Merck’s Gardasil Sales in China Continue to Decline Amid Economic and Regulatory Challenges

Sales Decline:
Merck's Gardasil sales in China fell 11% to $2.31 billion in the third quarter, missing analysts' estimates of $2.46 billion.

Economic and Regulatory Challenges:
The decline is attributed to economic issues and regulatory challenges, including a campaign targeting bribery of doctors that disrupts business and impacts promotional activities.

Long-term Outlook:
Despite current challenges, Merck believes the long-term opportunity for Gardasil in China remains significant, with a large population of women who could receive the vaccine and potential expansion to men.

Global Sales Goal:
Merck still expects to hit its goal of $11 billion in global sales for Gardasil by 2030.

Continued Challenges:
The company anticipates that the issues with Gardasil sales in China will continue into 2025.

Contrasting Performance:
Outside of China, Gardasil sales have shown strong growth, with double-digit increases in almost every other major region.