Merck's Gardasil: Navigating Challenges in China While Keytruda Leads the Way

Merck & Co reports robust quarterly earnings attributed to Keytruda's strong performance, despite facing diminishing demand for its Gardasil vaccine in China. Gardasil sales fell 11%, missing analyst targets. However, outside China, Gardasil showcases growth, and Merck remains optimistic about its long-term potential in the Chinese market.

Merck & Co reported higher-than-anticipated quarterly earnings on Thursday, buoyed by robust sales of its blockbuster cancer treatment, Keytruda. However, the company also highlighted a second consecutive quarter of declining demand for its Gardasil vaccine in China.

Despite being a significant growth driver globally, Gardasil sales dropped by 11% to $2.31 billion, missing analysts' estimates of $2.46 billion. CEO Rob Davis attributed the slide in China sales to economic factors, promotional activities concerns, and inventory adjustments. He emphasized the need to boost demand.

Nonetheless, Merck remains hopeful about Gardasil's long-term potential in China. CEO Davis noted the vaccine's significant opportunities in the country's large female population and considers potential male market expansion. The company aims for $11 billion in global Gardasil sales by 2030.

(With inputs from agencies.)