Merck Halts HPV Vaccine Supply to China Until Mid 2025 Amid Weak Demand

On February 4, Merck announced a suspension of its HPV cervical cancer vaccine supply to the Chinese market, a halt that will last at least until mid-2025. The decision comes in response to weak demand for the HPV vaccine in China, prompting the company to temporarily stop shipments to accelerate inventory consumption. Following this announcement, Merck's stock price fell by 9.07%.

Just recently, Merck's HPV vaccine received approval from the National Medical Products Administration for several new indications, making it the first and currently the only HPV vaccine approved for use in males aged 9 to 26 in China.

The HPV vaccine is one of Merck's key growth drivers, alongside its cancer drug Keytruda. However, since the second quarter of 2024, sales of the vaccine in China have significantly slowed. Previously, much of the international market growth for this vaccine was driven by demand from China. In the fourth quarter of 2024, Merck reported $1.55 billion in HPV vaccine sales, a decline of approximately 17% compared to the same period last year.

On February 5, Merck exclusively told Caixin that due to the overall market environment, weak consumer demand, and high channel inventory, the company has engaged in in-depth discussions with its local partner Zhifei Biological. They have decided to adjust the shipment pace to the Chinese market based on dynamic consumer demand, with a gradual return to normalcy expected by mid-year.

Merck stated that this move will help optimize inventory management and strengthen the foundation for long-term collaboration with key local partners. China remains a core strategic market for Merck's HPV vaccine growth. There is still significant immunization demand among eligible female populations and the recently approved male demographic. Merck maintains strong confidence in the potential of the Chinese market and reaffirms its commitment to patients and consumers while actively planning for the future.