Merck & Co. does not anticipate significant effects from the new US tariffs against Canada, Mexico and China, but it is facing a challenge with sales of the human papillomavirus (HPV) vaccine Gardasil, as the company withdrew its 2030 revenue target amid continuing demand issues in China and paused shipments to its commercialization partner there. Meanwhile, Merck expects a $400m impact from the Medicare Part D redesign under the Inflation Reduction Act.
The Rahway, NJ-headquartered drug maker announced its fourth quarter earnings on 4 February, reporting a 7% increase in quarterly revenue to $15.6bn compared with the comparable period of 2024 and a 7% increase in full-year revenue to $64.2bn
Key Takeaways
- Merck withdrew its $11bn 2030 sales target for Gardasil, a significant portion of which it had expected to come from China, amid an ongoing slump in sales in that country.
- Shipments of Gardasil to China are on pause so that Zhifei, its commercialization partner there, can reduce its inventory of the product
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