Merck & Co., Inc. (NYSE:MRK) reported second-quarter revenue of $16.6 billion, up 5% from a year earlier, driven by oncology, animal health and contributions from newer product launches. Revenue increased 4% excluding foreign exchange, according to Chief Financial Officer Caroline Litchfield.
The company reported a loss of $0.13 per share for the quarter, reflecting a $2.31-per-share one-time charge tied to its acquisition of Terns Pharmaceuticals. Merck completed the Terns acquisition during the quarter, adding MK-4208, a late-stage candidate for certain patients with chronic myeloid leukemia. The acquisition generated a $5.7 billion charge in the quarter.
Oncology Remains the Largest Growth Driver
Sales from the KEYTRUDA family, including KEYTRUDA and KEYTRUDA QLEX, rose 4% to $8.4 billion. Litchfield said growth was driven by uptake in earlier-stage cancers, continued demand in metastatic indications, use in breast and cervical cancers, and increased utilization of KEYTRUDA with PADCEV in locally advanced or metastatic urothelial cancer.
KEYTRUDA QLEX generated $463 million in sales during the quarter. The company said adoption by physicians and patients has increased since a permanent J-code was established in April, with early use concentrated among patients receiving monotherapy or treatment in combination with an oral agent.
WELIREG sales increased 67% to $271 million, supported by international launches and increased use among certain U.S. patients with previously treated advanced renal cell carcinoma. Merck also cited recent FDA approvals for KEYTRUDA- and WELIREG-based regimens in earlier-stage kidney cancer and bladder cancer.
Research Laboratories President Dean Li said the company’s sac-TMT antibody-drug conjugate produced positive Phase III results in the TroFuse-005 study for certain patients with advanced or recurrent endometrial cancer. The candidate improved overall survival and progression-free survival compared with chemotherapy, according to Merck. The company plans to use a National Priority Review voucher for a potential filing in endometrial cancer.
During the question-and-answer session, Li said Merck plans to move quickly on studies evaluating sac-TMT combinations in lung cancer, including trials that could transition seamlessly from Phase II to Phase III. He said the company is assessing how to use KEYTRUDA and other immunotherapy assets in those combinations.
New Product Launches Add to Sales
Merck highlighted continued uptake of several newer medicines. WINREVAIR sales rose 75% to $588 million, reflecting demand among adults with pulmonary arterial hypertension. In the U.S., more than 1,800 new patients had received a prescription, Litchfield said.
OHTUVAYRE sales totaled $204 million, helped by prescription demand from patients with chronic obstructive pulmonary disease and the timing of specialty-pharmacy purchases. Merck cautioned that third-quarter OHTUVAYRE sales will be affected by the reversal of specialty-pharmacy purchases recorded in the second quarter. The company said it is investing in sales force expansion, promotion and patient-experience improvements, with the goal of accelerating growth in 2027.
GARDASIL sales increased 3% to $1.2 billion. International sales grew 6%, while U.S. sales were roughly flat, as lower demand and the timing of Centers for Disease Control and Prevention purchases were largely offset by pricing. CAPVAXIVE sales rose 40% to $184 million, led by international launch uptake and increased U.S. demand.
Merck also launched Edvinzo, a once-daily, two-drug oral tablet regimen of doravirine and islatravir for certain virologically suppressed adults with HIV. The company said it has seen encouraging early access and reimbursement progress.
LIPFENDRA Approval Expands Cardiometabolic Portfolio
The FDA approved LIPFENDRA, which Merck described as the first approved oral PCSK9 inhibitor for reducing LDL cholesterol in adults with hypercholesterolemia when used with diet and exercise. Li said the drug achieved up to a 60% reduction in LDL cholesterol when added to a statin in the CORALreef Lipids trial.
Chief Executive Officer Rob Davis said Merck expects market access to take time but views LIPFENDRA as a potential blockbuster opportunity. He said the company’s strategy is focused on expanding use of LDL-lowering therapies rather than taking share solely from injectable PCSK9 products. Davis noted that Merck estimates 30 million people in the U.S. are receiving lipid-lowering therapies but remain above recommended LDL levels.
Merck is pursuing regulatory reviews for LIPFENDRA in the European Union and China and is studying fixed-dose combinations with rosuvastatin and MK-7262, its oral Lp(a) inhibitor. The company’s ongoing cardiovascular outcomes trial is expected to read out in 2029.
Pipeline Updates and Outlook
In immunology, Merck reported that tulisokibart met its primary endpoint of clinical remission and key secondary endpoints in an induction-only Phase III trial in moderately to severely active ulcerative colitis, with no new safety concerns identified. A larger induction-and-maintenance study is expected to provide the second part of a potential regulatory filing package.
The company said a Phase II study in hidradenitis suppurativa met its primary and key secondary endpoints, while a study in systemic sclerosis-associated interstitial lung disease did not meet its primary endpoint. Li said Merck continues to see potential for the TL1A-targeting program across gastrointestinal, dermatology and rheumatology indications.
Merck and Gilead Sciences presented Phase III results for investigational once-weekly oral islatravir and lenacapavir, which maintained viral suppression among adults with HIV who switched from daily standard-of-care treatment. Merck also plans to advance an islatravir and ulonivirine regimen into Phase III trials.
For MK-1406, an investigational long-acting, strain-agnostic influenza prevention treatment, Merck will continue its Phase III study through a second Northern Hemisphere flu season. Li said the move is intended to strengthen global regulatory submissions and does not reflect a change in confidence or the company’s anticipated 2029 approval timeline.
Davis said the company remains confident that its post-KEYTRUDA loss-of-exclusivity period will be “more of a hill than a cliff,” anticipating a shallow decline followed by a return to growth. Merck has previously outlined more than $70 billion in commercial opportunity from over 20 prospective new products.
About Merck & Co., Inc. (NYSE:MRK)
Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.
Founded in the late 19th century as the U.S.
