Merck & Co. announced on February 4, 2025, that its full-year 2025 revenue guidance is projected between $64.1 billion and $65.6 billion, falling short of Wall Street expectations. The pharmaceutical company has paused shipments of its Gardasil vaccine to China, which is expected to impact sales significantly.
- Merck's 2025 revenue guidance disappoints investors.
- Gardasil shipments to China paused until mid-2025.
- Merck shares dropped over 7% premarket.
- Keytruda sales growth offsets some losses.
- Januvia sales decline due to pricing and competition.
- Animal health division sales increased by 9%.
Merck’s recent revenue guidance indicates a decline from analysts’ expectations of $67.31 billion. The decision to halt Gardasil shipments to China, effective February 2025, is a critical factor influencing this outlook. Gardasil, a vaccine that protects against HPV-related cancers, is a significant revenue source, particularly in China, which accounts for a large portion of its international sales.
Key details include:
- Projected revenue for 2025: $64.1 billion to $65.6 billion.
- Analysts’ expectations: $67.31 billion.
- Gardasil sales expected to grow 2% to 4%, with no shipments to China.
Merck’s fourth-quarter results for 2024 showed a net income of $3.74 billion, or $1.48 per share, compared to a net loss of $1.23 billion in the same period the previous year. The company reported revenue of $15.62 billion, exceeding analyst expectations. Keytruda, Merck’s leading cancer therapy, generated $7.84 billion in sales, driven by increased demand for earlier-stage cancer treatments.
Despite the challenges with Gardasil, Merck remains optimistic about its business prospects. The company anticipates that Gardasil’s expanded approval for men in China may eventually increase its market share. Investors are expected to seek further clarification during the upcoming earnings call.
In summary, Merck’s revenue guidance for 2025 reflects challenges with Gardasil sales in China. The company’s overall financial performance remains strong, driven by its oncology products, but the pause in Gardasil shipments raises concerns for future revenue growth.
