Merck reported on April 24, 2025, that its first-quarter adjusted profit rose 7%, but sales declined 2% compared to the prior year period, reaching $15.5 billion. This sales decline reflected a January decision to pause shipments of its Gardasil vaccine to China due to a downturn in demand.
The company also announced that it expects approximately $200 million in additional expenses in 2025 from tariffs implemented to date, primarily impacting cost of sales related to China. Despite these headwinds, Merck reaffirmed its full-year non-GAAP revenue guidance of $64.1 billion to $65.6 billion and non-GAAP EPS guidance of $8.82 to $8.97.
Merck is aggressively investing in U.S. manufacturing and adjusting its supply chain to mitigate potential future pharmaceutical tariffs. The mixed financial results and the significant tariff impact highlight ongoing challenges, even as the company maintains its full-year outlook.
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