Strong Q2 Revenue Performance: Merck reported Q2 2025 revenue of $15.8 billion, reflecting a 2% decrease year-over-year. The decline was primarily attributed to a $1.3 billion drop in GARDASIL sales in China, which impacted growth by approximately 9 percentage points. Excluding this factor, global growth was 7%, driven by strong demand in oncology and Animal Health sectors, along with new product launches like WINREVAIR and CAPVAXIVE.

Positive Outlook for Second Half of 2025: Management expressed confidence in returning to growth for the second half of the year, particularly due to ongoing strength in oncology and Animal Health. They have reiterated their full-year revenue guidance of $64.3 to $65.3 billion, indicating a slight growth trajectory of 1-2%, excluding the negative impact from foreign exchange.

Expansion of Pipeline and Acquisitions: Merck is actively augmenting its pipeline, highlighted by the acquisition of Verona Pharma, which will introduce Ohtuvayre, a new treatment for COPD. The company's R&D efforts have led to over 80 ongoing Phase III studies and promising early-stage products, which could represent key future growth drivers.