Core Insights - Merck & Co., Inc. reported strong third-quarter earnings, with adjusted earnings per share of $2.58, exceeding consensus estimates of $2.35 and significantly up from $1.57 a year ago [1] - The company achieved sales of $17.28 billion, a 4% year-over-year increase, surpassing analysts' projections of $16.96 billion [1] Financial Performance - The pharmaceutical segment generated $15.61 billion in sales, also up 4% year-over-year, driven by growth in oncology, cardiovascular, and diabetes, while vaccines, virology, and immunology saw declines [2] - The Animal Health segment reported revenue of $1.62 billion, a 9% increase year-over-year, primarily due to strong performance in livestock products [2] Product Performance - Keytruda, an immunotherapy for cancer, generated $8.14 billion in global sales, reflecting a 10% year-over-year increase due to strong demand from metastatic indications [3] - Sales from GARDASIL and GARDASIL 9 vaccines totaled $1.75 billion, down 24% compared to last year, attributed to lower demand in China [3] - The diabetes franchise, led by JANUVIA and JANUMET, saw a 29% increase in sales to $624 million [3] - Newer products, including Winrevair for pulmonary arterial hypertension, experienced a significant sales increase of 141% to $360 million [4] Guidance - Merck raised its fiscal 2025 adjusted earnings guidance to a range of $8.93-$8.98 per share, compared to the previous range of $8.87-$8.97 and the Wall Street estimate of $8.91 [5] - The company narrowed its fiscal 2025 sales outlook to a range of $64.5 billion to $65 billion, compared to the consensus estimate of $64.66 billion [5] M&A Strategy - A Merck executive indicated that the company is focused on potential acquisition deals in the range of $1 billion to $15 billion, with a willingness to consider larger deals [6]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Merck & Co., Inc. due to allegations of misleading statements regarding the demand for Gardasil in China, which may have led to inflated stock prices [2][4]. Group 1: Legal Investigation - The law firm is encouraging investors who suffered losses in Merck from February 3, 2022, to February 3, 2025, to discuss their legal options [1]. - There is an April 14, 2025, deadline for investors to seek the role of lead plaintiff in a federal securities class action against Merck [2]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [3]. Group 2: Allegations Against Merck - The complaint alleges that Merck and its executives violated federal securities laws by making false statements about the expected revenue of $11 billion from Gardasil sales by 2030 [4]. - It is claimed that Merck misled investors about the demand for Gardasil in China, leading to an inflated inventory with its distributor, Zhifei [4]. - Following the announcement of a 3% decline in Gardasil sales to $8.6 billion and a temporary pause in shipments to China, Merck's stock price fell by $9.05, or 9.1%, to close at $90.74 per share on February 4, 2025 [5][6].