Merck & Co. reported second-quarter 2025 revenue of $15.8 billion, down 2 % from a year earlier, and GAAP earnings of $1.76 a share. Non-GAAP earnings came in at $2.13. The quarter was marked by a 9 % rise in sales of cancer drug Keytruda to $8 billion, but a 55 % plunge in Gardasil human-papillomavirus vaccine revenue to $1.1 billion as demand in China and Japan weakened. Net income slipped to $4.4 billion from $5.5 billion a year ago. To counter the erosion in Gardasil sales and prepare for U.S. patent expiry of Keytruda in 2028, the company launched a multiyear optimisation initiative aimed at generating $3 billion in annual savings by the end of 2027. The programme will eliminate unspecified administrative, sales and R&D positions, shrink Merck’s global real-estate footprint and further streamline its manufacturing network. Management said the savings will be reinvested in newer products and its research pipeline. Merck reiterated that Gardasil shipments to China, halted in January, will remain suspended through at least the end of 2025 and kept its estimate of tariff-related costs at about $200 million. The company narrowed its full-year 2025 outlook to $64.3-$65.3 billion in revenue and $8.87-$8.97 in non-GAAP earnings per share. Investors responded to the weaker vaccine sales and restructuring announcement by pushing the shares down more than 3 % in morning trading on 29 July.