025

Merck shares plunge as company pauses Gardasil vaccine shipments in China, hurting 2025 outlook

Merck's full-year 2025 revenue guidance fell short of what some analysts were expecting, at a range of $64.1 billion to $65.6 billion.
Gardasil inventory in China remains elevated at above normal levels, with demand not recovered to the level expected due to softer consumer spending. The shipping pause will allow for a "more rapid reduction of excess inventory" and help support the financial position of Merck's commercialization partner Zhifei. Merck withdrew its $11 billion annual sales target for Gardasil given the uncertain timing of an economic recovery in China. However, the company believes there is still a path to reaching this revenue goal. In contrast, Keytruda, a cancer therapy developed by Merck, recorded $7.84 billion in revenue during the fourth quarter, up 19% from the year-earlier period. Analysts had expected sales of $7.63 billion.
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