Merck & Co. Signs on the ground of the New York Stock Exchange (NYSE) in New York, the United States, on Tuesday, April 8, 2025.
Michael Nagil Bloomberg Gety pictures
Merk She said on Tuesday that she will reduce $ 3 billion of costs by the end of 2027 to completely invest them to support the launch of new products and drug pipeline.
This multi -year voltage comes at a time when Merck is preparing to compensate for revenue losses from the end of the coming patent for the innocence of the coming cancer drugs in 2028. It also comes at a time when they prepare drug makers for President Donald Trump Pharmaceutical definitions imported to the United States, Which prompted Merck and other companies to invest billions of dollars to enhance the effects of their feet in the United States
The drug giant shares decreased by almost 3 % in the pre -market trade on Tuesday.
“Today, we have announced a multi -year improvement initiative that would redirect investment and resources from more mature areas in our business to a set of new growth programs of new growth drivers, enable our portfolio transfer, and push the next semester of the productive growth of innovation,” said Rob Davis, CEO of Merck.
He added that his confidence in Merck’s ability to move in the loss of Keytruda in exclusive is increasing with every launch of a new product, data and commercial deal readings. Davis said that he sees the expiration of patents “more than a hill more than one shear, and I am sure of our ability to grow in the long run.”
As part of the effort, Merck agreed in July a new restructuring program that would eliminate some administrative positions, sales, research and development. But the company will continue to employ employees in new roles through the areas of growth in its business. MERCK will also reduce global real estate imprint and continue to return its manufacturing network.
Merck expects that the procedures will be generated under the restructuring program about $ 1.7 billion of annual cost savings, most of which will run by the end of 2027.
The company expects the pre -additional costs related to the restructuring program about 3 billion dollars in total. In the second quarter, Merck recorded a $ 649 million fee related to the program.
Also on Tuesday, Merck reported the revenues of the second quarter that came in Wall Street estimates. This was the first time that the scale was absent from expectations since April 2021.
While Keytruda sales grew during this period, MERCK continued to see a problem with China Gardasil sales, a vaccine that prevents cancer from HPV, the most sexual infection in the United States
In February, Merck announced a decision to stop Gardasil’s shipments to China starting from that month and the passage of at least in mid -2015. In prepared statements, financial manager Caroline Leesfield said that the company will not resume shipments to China until at least 2025, noting that stocks are still high and that the demand is still soft.
The company also narrowed its entire year. Merck now expects its modified profits to range between 8.87 dollars and $ 8.97 per share. This compares its previous expectations of $ 8.82 to $ 8.97 per share.
MERCK expects the year’s revenues to range between 64.3 billion dollars and 65.3 billion dollars, on both sides of its previous directives of 64.1 billion dollars to 65.6 billion dollars.
Here is what Merck told the second quarter compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Arrow’s profits: $ 2.13 modified. This number may not be similar to $ 2.01.
- profit: 15.81 billion dollars for 15.89 billion dollars expected
Merck said her guidelines include the estimated effect that was announced before 200 million dollars associated with the tariffs made so far. In April, the company said Expected tariff fees It mainly reflects the drawings between the United States and China, but it did not explain the pharmaceutical tariffs of the sector.
Expectations also include one -time fee related to the company’s licensing agreements with Hengui Pharma and Lanova, but not recently announced on Verona Pharma.
The company recorded a net income of $ 4.43 billion, or $ 1.76 per share, per quarter. This compares with the net income of $ 5.46 billion, or $ 2.14 per share during the year.
With the exception of acquisition and restructuring costs, Merck got $ 2.13 per share for the second quarter. This includes a 7 -cents fee for one share to close the licensing agreement with Hengrui Pharma.
Merck achieved $ 15.81 billion of revenue for a quarter, a decrease of 2 % from the same last period.
Pharmaceutical sales, animal health sales
The Merck’s Pharmaceutical unit, which has been developing a wide range of medicines, booked $ 14.05 billion of revenues during the second quarter. This fell 2 % of the same period in the previous year.
Keytruda recorded $ 7.96 billion in the quarter, an increase of only 9 % of the most important period.
The company said that this increase was driven by the increased absorption of Keytruda for the previous stage cancers and the strong demand for the medicine for metastatic cancer, which spread to other parts of the body. Analysts expected the drug to see $ 7.9 billion in sales, according to estimates of street street.
Gardasil achieved sales of $ 1.13 billion per quarter, a decrease of 55 % from the same last period due to the low demand in China. Street Street estimates said that analysts expected Gardasil to reserve sales of $ 1.33 billion.
The Chinese market is the majority of international revenues. Merck hopes that Gardyasil’s expanded approval will help men between the ages of 9 and 26 in China to increase the absorption of the vaccine.
Gardasil sales in the United States increased 2 % during the second quarter.
Meanwhile, rare and deadly lung sales, which are used to treat a rare fatal lung condition, rare sales, have been recorded for a quarter. Analysts expected the drug to bring 324.7 million dollars, according to street allergy estimates.
Merck’s Animal Health Department, which develops vaccines and medicines for dogs, cats and livestock, recorded approximately $ 1.65 billion in sales, an increase of 11 % of the same previous period. The company said that the highest demand for livestock and sales products from Elanco’s Aqua Business, which it acquired last year, led this growth.
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