Merck Slides to 91st in Trading Volume Amid $3 Billion Cost-Cutting Push and Mixed Earnings Update

On July 30, 2025, Merck (MRK) traded with a volume of 1.08 billion shares, a 52.05% decline from the previous day’s activity, ranking it 91st in trading volume. The stock closed down 1.06%, reflecting mixed investor sentiment amid strategic shifts and earnings dynamics.

Merck unveiled a multi-year cost-cutting initiative targeting $3 billion in annual savings by 2027. The restructuring involves reducing administrative, sales, and R&D roles, alongside shrinking its global real estate footprint. Proceeds will reinvest into high-growth pipeline areas, aiming to diversify revenue beyond Keytruda, which accounts for 50% of pharmaceutical sales. This initiative aligns with the approaching 2028 U.S. patent expiration for Keytruda, a critical juncture for the company’s revenue stability.

Recent M&A activity, including a $10 billion acquisition of Verona Pharma and partnerships with Chinese biotechs, underscores Merck’s efforts to bolster its pipeline. New products like the 21-valent pneumococcal vaccine Capvaxive and PAH drug Winrevair are gaining traction, with Winrevair already surpassing $1 billion in cumulative net sales. However, Gardasil, Merck’s second-largest product, saw a 55% revenue drop in Q2 2025 due to reduced demand in China and timing of public-sector purchases.

Merck’s Q2 2025 earnings report highlighted mixed performance: adjusted EPS exceeded forecasts at $2.13, but total revenue of $15.8 billion fell short of expectations. The company revised its full-year guidance downward, reflecting ongoing challenges in maintaining growth. Analysts at Cantor Fitzgerald reiterated a Neutral rating, citing concerns over delayed pipeline updates and the need for accelerated business development to drive long-term value.

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