Merck Q2 2025 Financial Results and Strategic Restructuring Program

Merck & Co., Inc. reported a 2% year-over-year decline in Q2 2025 total sales to $15.8 billion, driven by a 55% drop in GARDASIL/GARDASIL 9 sales due to reduced demand in China. KEYTRUDA sales grew 9% to $8.0 billion, while Animal Health revenue rose 11%. Non-GAAP EPS fell 7% to $2.13. The company announced a multiyear restructuring program targeting $3.0 billion in annual cost savings by 2027, with $1.7 billion expected by 2027, involving workforce reductions and manufacturing optimizations. Merck also disclosed a $10 billion agreement to acquire Verona Pharma, adding the COPD drug Ohtuvayre. Regulatory milestones include FDA approval of ENFLONSIA for RSV prevention in infants and positive Phase 3 results for enlicitide decanoate in hyperlipidemia. The restructuring charges totaled $649 million in Q2, and full-year 2025 sales guidance was narrowed to $64.3–$65.3 billion.