Merck & Co., Inc. has released its financial results for Q2 2025, highlighting both growth in certain segments and declines in others.
Q2 2025 Financial Results
Merck & Co., Inc. reported total worldwide sales of $15.8 billion for Q2 2025, marking a 2% decrease from the same period in 2024. Despite this decline, specific areas, such as oncology and animal health, showed significant growth. Sales of KEYTRUDA, a leading oncology product, reached $8.0 billion, reflecting a 9% increase driven by strong global demand across various cancer indications. Conversely, sales of GARDASIL/GARDASIL 9 vaccines declined by 55%, primarily due to reduced demand in China and the aftermath of a national catch-up immunization program in Japan. The animal health division reported sales of $1.6 billion, an 11% increase attributed to higher demand for livestock products and the acquisition of the Elanco aqua business.
Outlook for the Rest of 2025
Looking ahead, Merck has narrowed its full-year 2025 sales expectations to between $64.3 billion and $65.3 billion. This adjustment reflects the company’s strategic focus on optimizing its portfolio and reinvesting in growth areas. The non-GAAP EPS guidance has been set between $8.87 and $8.97, accounting for a $0.15 per share negative impact from foreign exchange fluctuations. Merck’s guidance does not include the anticipated effects of its planned acquisition of Verona Pharma, expected to close in Q4 2025. This acquisition aims to bolster Merck’s cardio-pulmonary pipeline by adding Ohtuvayre, a novel treatment for chronic obstructive pulmonary disease (COPD).
Merck's Strategy Amid Changes
The company also announced a multiyear initiative to achieve approximately $3.0 billion in annual cost savings by the end of 2027, which will be reinvested into strategic growth areas. These initiatives are part of Merck’s broader strategy to maintain its position as a leader in the biopharmaceutical industry. The company continues to prioritize research and development, with significant investments in its pipeline and manufacturing capabilities.
Merck & Co., Inc. demonstrates a commitment to adapting its strategies amidst changing market dynamics, addressing both growth and accompanying challenges within its business.
