| COMPANY |
Merck & Co., Inc. |
| COURT |
United States District Court for the District of New Jersey |
| CASE NUMBER |
2:25-cv-01208 |
| JUDGE |
The Hon. Julien Xavier Neals |
| CLASS PERIOD |
February 3, 2022 through February 3, 2025 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS APRIL 14, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
A class action lawsuit was filed on behalf of those who purchased or otherwise acquired Merck & Co., Inc. (“Merck”) (NYSE: MRK) securities between February 3, 2022, and February 3, 2025, inclusive (the “Class Period”).
The Class Period begins on February 3, 2022. On that day, Merck conducted an earnings call in connection with its fourth quarter and full-year fiscal 2021 results, where the company first forecasted $11 billion in Gardasil sales by the year 2030. Specifically, Merck stated that “[W]e have many important franchises beyond oncology that we expect can drive durable growth into the next decade, including GARDASIL, which we believe can potentially double by 2030.”
On April 28, 2022, Merck published its first quarter fiscal year 2022 results and held a corresponding earnings call wherein the company highlighted the success of Gardasil and its future prospects. Specifically, Merck touted that “Global demand for GARDASIL remains strong and growth will benefit from increased supply as a result of the significant investments we are making to expand manufacturing capacity,” and that “Our vaccines portfolio again delivered excellent performance led by GARDASIL, which increased 60% to $1.5 billion. Outside the U.S., significant growth was driven by strong underlying demand across key geographies, particularly China as well as increased supply. In the U.S., sales increased due to the timing of CDC purchases.”
On July 30, 2024, Merck issued a press release announcing its financial results for the second quarter of 2024 and held an associated earnings call. Among other items, Merck announced a significant reduction in demand in China for its HPV vaccination Gardasil, resulting in higher than normal inventory levels at Merck's distributor in China. Accordingly, Merck advised that shipments of Gardasil to China might fall below contracted levels for 2024. On this news, Merck's stock price fell $12.53 per share, or 9.81%, to close at $115.25 per share on July 30, 2024.
Then, on February 4, 2025, Merck announced that it would no longer achieve the long-forecasted target of $11 billion in Gardasil sales by 2030, as the company planned to cease Gardasil shipments to China "through at least midyear" to facilitate a "rapid reduction of inventory." On this news, Merck's stock price fell $9.05 per share, or 9.07%, to close at $90.74 per share on February 4, 2025.
The complaint alleges that, throughout the Class Period, Defendants provided these overwhelmingly positive statements to investors about expected revenue of $11 billion from sales of Gardasil by 2030 while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Gardasil's demand in China; notably, that Merck lacked visibility into demand for Gardasil in China among eligible and otherwise targeted populations, resulting in the inflated inventory of its distributor, Zhifei.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.