Merck 0.40 Gain on 170th Ranked 560M Volume Amid China Sales Slump and Global Growth Push

Merck (MRK) closed on August 8, 2025, with a 0.40% gain, trading at $80.59, despite a 35.8% drop in trading volume to $560 million, ranking 170th in market activity. The stock’s performance follows a mixed Q2 earnings report, with revenue declining 2% to $15.8 billion, driven by a $1.3 billion drop in Gardasil sales in China. Excluding China, global growth reached 7%, supported by oncology, animal health, and new product launches like WinRevair and Cavaxib.

Institutional investors increased stakes in Merck during Q1 2025, with Mitsubishi UFJ Asset Management boosting its position by 11.4% to 4.68 million shares, valued at $420 million. The company also announced a $0.81 quarterly dividend, yielding 4.1% annually, with a payout ratio of 50%. Analysts have mixed ratings, including a price target reduction to $98 by Morgan Stanley and a “buy” rating from Guggenheim at $115.

Merck’s Q2 earnings call highlighted challenges in China and Japan for Gardasil, with elevated inventories and soft demand. However, KEYTRUDA sales rose 9% to $8 billion, driven by metastatic and early-stage cancer adoption. The company outlined a $3 billion cost-optimization initiative to reinvest in high-growth areas like oncology and cardiopulmonary therapies, including the acquisition of Verona Pharma for COPD treatment. Regulatory milestones, including FDA decisions on subcutaneous pembrolizumab and WinRevair’s PAH label update, are expected in late 2025.

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