In the first quarter of 2025, Merck (MRK, Financial) reported a significant 41% decrease in HPV vaccine sales, totaling $1.3 billion. The pharmaceutical giant also addressed the impact of "reciprocal tariffs" on its annual performance. These tariffs are expected to add approximately $200 million in costs, primarily affecting the cost of sales and negatively impacting gross margins. The tariffs include those imposed by the U.S. on imports and by foreign governments on U.S. products.
Merck forecasts its global sales for 2025 to range between $64.1 billion and $65.6 billion. The company also anticipates a non-GAAP effective income tax rate between 15.5% and 16.5% for the year. Despite the overall sales decline, Merck achieved $15.5 billion in global sales for the first quarter, marking a 2% year-over-year decrease.
One of Merck's key products, Keytruda, continued to perform well with sales reaching $7.2 billion, reflecting a 4% increase from the previous year. However, the decline in sales was primarily driven by the drop in HPV vaccine sales, including Gardasil and Gardasil 9, which saw a 41% decrease to $1.3 billion.
