Merck & Co., Inc. Annual Report, Year Ended Dec 31, 2025

Merck & Co., Inc. reported total sales of $65.0 billion for the fiscal year 2025, a modest 1% increase year-over-year (2% excluding foreign exchange impact). This growth was primarily driven by strong performance in the oncology franchise, particularly Keytruda, and the Animal Health segment, alongside contributions from the cardiometabolic and respiratory portfolio, including the launch of Winrevair, and the acquisition of Verona Pharma which added Ohtuvayre. However, the company faced headwinds in its vaccines segment, notably a significant decline in Gardasil/Gardasil 9 sales in China due to inventory issues and local competition, as well as lower sales in the immunology and virology segments. Merck continued to bolster its pipeline through strategic business development, including the acquisition of Cidara Therapeutics and Verona Pharma, and exclusive license agreements for promising early-stage candidates. The company also advanced its late-stage pipeline with numerous regulatory submissions and positive Phase 3 trial results across various therapeutic areas. Despite revenue growth, the company announced a significant restructuring program aimed at optimizing operations and supporting future growth, expected to result in annual cost savings. Investors should monitor upcoming patent expirations for key products like Januvia and Janumet, and the ongoing impact of regulatory changes and pricing pressures, particularly from the Inflation Reduction Act, which is expected to affect Keytruda's U.S. sales in the future.