Merck Shares Plummet Amid Gardasil Decline in China

Merck & Co faced significant investor concerns after announcing a decline in Gardasil vaccine shipments in China during the second quarter. Despite strong growth from other drugs like Keytruda, Merck's shares plunged over 9%. The decline is attributed to China's anti-bribery drive impacting vaccine distribution.

Merck & Co reported a decline in Gardasil vaccine shipments in China during the second quarter, leading to a sharp drop in its shares by over 9% on Tuesday. Gardasil, which combats cancer caused by the human papillomavirus, has been a significant growth driver for Merck, especially in the Chinese market.

Over the past few years, sales of Gardasil have more than doubled, with projections nearing $10 billion for this year. However, Merck is now investigating the reasons behind the decreased shipments from its distributor Zhifei to vaccination centers in China.

CEO Rob Davis pointed out that China's recent anti-bribery and anti-corruption efforts could have impacted the HPV vaccine sector, starting last year. This campaign has disrupted business and deals with hospitals, affecting international pharmaceutical companies. Despite this, Merck's quarterly revenues reached $16.1 billion, bolstered by strong Keytruda sales.