Merck announced on February 4, 2025, a pause in shipments of its Gardasil vaccine to China through at least mid-year, citing continued weak demand. This decision is expected to negatively impact the company's 2025 revenue outlook.
Despite this headwind, Merck posted a strong fourth-quarter net income of $3.74 billion, or $1.48 per share, compared to a loss in the prior year. Adjusted earnings came in at $1.72 per share, beating analyst expectations of $1.61.
Fourth-quarter sales rose 6.8% to $15.62 billion, exceeding analyst estimates, boosted by a 21% rise in Keytruda sales to $7.84 billion. However, Gardasil sales fell 17% due to lower demand in China.
For 2025, Merck expects sales of $64.1 billion to $65.5 billion and adjusted earnings of $8.88 to $9.03 per share. Both forecasts fell below average analyst expectations of $67.07 billion for revenue and $9.13 for adjusted EPS, primarily due to the Gardasil situation in China.
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