Merck & Co. has halted shipments of its HPV vaccine Gardasil to China, citing ongoing market challenges and excess inventory. The move, effective from February 2025 through mid-2025, aims to clear out remaining doses and reduce channel inventory.
Gardasil sales have declined by 18% globally over the last three months of 2024, with revenue falling to $1.6 billion compared to $2 billion in the same period last year. The vaccine’s sales dropped 3% for the full year, reaching $8.6 billion. Merck’s share price took a 11% hit on the news.
Merck attributed the decline to lower adoption in China, where demand has been stagnant since July last year. However, Gardasil recently gained an expanded approval in China to prevent certain HPV-related cancers and diseases in men ages 9-25. Despite this, Merck’s CEO noted that demand for the vaccine had not recovered as expected.
The halt on shipments will facilitate a more rapid reduction of inventory, according to Merck. However, the company remains optimistic about Gardasil’s future sales prospects in China, citing the large number of people who have yet to be immunized against HPV.
Merck currently expects full-year 2025 sales between $64.1 billion and $65.5 billion, with guidance adjusted for the halted shipments. The company previously set a goal for Gardasil to reach $11 billion in annual sales but has withdrawn this target due to uncertainty over China’s economic recovery.
Source: https://www.fiercepharma.com/pharma/merck-puts-temporary-kibosh-gardasil-shipments-china-local-demand-hpv-vaccine-nosedives