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Merk On Thursday, reduced its full year’s profit guidance, citing $ 200 million at an estimated cost for tariffs and a recent fee associated with a deal.
The company now hopes that its 2025 adjusted earnings will come between $ 8.82 and $ 8.97, slightly below the previous perspective of $ 8.88 to $ 8.88 per share.
The company said the expected tariff charge mainly reflects levy between the US and China, and Canada and Mexico. Merc has created a strong presence in China, which is considered one of the most important markets of the company and is home to some partners and home manufacturing and research and development sites.
Merc said that the new approach is not responsible for the President Donald TrumpTariffs employed on pharmaceuticals imported in the US, which are inspired by some drug manufacturers Speak your American manufacturing Footprint.
This includes Merc, which has invested $ 12 billion in American manufacturing and research and development and expects to put more than $ 9 billion in the country by the end of 2028.
On an earning call on Thursday, Merc CEO Rob Davis said that “As you look at 2025, we are well deployed with inventory that we are able to reduce anything that we can see in the short -term.” He said that medium to long -term, “We already begin to identify that we can either reproduce our own manufacturing,” who can change the priorities of existing plants, or bring out external manufacturing into “bridge gaps” and further create internal production.
He said, “In many ways, we are aligned with what the administration wants to do, and feels that we are in a situation that he is able to do quite effectively,” he said.
The new guidance includes a one -time fee of about 6 cents per share related to the company’s license agreement with Hengrui Pharma, which is this Announced in March.
Merc reiterated its full-year sales between $ 64.1 billion and $ 65.6 billion.
In addition, on Thursday, the drug manufacturer reported the first-spectacle revenue and benefits that defeat expectations, as it said that he saw strength in his oncology portfolio and animal health products.
Merc also cited “rapidly meaningful” sales contribution from the recently launched drugs. They are vinivier, used to treat a rare, malignant lung condition and capvaxive, a vaccine designed to protect adults from bacteria known as pneumococcus that can cause serious diseases and lung infections.
The sale of those drugs would probably be important for the merc’s efforts to compensate for the damage to its top-bound cancer therapy of cancer therapy, which will lose uniqueness in 2028.
What did Merc here tell for the first quarter what was expected by LSEG based on a survey of analysts compared to Wall Street:
- earnings per share: $ 2.22 adjusted vs $ 2.14 expected
- Income: $ 15.53 billion vs $ 15.31 billion is expected
The company posted a net income of $ 5.08 billion for the quarter, or $ 2.01 per share. It compares with a net income of $ 4.76 billion or $ 1.87 per share during the year-east period.
Except for the acquisition and restructuring costs, Merc earned $ 2.22 per share for the first quarter.
The Merc recorded revenue in revenue for the quarter to $ 15.53 billion, 2% below the same period a year ago.
Pharmaceutical, Animal Health Sales
The pharmaceutical unit of the Merc, which develops a wide range of drugs, was booked a revenue of $ 13.64 billion during the first trimester. It is 3% below the same period a year ago.
Keytruda recorded $ 7.21 billion in revenue during the quarter, which was just 4% from the period of year-ears.
The growth was operated by the high levels of Keitruda for the first-phase cancer and the strong demand for drug for metastatic cancer, which spread to other parts of the body. According to Strikint’s estimates, yet, the sale came under $ 7.43 billion, which analysts expected.
In particular, Merc continues to see Trouble with China’s sales Gardasil, a vaccine that prevents cancer from HPV, the most common sexually transmitted infection in the US
In February, Merc announced the decision to prevent Gardasil shipment in China starting from that month and passing between at least 2025. Investors will be looking for an update on that effort during earnings call on Thursday.
The Chinese market makes most of the international revenue of blockbuster shot. Merc hopes that extended approval of Gardasil for men between 9 and 26 years of age in China will help promote the vaccine.
Gardasil raked sales in $ 1.33 billion, which was mainly 41% below the first quarter of 2024 due to low demand in China. According to Strikint’s estimates, analysts expected that it was below $ 1.45 billion.
China has retaliated with the US with a tariff of 125% on goods. Informed,
The Merck’s Animal Health Division, which develops vaccines and medicines for dogs, cats and cattle, posted about $ 1.59 billion in sales, up to 5% from the same period a year ago. The company said that high demand for livestock products and sales from Alackco’s Aqua Business, which it had achieved last year, increased that development.
