Merck shares fall on weak outlook, Gardasil China pause

(Sharecast News) - Merck shares fell in pre-market US trade after the drugmaker posted lower sales of its HPV vaccine Gardasil - with shipments to China paused - and signalled a weaker 2025 outlook. The company said it expects 2025 revenue in the range of $64.1bn - $65.6bn compared with average forecasts of $67.3bn. Earnings per share were estimated at $8.88 to $9.03 compared with an average analyst estimate of $9.03 a share.

Merck said the sales estimate range reflected the decision to halt shipments of Gardasil to China starting this month to at least the middle of the year. The vaccine prevents cancer from HPV, a sexually transmitted infection.

The company has blamed weaker demand for the treatment on China's struggling economy and the state's anti-bribery and anti-corruption drive.

Fourth-quarter net income swung to a profit of $3.74bn compared with a $1.23bn loss a year earlier.

Fourth-quarter revenue was boosted by a 21% rise to $7.84bn of the cancer drug Keytruda, which offset a 17% fall in Gardasil sales.

Total revenue in the quarter was $15.6bn, up from $14.6bn a year ago and just below forecasts of $15.5bn.

Reporting by Frank Prenesti for Sharecast.com