Merck Cuts 2025 Revenue Forecast After Halting Gardasil Shipments to China

The pharmaceutical giant's decision reflects weak vaccine demand in China and ongoing inventory challenges, leading to a sharp decline in stock value.

Merck paused shipments of its HPV vaccine Gardasil to China through at least mid-2025, citing reduced demand and elevated inventory levels.
The company revised its 2025 revenue forecast to $64.1 billion to $65.6 billion, falling short of analysts' expectations of $67 billion or more.
Gardasil sales dropped 17% in the fourth quarter of 2024, with China—a key international market—experiencing significant declines due to economic challenges and regulatory pressures.
Merck's cancer drug Keytruda, the world's top-selling prescription medicine, saw strong growth with $7.84 billion in Q4 sales, offsetting some of the Gardasil shortfall.
Merck's stock fell over 10% following the announcement, reflecting investor concerns about the company's reliance on Gardasil and Keytruda for future growth.