Merck Shares Dip Amid Gardasil Supply Halt in China but Keytruda Sales Shine

Merck & Co. (MRK) recently faced a significant challenge in the Chinese market, as it announced a temporary halt to its supply of Gardasil, the HPV vaccine, until mid-2025. This decision was primarily driven by a notable decrease in demand for HPV vaccines in China, which starkly contrasted with previous sales projections. The news sent ripples through the market, with Merck's shares experiencing a downturn.

The Gardasil vaccine, which received approval from the National Medical Products Administration for broader use, including in males aged 9 to 26, saw a substantial decline in its sales trajectory starting from the second quarter of 2024. This decline, marked by a 17% year-over-year decrease in the fourth quarter sales figures to $15.5 billion, underscored the challenges Merck is facing in maintaining its growth momentum in the region.

Despite the setbacks in the HPV vaccine segment, Merck reported that its oncology drug Keytruda continued to show robust sales growth, which helped offset some of the losses. In the fourth quarter, sales of Keytruda surpassed $78 billion, underlining its pivotal role in Merck's portfolio. The company projected that its total revenue for 2025 would range between $641 billion and $656 billion.

Looking ahead, Merck's future growth strategy will likely focus on revitalizing demand for its HPV vaccines in China while leveraging its strong oncology portfolio to sustain overall revenue growth. The situation highlights the complexities and regional variances in the global healthcare demand landscape, requiring pharmaceutical companies like Merck to adopt adaptable strategies to navigate shifting market dynamics.