Merck Profit Report (MRK) Q1 2025

Merck On Thursday, he reduced his earning guide throughout the year, citing $ 200 million in estimated costs for rates and a position linked to a recent agreement.

The company now hopes that its adjusted profits of 2025 will be between $ 8.82 and $ 8.97, below an earlier perspective of $ 8.8 to $ 9.03 per share.

The company said that the expected tariff position mainly reflects levies between the United States and China, and Canada and Mexico to a lesser extent. Merck has built a robust presence in China, which is considered one of the most important markets of the company and houses some of its partners and manufacturing and research and development sites.

Merck pointed out that the new perspective does not take into account the planned rates of President Donald Trump about the pharmaceutical products imported to the US, which leads to some medication manufacturers to reinforce their US manufacturing footprints.

That includes Merck, who has invested $ 12 billion in manufacturing and research and development of the United States and hopes to put more than $ 9 billion more in the country at the end of 2028.

In a profit call on Thursday, Merck's CEO, Rob Davis, said that “while you look 2025, we are well positioned with inventory to mitigate anything we could see in the short term.” He added that in the medium and long term, “we have already begun to identify where we can reposition our own manufacturing”, which might seem to change the priorities of existing plants, or take the external manufacturing to “bridge witches” and build an even more internal production.

“In many ways, we are aligned with what the administration wants to do, and we feel that we are in a position to be able to do it quite effectively,” he said.

The new guide includes a single position of approximately 6 cents per share related to the company's license agreement with Hangrui Pharma, which announced in March.

Merck reiterated its sales prognosis throughout the year between $ 64.1 billion and $ 65.6 billion.

Also on Thursday, the medication manufacturer reported income and profits of the first quarter that exceeded expectations, since he said that he saw the strength in his Oncology portfolio and animal health products.

Merck also cited “increasingly significant” sales contributions of two recently launched drugs. They are Winrvair, which is used to treat a rare and mortal pulmonary condition and a capvaxive vaccine designed to protect adults from a bacterium known as pneumococcus that can cause serious diseases and pulmonary infection.

The sales of these medications will probably be fundamental for Merck's efforts to compensate for the losses of their best -selling Keytruda cancer therapy, which will lose exclusivity in 2028.

This is what Merck reported for the first quarter compared to what Wall Street expected, based on an LSEG analysts survey:

• Profit per action: $ 2.22 adjusted compared to $ 2.14 expected
• Revenue: $ 15.53 billion compared to $ 15.31 billion expected

The company registered net income of $ 5.08 billion, or $ 2.01 per share, for the quarter. That is compared to the net income of $ 4.76 billion, or $ 1.87 per share, during the period of year and more.

Excluding acquisition and restructuring costs, Merck won $ 2.22 per share for the first quarter.

Merck raised $ 15.53 billion in revenues for the quarter, 2% less than the same period of the previous year.

The Merck Pharmaceutical Unit, which develops a wide range of drugs, booked $ 13.64 billion in revenues during the first quarter. That has dropped 3% since the same period a year ago.

Keytruda registered $ 7.21 billion in revenues during the quarter, only 4% more than the period of year.

This increase was driven by a greater absorption of Keytruda for previous stage cancers and a strong drug demand for metastatic cancers, which spread to other parts of the body. Even so, sales were under the $ 7.43 billion that analysts expected, according to Streetacount estimates.

In particular, Merck continued to see problems with Gardasil's sales from China, a vaccine that prevents HPV cancer, the most common sexually transmitted infection in the United States.

In February, Merck announced the decision to stop Gardasil's shipments to China from that month and pass at least 2025. Investors will seek updates on that effort during the earning call on Thursday.

The Chinese market constitutes the majority of Blockbuster Shot's international income. Merck expects the expanded gardasil approval for men from 9 to 26 years in China to increase vaccine absorption.

Gardasil raised $ 1.33 billion in sales, 41% less than the first quarter of 2024 mainly due to the lowest demand in China. That is below the $ 1.45 billion that analysts expected, according to Streetacount estimates.

China has retaliation with 125% tariffs in goods from the US.

The Merck Animal Health Division, which develops vaccines and drug medications, cats and cattle, recorded almost $ 1.59 billion in sales, 5% more than the same period of the previous year. The company said that a greater demand for cattle and sales products of Aqua Business de Elanco, which it acquired last year, promoted that growth.