Merck(US:MRK) 智通财经网·2025-07-29 12:26Core Viewpoint - Merck (MRK.US) is reducing annual spending by $3 billion in anticipation of generic competition for its best-selling cancer drug Keytruda, while also facing challenges with its HPV vaccine Gardasil and adjusting its revenue and profit guidance for the year [1][4][5] Financial Performance - Merck reported quarterly revenue of $15.81 billion, meeting market expectations, with a net profit of $4.43 billion, down from $5.46 billion year-over-year [1] - Keytruda's sales increased by 9% year-over-year to $7.96 billion, exceeding analyst expectations, contributing to an adjusted earnings per share of $2.13, above the Wall Street forecast of $2.01 [4] - The company narrowed its full-year revenue guidance from $64.1-65.6 billion to $64.3-65.3 billion and adjusted its earnings per share forecast from $8.82-8.97 to $8.87-8.97 [4] Strategic Initiatives - The company plans to allocate savings from the spending cuts towards new drug development and market launches, shifting resources from mature business areas to emerging growth engines [2] - Merck's CEO expressed confidence in navigating the expiration of Keytruda's patent, viewing it as a challenge to overcome rather than a cliff [2] Market Challenges - Merck announced an extension of the supply suspension for Gardasil in China until the end of 2025, significantly delaying previous expectations of a mid-year recovery [2] - Gardasil's sales fell by 55% in the second quarter, primarily due to decreased demand in China, with a 3% decline excluding the Chinese market [2] Future Outlook - The company is facing a significant revenue gap as Keytruda, which accounts for nearly half of its revenue, is expected to decline post-patent expiration [5] - Merck is promoting Winrevair, a potential blockbuster for rare lung disease treatment, and plans to launch a convenient version of Keytruda, which is expected to capture 30%-40% of the original formulation's market share [5]