MERCK SHARES Plunge as Company Pauses Gardasil Vaccine Shipments in China, Hurting 2025 Outlook

Merck on tuesday Issured Full-Year 2025 Revenue Guidance that Fell Short of Wall Street’s Expectations, as the Company Temporaryly Pauses Shipments of a KEY VACCINE INTO CINA.

Shares of Merck Closed 8% Lower on Tuesday.

The pharmaceutical giant anticipates 2025 sales of $ 64.1 billion to $ 65.6 billion, lower than the $ 67.31 billion that analysts surveyed by lseg hadpeted. In a release, the company said that sales range reflects a decision to halt shipments of gardasil into China beGinning in February and Going Through at Least Mid-2025.

Gardasil is a vaccine that prevents cancer from hpv, the most common sexually transmitted infection in the us investors have been foundsetled over the past year by Trouble with sales of that blockbuster shot in china, as the country makes up the Majority of the product’s International Revenue.

The low end of merck’s revidance assumes no further shipments in china, and less than $ 1 billion in sales at the high end.

MERCK CEO ROBERT DAVIS SAID on an earnings call that Gardasil Inventory in China “Remains Elevated at Above Normal Levels,” Noting that Demand for the Shot Has Not Recovered to the Level The Level the Comestation Expect CH as Softer Consumer Spending. The shipping pause will allow for a “more rapid reduction of inventory” and help support the financial position of its commercialization partner in China, Zhifi.

Davis said the company also hopes the shipping pause will help gardasil return to a “More Normal Market Dynamic,” Allowing underling demand for the shot to absorb zhifi’s inventory. It’s Unclear How Quickly Merck will be removed in inventory levels down, he noted.

Merck withdrew its $ 11 billion annual sales target for gardasil Given the “Uncertain Timing of An Economic Recovery in China,” The Company’s Cfo Caroline Litchfield Said During the Call on Tuesday. But she said the company believes there is still a “path” to that revenue goal.

Sales of the shot will likely be critical to merc on the offset losses from its top-) Top-Selling Cancer Therapy Keytruda, which will lose exclusivity in 2028. or men ages 9 to 26 in china will Eventally help boost uptake of the shot.

“We believe china stil represents a significant long-term options for gardasil giving the large number of females, and no male recent approval, that are not yet imunized, that are not invited. Well-positioned to maximize this potential for the long-term, “Davis said.

MERCK Expects Full-Year Adjusted Earnings of $ 8.88 to $ 9.03 per share, which is generally in line with what analysts was expected. The outlook reflects a charge of roughly 9 cents per share related to merck’s license agreement with private help drugmaker lanova.

Sales of KeytrudaOther Oncology Medicines and the company’s recently launched cardiovascular Treatment Helped Merck Beat Expectations for the Fourth Quarter of 2024.

Here’s what merck reported for the fourth questioner compared with what wall street was expecting, based on a survey of analysts by lseg:

• Earnings per share: $ 1.72 adjusted vs. $ 1.62 Expected
• Revenue: $ 15.62 billion vs. $ 15.49 billion expected

The company posted net income of $ 3.74 billion, or $ 1.48 per share, for the Quarter. That compares with a net loss of $ 1.23 billion, or 48 cents per share, during the year-aarlier period.

Excluding Acquisition and Restructuring Costs, MERCK EARNED $ 1.72 per share for the fourth Quarter. Both adjusted and nonadjusted earnings reflected a charge of 23 cents per share obesity pill From a chinese drugmaker.

MERCK Raked in $ 15.62 billion in Revenue for the Quarter, Up 7% from the same period a year ago.

Merck’s Type 2 Diabetes Treatment, Januvia, also Saw Saves Fall to $ 487 Million during the Quarter, Down 38% from the same period a year ago. The company said the decline was primarily due to lower pricing in the US, supply constraints in China and ongoing competition from cheaper cheaper generic drugs in International Markets.

That came below analysts’ estimate of $ 500 million for the period, according to streetaccount.

Januvia is one of 10 drugs that was subject to Medicare Drug Price NegotiationsA policy under the inflation Reduction Act that AIMS to make costly medicines more affordable for older americans. New negotiated pris for that first found of Drugs Go Into Effect in 2026.

Merck’s Animal Health Division, Which Develops Vaccines and Medicines for Dogs, Cats and Cattle, Posted Nearly $ 1.4 Billion in Sales, Up 9% From the Same Period a year ago. The company said higher pricing for products across the portfolio drave that increase.