The 5 Most Interesting Analyst Questions From Merck's Q1 Earnings Call

Merck’s first quarter results drew a positive market reaction, reflecting operational resilience despite a 1.6% year-over-year revenue decline. Management identified continued strength in the oncology portfolio, especially KEYTRUDA and Welireg, alongside growth from new product launches like WinRevair and Cafaxib, as pivotal to performance. CEO Rob Davis cited “increasing contributions from our newer commercialized medicines and vaccines and continued advancement of our pipeline.” Merck also managed through significant declines in Gardasil sales in China, emphasizing that underlying global demand outside China remained robust.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Merck’s Q1 Earnings Call

• Geoff Meacham (Citi): Asked how Merck plans to offset tariff headwinds. CEO Rob Davis explained supply chain restructuring and inventory management, emphasizing moves to “U.S. for U.S.” manufacturing over price increases.
• Tim Anderson (Bank of America): Inquired about providing long-term guidance beyond KEYTRUDA’s patent expiry. Davis reiterated confidence in the pipeline’s potential but signaled no immediate plans for detailed long-term projections.
• Luisa Hector (Berenberg): Questioned the impact of FDA and HHS changes on vaccine approvals. Dr. Dean Li stated that near-term regulatory timelines remain on track, with no delays observed despite agency personnel transitions.
• Steve Scala (TD Cowen): Sought clarification on Gardasil’s global growth outlook and long-term targets. CFO Caroline Litchfield noted the end of Japan’s catch-up program and ongoing China headwinds, confirming the previous $11 billion Gardasil target has been withdrawn.
• Akash Tewari (Jefferies): Asked about the severity and impact of potential new tariffs. Davis declined to speculate on tariff rates but stressed Merck’s preparedness through operational and manufacturing adjustments.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch for (1) key data releases from late-phase clinical trials, especially in oncology and cardiovascular programs, (2) the impact of supply chain moves and tariff mitigation on cost structure, and (3) trends in Gardasil and other vaccine uptake outside China. Developments around regulatory filings and ACIP recommendations for vaccines will also be important markers to assess execution and pipeline momentum.

Merck currently trades at $79.48, in line with $78.70 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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