On Tuesday, April 8, 2025 in New York, USA in New York Stock Exchange (NYSE), Merc & Company Signage.
Michael Nagle | Bloomberg | Getty images
Merk It was stated on Tuesday that it would reduce the cost of $ 3 billion by the end of 2027, the new product will be fully reinstated to launch and support its drug pipeline.
Multi-year attempt comes when Merc prepares to offset the revenue deficit in 2028 from the upcoming patent of its blockbuster cancer drug Kitruda. It also comes as a drug maker for President Donald Trump. Schematic tariffs on imported pharmaceuticals in the US, Which has inspired Merc and other companies to invest billions to promote their manufacturing footprints in the US
Rob Davis, CEO of Merc said in a release, “Today, we announced a multier optimization initiative, which will bring investment and resources to the boring array of our new growth drivers from the more mature areas of our business, will further further the change of our portfolio, and the productive, innovation-operated development will be carried forward.
As part of the attempt, in July, Merc approves a new reorganization program that would eliminate some administrative, sales and research and development positions. The company will also reduce its global real estate footprint and continue its manufacturing network back.
The Merc is expected to take action under the restructuring program that it will produce approximately $ 1.7 billion in annual cost savings, most of which will kick by the end of 2027.
The company hopes that the pretax cost related to the restructuring program will be around $ 3 billion. For its second quarter, Merc recorded a $ 649 million fee related to the program.
In addition, on Tuesday, Merc reported the revenue of the second quarter which was lower than the estimates of Wall Street. This was the first time I missed Metric expectations since April 2021.
While the sales of Kitruda increased during this period, Merc saw trouble with Gardasil’s China sales, a vaccine that prevents cancer from HPV, the most common sexual 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. In the comments prepared on Tuesday, Merc CFO Caroline Lechfield said that the company would not resume shipments in China through the end of at least 2025, given that the invention is high and the demand is still soft.
The company also limited its full year’s guidance. Merc now hopes that its 2025 adjusted earnings will come between $ 8.87 and $ 8.97 per share. It compares with its previous perspective of $ 8.82 to $ 8.97 per share.
Mark hopes that the revenue for the year came between $ 64.3 billion and $ 65.3 billion, compressed with previous guidance of $ 64.1 billion to $ 65.6 billion at both ends.
What Merc here told for the second quarter what Wall Street was expecting, based on a survey of analysts by LSEG:
- earnings per share: $ 2.13 adjusted. This figure may not be equal to estimates of $ 2.01.
- Income: $ 15.81 billion vs $ 15.89 billion is expected
Merc said that its guidance included an estimated impact of already declared $ 200 million which Trump has been involved in the implemented tariffs till date. In April, the company said that Expected tariff charge Mainly reflects levy between the US and China, but the sector-specific drug was not responsible for tariffs.
The Outlook also includes a one -time fee related to the company’s license agreements with Hengrui Pharma and Lanova, but recently not announced the acquisition of Verona Pharma.
The company posted a net income of $ $ 4.43 billion for the quarter, or $ 1.76 per share. It compares with a net income of $ 5.46 billion, or $ 2.14 per share during the year-east period.
Except for the acquisition and restructuring costs, Merc earned $ 2.13 per share for the second quarter. This includes 7 cents per share for closing the license agreement with Hengrui Pharma.
The Merc recorded revenue in revenue for the quarter to $ 15.81 billion, 2% below the same period a year ago.
Pharmaceutical, Animal Health Sales
Merc’s pharmaceutical unit, which develops a wide range of drugs, booked a revenue of $ 14.05 billion during the second quarter. It is 2% below the same period a year ago.
Keytruda recorded $ 7.96 billion in revenue during the quarter, which was just 9% of the year-ears.
The company said that this growth was inspired by the high levels of Keitruda for earlier cancer and strong demand for drug for metastatic cancer, which had spread to other parts of the body. According to Strikint’s estimates, analysts expected the drug to sell $ 7.9 billion.
Gardasil generated a $ 1.13 billion sales for the quarter, which was 55% below the same period a year ago due to low demand in China. Strikount estimates stated that analysts expected Gardasil to sell $ 1.33 billion.
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 sales in the US increased by 2% during the second quarter.
Meanwhile, the new drug vinereweer of the Merc, which is used to treat a rare, malignant lung conditions, recorded $ 336 million in sales for the quarter. According to Strikint’s estimates, analysts expected to bring the drug to $ 324.7 million.
The Merck’s Animal Health Division, which develops vaccines and medicines for dogs, cats and cattle, posted about $ 1.65 billion in sales, up to 11% from the same period before one year. 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.
