Merck Narrows 2025 Sales Guidance as Keytruda Gains Outpace Gardasil Declines Shares Slide to 145th in 660M Volume

Merck (MRK) fell 0.82% on August 11, 2025, with a trading volume of $0.66 billion, ranking 145th in market activity. The company revised its 2025 sales guidance to $64.3-$65.3 billion, narrowing the range from the prior $64.1-$65.6 billion, while raising the lower end of its adjusted EPS outlook to $8.87-$8.97 from $8.82-$8.97. The updated guidance reflects a reduced foreign exchange impact of 0.5% on sales and 15 cents per share on EPS, down from previous estimates. Merck’s blockbuster Keytruda generated $7.96 billion in Q2 sales, up 9% year-over-year, though Gardasil sales declined sharply in China and Japan due to inventory management and weak demand.

Merck’s Animal Health segment posted 11% year-over-year revenue growth to $1.65 billion, driven by livestock products and the Elanco aqua business. New therapies like Winrevair and Capvaxive contributed $336 million and $129 million in sales, respectively, with both products showing strong sequential growth. The company also announced a $10 billion acquisition of Verona Pharma, expected to close in Q4 2025, adding COPD treatment Ohtuvayre to its portfolio. However, challenges persist, including Keytruda’s looming 2028 patent expiration and ongoing competitive pressures in the pulmonary arterial hypertension market.

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