Merck’s Q4 Profit Boosted by Keytruda Sales, Gardasil Demand Remains Weak in China
Merck & Co. reported a strong fourth-quarter profit, driven by robust sales of its cancer drug, Keytruda. However, the pharmaceutical giant announced it will pause shipments of its HPV vaccine, Gardasil, to China through at least mid-year. This decision comes as a result of continued weak demand for the vaccine in the country.
Strong Sales of Keytruda
Merck’s fourth-quarter revenue came in at $14.6 billion, exceeding analysts’ expectations. The company’s net income for the quarter was $3.1 billion, or $1.17 per share, up from $2.2 billion, or 78 cents per share, a year ago. The primary contributor to this growth was Keytruda, Merck’s blockbuster cancer drug, which recorded sales of $4.3 billion, a 38% increase from the previous year.
Weak Demand for Gardasil in China
Despite the positive news regarding Keytruda, Merck’s vaccine business faced challenges. The company announced it will pause shipments of Gardasil to China due to weak demand. Merck expects this situation to continue through at least the first half of 2023, which could negatively impact its 2025 revenue.
Impact on Merck
The pause in Gardasil shipments to China will have a significant impact on Merck’s overall revenue. In 2021, China accounted for around 10% of Merck’s total revenue. Gardasil is one of Merck’s top-selling vaccines, and the weak demand in China is a concern for the company.
Impact on Consumers
The pause in Gardasil shipments to China may lead to supply shortages in other markets, as the vaccine is manufactured in China. However, Merck has stated that it has sufficient inventory to meet global demand for the time being. Consumers who rely on Gardasil for HPV prevention should consult their healthcare providers for alternative options if they are unable to obtain the vaccine.
Impact on the World
The weak demand for Gardasil in China could have broader implications. HPV is a common sexually transmitted infection that can lead to various types of cancer, including cervical, throat, and anal cancer. The World Health Organization (WHO) recommends HPV vaccination for adolescents and young adults to prevent these cancers. A decrease in Gardasil availability in China could lead to an increase in HPV infections and subsequent cases of cancer.
- Merck reported strong Q4 profits, driven by Keytruda sales
- Gardasil shipments to China will be paused due to weak demand
- This situation could negatively impact Merck’s 2025 revenue
- Consumers may experience supply shortages, but Merck has sufficient inventory
- Weak Gardasil demand in China could lead to an increase in HPV infections and cancer cases
Conclusion
Merck’s strong fourth-quarter profits, driven by Keytruda sales, were overshadowed by the announcement of a pause in Gardasil shipments to China due to weak demand. This situation could negatively impact Merck’s revenue and potentially lead to supply shortages and an increase in HPV infections and cancer cases. Consumers and healthcare providers should stay informed about the availability of Gardasil and consider alternative options for HPV prevention.
