INVO Fertility Shares Plunge 7.41% to Record Low as Merck Pricing Deal Under TrumpRX Threatens Business Model

INVO Fertility (IVF) shares plummeted 7.41% intraday, hitting a record low on October 22, 2025. The sharp decline followed the U.S. government’s announcement of a pharmaceutical pricing agreement with Merck KGaA, which will significantly reduce the cost of in vitro fertilization (IVF) medications. Under the deal, Merck’s key IVF drugs—including Gonal-f, Ovidrel, and Cetrotide—will be discounted by approximately $2,200 per treatment cycle starting in early 2026.

The agreement, part of the Trump administration’s TrumpRX initiative, aims to enhance affordability and accessibility for patients. However, it poses a direct threat to INVO Fertility’s business model. By offering discounted alternatives, Merck may capture a larger share of the IVF market, reducing patient demand for INVO’s services. Additionally, the administration’s plans to expand fertility care through supplemental insurance and employer-sponsored coverage could further intensify competition, pressuring the company’s market share and pricing power.

While recent financial data from July 2025 highlights underlying vulnerabilities, these factors may amplify the stock’s decline. The company executed a 1:3 reverse stock split in July to address liquidity concerns, but its Q2 2025 earnings report revealed a $6.5 million revenue drop. A debt-to-equity ratio of 2.39 and $28 million in liabilities underscore liquidity risks, raising questions about its ability to withstand prolonged competitive pressures.

Investors are closely watching INVO Fertility’s strategic responses to these challenges. The stock’s trajectory will likely depend on its capacity to innovate or implement cost-cutting measures in a sector increasingly shaped by affordability-driven policies. The TrumpRX initiative’s implementation and its impact on patient behavior will be critical indicators for the company’s future performance.