Merck & Co., Inc., based in Rahway, N.J., announced on July 29, 2025, its second-quarter financial results for the year alongside significant strategic initiatives aimed at fostering long-term growth. The company reported total sales of $15.8 billion for the quarter, marking a decline of 2% from $16.1 billion a year earlier. This decrease was primarily influenced by lower sales of key products including GARDASIL and JANUVIA, though strong growth was noted in oncology sales with KEYTRUDA witnessing a 9% increase to $8.0 billion.
Robert M. Davis, the chairman and CEO of Merck, expressed confidence in the company’s direction following its recent announcement of a $10 billion acquisition deal for Verona Pharma, which is expected to enhance its product portfolio significantly. The acquisition includes Ohtuvayre®, a pioneering treatment for chronic obstructive pulmonary disease (COPD), recently approved by the FDA, and marks a strategic expansion into a crucial therapeutic area.
In alignment with this acquisition, Merck unveiled a multi-year optimization initiative designed to optimize its investment strategy and redirect resources toward emerging growth sectors. This program aims to achieve annual savings of approximately $3.0 billion by the end of 2027, which will be reinvested into the development and launch of new products.
Furthering its innovation agenda, Merck recently announced favorable results from Phase 3 CORALreef trials for enlicitide decanoate, an oral treatment for hyperlipidemia, and achieved FDA approval for ENFLONSIA, an RSV preventive for infants. These milestones reflect a robust pipeline committed to addressing critical healthcare needs and enhancing patient outcomes.
The company’s gross margin improved slightly to 77.5%, attributed to a favorable product mix, despite higher costs associated with restructuring and inventory write-offs. GAAP earnings per share decreased to $1.76 compared to $2.14 in the prior year, primarily due to increased operational expenses and a charge related to the Hengrui Pharma license agreement.
Merck is poised for a transformative period, as its strategic focus on research, acquisitions, and optimization initiatives aims to benefit shareholders and improve health outcomes for patients globally. The company’s strong pipeline and innovative therapies reflect a commitment to advancing healthcare and addressing unmet medical needs, creating a hopeful outlook for future growth and societal impact.