Financial Data and Key Metrics Changes - The company reported total revenues of $15.8 billion, a decrease of 2% both nominally and excluding foreign exchange impact [17] - Earnings per share were $2.13, with gross margin at 82.2%, an increase of 1.3 percentage points driven by favorable product mix [24][23] - The company expects full year revenue for 2025 to be between $64.3 billion and $65.3 billion, representing growth of 1% to 2% [26] Business Line Data and Key Metrics Changes - Oncology sales, particularly from Keytruda, increased by 9% to $8 billion, driven by robust demand for metastatic indications [18] - Sales of Gardasil decreased by 55% to $1.1 billion, primarily due to a decline in China [19] - The Animal Health business saw an 11% increase in sales, reflecting higher demand across all species [22] Market Data and Key Metrics Changes - Global growth excluding Gardasil in China was 7%, primarily driven by strength in oncology and animal health [17] - In the U.S., Vaxnuvance sales increased by 20%, benefiting from CDC stockpile activity [20] - The company anticipates a more significant headwind to growth in Japan for Gardasil in the second half of the year [28] Company Strategy and Development Direction - The company is focusing on a multi-year optimization initiative to redirect $3 billion of cost savings from lower growth areas to higher potential areas [25] - The acquisition of Verona Pharma is expected to enhance the cardiopulmonary program and reflects the company's commitment to transformative science [12] - The company aims to leverage its scientific expertise to deliver the next wave of innovations that can save and improve lives [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in 2025 and highlighted the strong clinical momentum and new product launches [9] - The company is entering a period of rapid transformation, with a diversified pipeline and over 20 new growth drivers [14] - Management acknowledged challenges in the Chinese market for Gardasil but remains focused on new product launches to drive growth [28] Other Important Information - The FDA approved Inflonsia for RSV prevention in infants, marking a significant milestone for the company [38] - The company is conducting over 80 phase three studies across various therapeutic areas, indicating strong clinical development activity [10] Q&A Session Summary Question: Context for outcomes in the Cadence trial - Management indicated that the most important signal for success is the PVR, with the six-minute walk also being important [52] Question: Market size for Winrevir and ex-U.S. strategy - Management noted that the patient population for Winrevir is underdiagnosed, and they expect growth in the ex-U.S. market as reimbursements come in [64] Question: $3 billion restructuring announcement - Management clarified that the $3 billion is a reallocation of resources from slower growth areas to fund faster-growing segments, with an expectation of overall growth in spending [70][72] Question: Gardasil demand dynamics and ACIP recommendations - Management expressed confidence in Gardasil's safety and efficacy but noted the high evidentiary standard set by the FDA for any changes in dosing recommendations [77] Question: Diligence in assets between Chinese and Western companies - Management emphasized a high standard for diligence regardless of the origin of the assets, highlighting the strategic advantage of the Verona acquisition [86] Question: Progress on Winrevir and patient adoption - Management reported steady growth in patient adds for Winrevir and increasing adoption among less severe patients [96]

Financial Data and Key Metrics Changes - The company reported total revenues of $15.8 billion, a decrease of 2% both nominally and excluding foreign exchange impact [16] - Earnings per share were $2.13, reflecting strong fundamentals despite revenue decline [23] Business Line Data and Key Metrics Changes - Oncology sales, particularly from Keytruda, increased by 9% to $8 billion, driven by robust demand in both US and international markets [17] - Sales of Gardasil decreased by 55% to $1.1 billion, primarily due to a decline in China [18] - Winrevir achieved global sales of $336 million, with cumulative sales exceeding $1 billion in just over a year since launch [20] - The Animal Health business saw an 11% increase in sales, reflecting higher demand across all species [21] Market Data and Key Metrics Changes - Global growth, excluding Gardasil sales in China, was 7%, driven by strength in oncology and animal health [16] - The company noted that Gardasil channel inventories in China remain elevated, with soft demand impacting sales [28] Company Strategy and Development Direction - The company announced a multi-year optimization initiative to redirect $3 billion in cost savings from lower growth areas to higher potential areas [25] - The acquisition of Verona Pharma is expected to enhance the cardiopulmonary program and reflects the company's commitment to transformative science [10][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in 2025, supported by new product launches and a strong pipeline [7][26] - The company anticipates challenges in the second half of the year, particularly with Gardasil in Japan and China [28] Other Important Information - The company is conducting over 80 phase three studies across various therapeutic areas, indicating strong clinical momentum [8] - The FDA approved Inflonsia for RSV prevention in infants, marking a significant milestone for the company [9] Q&A Session Summary Question: Context for Cadence outcomes - Management indicated that the most important signal for success in the Cadence study is the PVR, with the six-minute walk also being significant [51][52] Question: Ex-US uptake of Winrevir - Management noted that growth in the ex-US market is expected to accelerate in the second half of the year, with recent approvals in Japan [61][62] Question: Impact of $3 billion restructuring - Management clarified that the $3 billion will be reinvested into high-potential areas, with a focus on funding the pipeline and commercial launches [67][69] Question: Gardasil demand dynamics - Management expressed confidence in Gardasil's safety and efficacy, but noted challenges in the CDC purchasing dynamics and soft demand in China [72][78] Question: Valuation for Chinese partner Lenovo - Management confirmed that the Lenovo program is progressing as planned, with no issues reported [88][89]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The news team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Financial Performance - Q2 Worldwide Sales reached $15.8 billion, a decrease of 2% nominally and ex-FX[10, 24] - Non-GAAP EPS was $2.13, a decrease of 7%[10] - KEYTRUDA sales increased by 9% to $8.0 billion, driven by strong demand[25] - GARDASIL sales decreased by 55% to $1.1 billion, primarily due to China[31] - Animal Health sales increased by 11% to $1.6 billion[45] Pipeline and Regulatory Updates - FDA approved ENFLONSIA for RSV prevention in infants[14, 61] - FDA accepted NDA for doravirine + islatravir for HIV-1 treatment[14, 61] - Positive topline results were announced for enlicitide in hyperlipidemia and WINREVAIR in PAH[14, 59, 60] Future Outlook - Updated 2025 revenue guidance is $64.3 billion to $65.3 billion, implying +0% to +2% nominal growth[49] - The company anticipates a commercial opportunity exceeding $50 billion by the mid-2030s from recent launches and the late-phase pipeline[20]

Merck (MRK) came out with quarterly earnings of $2.13 per share, beating the Zacks Consensus Estimate of $2.01 per share. This compares to earnings of $2.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +5.97%. A quarter ago, it was expected that this pharmaceutical company would post earnings of $2.15 per share when it actually produced earnings of $2.22, delivering a surprise of +3.26%.Over the last four quarters, the comp ...

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Consolidated Statement of Income (GAAP)](index=1&type=section&id=Consolidated%20Statement%20of%20Income%20%28GAAP%29) Merck's Q2 and YTD 2025 GAAP results show declining sales and net income, with increased R&D expenses | Metric | 2Q 2025 (Millions) | 2Q 2024 (Millions) | % Change (2Q) | YTD 2025 (Millions) | YTD 2024 (Millions) | % Change (YTD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales | $15,806 | $16,112 | -2% | $31,335 | $31,887 | -2% | | Net Income Attributable to Merck & Co., Inc. | $4,427 | $5,455 | -19% | $9,506 | $10,217 | -7% | | Earnings per Common Share Assuming Dilution | $1.76 | $2.14 | -18% | $3.77 | $4.02 | -6% | | Cost of sales | $3,557 | $3,745 | -5% | $6,976 | $7,285 | -4% | | Research and development | $4,048 | $3,500 | 16% | $7,669 | $7,492 | 2% | | Income Before Taxes | $4,999 | $6,006 | -17% | $10,902 | $11,675 | -7% | | Tax Rate | 11.4% | 9.1% | - | 12.7% | 12.4% | - - Research and development expenses increased by **16% in Q2 2025 to $4,048 million** and by **2% YTD 2025 to $7,669 million**, indicating continued investment in innovation despite overall sales decline[2](index=2&type=chunk) [GAAP to Non-GAAP Reconciliation](index=2&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section reconciles GAAP to non-GAAP measures, excluding specific items to highlight core business performance, with non-GAAP figures generally higher due to adjustments | Metric | GAAP 2Q 2024 (Millions) | Non-GAAP 2Q 2024 (Millions) | GAAP YTD 2024 (Millions) | Non-GAAP YTD 2024 (Millions) | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Merck & Co., Inc. | $5,455 | $5,809 | $10,217 | $11,087 | | Earnings per Common Share Assuming Dilution | $2.14 | $2.28 | $4.02 | $4.36 | | Tax Rate | 9.1% | 14.1% | 12.4% | 15.0% | - Non-GAAP adjustments primarily exclude expenses for amortization of intangible assets in cost of sales and R&D, integration/transaction costs in SG&A, employee separation costs, and accelerated depreciation from restructuring programs[6](index=6&type=chunk)[7](index=7&type=chunk) - A significant tax benefit was recognized due to a reduction in reserves for unrecognized income tax benefits resulting from the expiration of the statute of limitations for assessments related to the 2019 federal tax return year[8](index=8&type=chunk) [Product and Segment Sales Analysis](index=3&type=section&id=Product%20and%20Segment%20Sales%20Analysis) [Franchise / Key Product Sales - Second Quarter 2025](index=3&type=section&id=Franchise%20%2F%20Key%20Product%20Sales%20-%20Second%20Quarter%202025) Q2 2025 global sales decreased by 2% due to international declines, despite strong U.S. growth and Keytruda's performance, while Gardasil/Gardasil 9 sales significantly dropped | Product/Segment | Global 2Q 2025 (Millions) | Global 2Q 2024 (Millions) | % Change (Global) | U.S. 2Q 2025 (Millions) | U.S. 2Q 2024 (Millions) | % Change (U.S.) | International 2Q 2025 (Millions) | International 2Q 2024 (Millions) | % Change (International) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | TOTAL SALES | $15,806 | $16,112 | -2% | $8,836 | $7,876 | 12% | $6,969 | $8,236 | -15% | | PHARMACEUTICAL | $14,050 | $14,408 | -2% | $8,328 | $7,399 | 13% | $5,722 | $7,009 | -18% | | Keytruda | $7,956 | $7,270 | 9% | $4,749 | $4,412 | 8% | $3,207 | $2,858 | 12% | | Gardasil/Gardasil 9 | $1,126 | $2,478 | -55% | $545 | $536 | 2% | $581 | $1,941 | -70% | | Winrevair | $336 | $70 | * | $323 | $70 | * | $12 | - | - | | ANIMAL HEALTH | $1,646 | $1,482 | 11% | $499 | $455 | 9% | $1,147 | $1,027 | 12% | | Other Revenues | $110 | $222 | -50% | $9 | $22 | -59% | $100 | $200 | -50% | - Winrevair, a new cardiovascular product, showed exceptional growth, increasing from **$70 million in Q2 2024 to $336 million in Q2 2025 globally**[10](index=10&type=chunk) - The significant decline in Gardasil/Gardasil 9 sales, particularly **internationally (-70%)**, was a major factor in the overall pharmaceutical sales decrease[10](index=10&type=chunk) [Franchise / Key Product Sales - June Year-to-Date 2025](index=5&type=section&id=Franchise%20%2F%20Key%20Product%20Sales%20-%20June%20Year-to-Date%202025) YTD 2025 global sales decreased by 2%, driven by international declines, while U.S. sales and Keytruda grew, and Winrevair showed strong performance despite Gardasil/Gardasil 9's significant drop | Product/Segment | Global YTD 2025 (Millions) | Global YTD 2024 (Millions) | % Change (Global) | U.S. YTD 2025 (Millions) | U.S. YTD 2024 (Millions) | % Change (U.S.) | International YTD 2025 (Millions) | International YTD 2024 (Millions) | % Change (International) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | TOTAL SALES | $31,335 | $31,887 | -2% | $17,359 | $15,354 | 13% | $13,977 | $16,533 | -15% | | PHARMACEUTICAL | $27,688 | $28,415 | -3% | $16,254 | $14,336 | 13% | $11,434 | $14,079 | -19% | | Keytruda | $15,161 | $14,217 | 7% | $9,057 | $8,531 | 6% | $6,104 | $5,686 | 7% | | Gardasil/Gardasil 9 | $2,453 | $4,727 | -48% | $1,082 | $1,024 | 6% | $1,371 | $3,702 | -63% | | Winrevair | $615 | $70 | * | $591 | $70 | * | $24 | - | - | | ANIMAL HEALTH | $3,234 | $2,993 | 8% | $1,001 | $929 | 8% | $2,233 | $2,064 | 8% | | Other Revenues | $413 | $479 | -14% | $104 | $89 | 17% | $310 | $390 | -21% | - Winrevair's year-to-date sales reached **$615 million**, demonstrating continued strong performance since its introduction[20](index=20&type=chunk) - Total Vaccines sales globally decreased by **29.7% YTD 2025 ($4,977 million)** compared to YTD 2024 (**$7,080 million**), primarily due to the decline in Gardasil/Gardasil 9[24](index=24&type=chunk) [Pharmaceutical Geographic Sales](index=7&type=section&id=Pharmaceutical%20Geographic%20Sales) Global pharmaceutical sales declined in Q2 and YTD 2025, with strong U.S. growth offset by a dramatic 77% drop in China, primarily due to Gardasil/Gardasil 9 sales | Region | 2Q 2025 (Millions) | 2Q 2024 (Millions) | % Change (2Q) | YTD 2025 (Millions) | YTD 2024 (Millions) | % Change (YTD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | TOTAL PHARMACEUTICAL | $14,050 | $14,408 | -2% | $27,688 | $28,415 | -3% | | United States | $8,328 | $7,399 | 13% | $16,254 | $14,336 | 13% | | China | $407 | $1,790 | -77% | $1,075 | $3,534 | -70% | | Eastern Europe/Middle East/Africa | $451 | $353 | 28% | $886 | $747 | 19% | - The decline in China's pharmaceutical sales is largely attributed to Gardasil/Gardasil 9 sales, which were **$0 in Q2 2025** compared to **$1,312 million in Q2 2024**[31](index=31&type=chunk) - The U.S. market's share of pharmaceutical sales increased from **51.4% in Q2 2024 to 59.3% in Q2 2025**, highlighting its growing importance[30](index=30&type=chunk) [Other Financial Details](index=8&type=section&id=Other%20Financial%20Details) [Other (Income) Expense, Net (GAAP)](index=8&type=section&id=Other%20%28Income%29%20Expense%2C%20Net%20%28GAAP%29) Other (income) expense, net, shifted to a net expense in Q2 and YTD 2025, driven by increased exchange losses and reduced miscellaneous income | Item | 2Q 2025 (Millions) | 2Q 2024 (Millions) | YTD 2025 (Millions) | YTD 2024 (Millions) | | :--- | :--- | :--- | :--- | :--- | | Interest income | $(69) | $(69) | $(178) | $(141) | | Interest expense | $305 | $310 | $618 | $613 | | Exchange losses | $78 | $60 | $167 | $144 | | Income from investments in equity securities, net | $(100) | $(56) | $(189) | $(200) | | Net periodic defined benefit plan (credit) cost other than service cost | $(152) | $(159) | $(300) | $(319) | | Other, net | $(69) | $(44) | $(161) | $(85) | | Total | $(7) | $42 | $(43) | $12 | - Exchange losses increased from **$60 million in Q2 2024 to $78 million in Q2 2025**, and from **$144 million YTD 2024 to $167 million YTD 2025**[33](index=33&type=chunk) - Net income from investments in equity securities decreased from **$(56) million in Q2 2024 to $(100) million in Q2 2025**, indicating a decline in investment performance[33](index=33&type=chunk)

美国制药巨头默克公司宣布裁员计划，预计通过重组节省30亿美元成本。默克公司还更新了全年销售指 引，预计全年销售额为643亿美元至653亿美元，此前预计为641亿美元至656亿美元。 ...

Core Viewpoint - Merck & Co. is implementing a $3 billion cost-cutting initiative by the end of 2027 to reinvest in new product launches and its drug pipeline, in response to upcoming revenue losses from the patent expiration of Keytruda in 2028 and external pressures such as tariffs on pharmaceuticals [1][2][3]. Cost-Cutting and Restructuring - The multi-year optimization initiative aims to redirect investments from mature business areas to new growth drivers, facilitating portfolio transformation and innovation-driven growth [3]. - A new restructuring program has been approved, which will eliminate certain administrative, sales, and research and development positions, reduce global real estate, and pare back the manufacturing network, expected to generate around $1.7 billion in annual cost savings by the end of 2027 [4]. - The total pretax costs related to the restructuring program are estimated to be approximately $3 billion, with a $649 million charge recorded in the second quarter [5]. Financial Performance - In the second quarter, Merck's revenue fell short of Wall Street estimates for the first time since April 2021, reporting $15.81 billion compared to the expected $15.89 billion [5][10]. - The company posted a net income of $4.43 billion, or $1.76 per share, down from $5.46 billion, or $2.14 per share, in the same period last year [9]. - Adjusted earnings per share for the second quarter were $2.13, which may not be directly comparable to estimates of $2.01 [11]. Sales and Guidance - While Keytruda sales grew, Merck faced challenges with Gardasil sales in China, leading to a halt in shipments until at least mid-2025 due to high inventories and soft demand [6][7]. - Merck has narrowed its full-year guidance for 2025 adjusted earnings to between $8.87 and $8.97 per share and revenue expectations to between $64.3 billion and $65.3 billion [8].

Core Viewpoint - Iovance Biotherapeutics' stock has seen a significant decline, down approximately 75% from its peak in December, leading to mixed opinions among analysts regarding its valuation and future potential [1][2][3]. Group 1: Analyst Ratings and Price Targets - Chardan Capital maintains a buy rating with a price target of $25, suggesting a potential gain of about 720% from the current price of $3.05 [2]. - The consensus price target for Iovance is $10 per share, indicating a potential average gain of 228% [3]. Group 2: Product Approval and Market Potential - The FDA approved Iovance's first product, Amtagvi, in February 2024, which is a cell-based treatment for advanced melanoma [5]. - In clinical trials, Amtagvi demonstrated a tumor shrinkage response in 31.5% of patients who had previously failed PD-1 blocking therapies [6]. - Among 41 patients evaluated post-approval, 20 showed smaller tumors or no tumors, with a response rate of 60.9% in those with limited prior treatments [7]. Group 3: Challenges Facing Iovance - Goldman Sachs downgraded Iovance to sell, citing concerns over a slower-than-expected launch of Amtagvi [8]. - The launch faces challenges including the FDA's approval based on tumor shrinkage rather than overall survival benefits, a small sales team, and the complex administration of the treatment [9][10]. - Sales for Amtagvi reached $43.6 million in Q1 2025, which is below expectations for a blockbuster product [11]. Group 4: Financial Outlook and Market Valuation - Iovance's market cap is approximately $1.05 billion, which is considered low for a biotech company with a new product [12]. - Management projects sales between $250 million and $300 million for the year, with biotech stocks typically trading at mid-to-high single-digit multiples of trailing sales [12]. - The resignation of the CFO raises concerns about future sales guidance, as such changes are often associated with disappointing forecasts [14].

Welcome back to the exchange. Healthcare the best performing sector last week, but it is having its worst three-year run in more than a decade. This according to Missouo, up two and a half% compared to a 57% gain for the S&P 500.Managed care names like Sigma and Humana reporting this week as well as large cap pharma including Bristol Myers and Merc. Can strong earnings out of the names keep the positive momentum going. Joining us now, Umar Rafat, senior analyst at Evercore ISI.Um, great to have you with us. ...