Merck Shares Fall on Weak 2025 Guidance

Merck's stock experienced a significant decline, dropping over 8% in pre-market trading, following a disappointing 2025 sales forecast attributed to a temporary halt in Gardasil vaccine shipments to China amid inventory issues and reduced demand. Despite reporting a 7% increase in fourth-quarter revenue to $15.6 billion, which exceeded expectations, the company's 2025 revenue projection of $64.1-$65.6 billion fell short of the anticipated $67 billion, leading to investor concerns. The pause in Gardasil shipments, a key product for Merck, is expected to continue until mid-year, reflecting broader economic challenges and a trade war between the U.S. and China. Additionally, Merck's adjusted earnings per share for the quarter were $1.72, surpassing analyst estimates, yet the company's full-year guidance remains conservative compared to market expectations. Concerns over Merck's product pipeline and competition have been highlighted by analysts, despite the continuing success of its cancer drug Keytruda. The company's strategic focus and future earnings potential remain under scrutiny following the recent earnings announcement.