BRIEF-Merck Says Discretionary Consumer Spending In China Is Under Increased Pressure

Feb 4 (Reuters) - Merck & Co Inc MRK.N:

• MERCK & CO SAYS DISCRETIONARY CONSUMER SPENDING IN CHINA UNDER INCREASED PRESSURE, INCLUDING ACROSS THE VACCINE SPACE - PREPARED REMARKS

• MERCK SAYS DEMAND FOR GARDASIL HAS NOT RECOVERED IN CHINA AND OVERALL CHANNEL INVENTORY THERE REMAINS ELEVATED AT ABOVE NORMAL LEVELS

• MERCK EXPECTS TO DELIVER STRONG GROWTH IN THE SECOND HALF OF THIS YEAR, AS WELL AS IN BOTH 2026 AND 2027 - PREPARED REMARKS

• MERCK SAYS 2025 GUIDANCE FOR GARDASIL IN CHINA ASSUMES NO FURTHER SHIPMENTS AT THE LOW-END AND LESS THAN $1 BILLION AT THE HIGH-END

• MERCK SAYS WITHDRAWING $11 BILLION TARGET FOR GARDASIL "GIVEN THE UNCERTAIN TIMING OF AN ECONOMIC RECOVERY IN CHINA"

• MERCK EXPECTS MEDICARE PART D REDESIGN TO HAVE NEGATIVE IMPACT TO SALES OF ABOUT $400 MILLION, MAINLY AFFECTING WINREVAIR, SMALL MOLECULE ONCOLOGY PRODUCTS

• MERCK SAYS ITS CAPITAL ALLOCATION STRATEGY REMAINS UNCHANGED

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