Why Merck (MRK) Is Plunging Today

Merck (MRK) stock is sinking 10% after the company provided weaker-than-expected 2025 guidance amid weak sales of Gardasil, its HPV vaccine.

Additionally, the huge drug maker withdrew its long-term guidance for Gardasil’s sales, while the revenue of its diabetes drugs plunged in the fourth quarter.

A laboratory setting with researchers working to develop the company’s immuno-therapies.

Merck’s Guidance Miss and Gardasil Woes

MRK provided 2025 adjusted EPS guidance of $8.88 to $9.03, while the giant drugmaker expects sales of $64.1 billion to $65.6 billion. Analysts, on average, had expected the company to generate EPS of $9.13 and sales of $67 billion in 2025.

Weakening Gardasil demand may be a key reason for the guidance miss. Last quarter, the revenue generated by the vaccine sank 17% versus Q4 of 2023 to $1.55 billion amid lower demand for the shot in China.

And indicating that the issues with Gardasil could continue, MRK withdrew its previous long-term guidance for the shot which had called for its annual sales to surge to $11 billion by 2030.

Moreover, the revenue generated by the company’s diabetes drugs, Januvia and Janumet, plunged 38% year-over-year last quarter to $487 million.

What Went Right for MRK 

On a positive note, the company reported Q4 EPS, excluding some items, of $1.72, well above analysts’ average estimate of $1.01.

The results were boosted by the continued success of anti-cancer drug Keytruda whose sales surged 19% YOY to $7.8 billion.

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Disclosure: None. This article is originally published at Insider Monkey.