Merck's Q2 2025: Navigating Contradictions in Key Growth Strategies and Market Dynamics

KEYTRUDA patent expiration and long-term growth strategy, supply chain and tariff mitigation strategies, GARDASIL demand and sales strategy in China, GARDASIL sales and market strategy, WINREVAIR patient additions and market potential are the key contradictions discussed in Merck's latest 2025Q2 earnings call.



Revenue Trends and Growth Drivers:
- Merck & Co. reported revenue of $15.8 billion for Q2 2025, representing a 2% nominal decrease and excluding the impact of foreign exchange.
- The revenue was affected by a 9% decline in sales of GARDASIL in China, reducing global growth by 9 percentage points.

Oncology Segment Performance:
- Sales of KEYTRUDA increased 9% to $8 billion, driven by robust demand from metastatic indications and increased uptake in earlier-stage cancers.
- Growth in oncology was supported by usage in tumors predominantly affecting women and increased use of KEYTRUDA in combination with Padcev in certain advanced renal cell carcinoma patients.

New Product Launches and Market Penetration:
- New product launches, such as WINREVAIR and CAPVAXIVE, contributed significantly to growth, with WINREVAIR achieving $336 million in global sales.
- The strong performance of WINREVAIR is attributed to its impact on patients with pulmonary arterial hypertension and Merck's successful execution in a new disease area.

Animal Health Growth:
- The Animal Health segment experienced strong growth, with sales increasing 11%.
- Growth was driven by higher demand across species, the aqua portfolio acquired from Elanco, and improved supply in both the livestock and companion animal segments.