Merck's Dilemma: Keytruda Thrives While Gardasil Struggles in China

Merck & Co's Q3 earnings exceeded expectations thanks to Keytruda's strong sales, though Gardasil faced declining demand in China. Gardasil's 11% sales drop is linked to economic and anti-corruption challenges. Despite this, Merck expects long-term growth for Gardasil, aiming for $11 billion global sales by 2030.

Merck & Co reported higher-than-expected earnings for the third quarter, driven largely by robust sales of its cancer treatment Keytruda. However, the pharmaceutical giant highlighted a continuing slump in demand for its Gardasil vaccine in China, marking a consecutive quarter of weak performance in the region.

The decline in Gardasil sales—down 11% to $2.31 billion, falling short of the projected $2.46 billion—has been attributed to economic factors and concerns regarding anti-corruption efforts impacting promotional activities. Merck's CEO, Rob Davis, acknowledged the immediate need to stimulate demand in China, despite seeing international growth elsewhere.

Merck's overall quarterly earnings stood at $3.99 billion, or $1.57 per share, surpassing average analyst forecasts, despite being lower than the previous year's figures due to acquisition costs. Keytruda sales increased by 17%, while Gardasil's long-term potential in China remains optimistic, with expansion plans potentially including male vaccinations.

(With inputs from agencies.)