01:33 PM EDT, 07/29/2025 (MT Newswires) -- (Updates with latest stock movement and additional details in the first and second paragraph.)

Merck ( MRK ) shares were down 3.2% in recent Tuesday trading after the company announced a multiyear optimization program, lower Q2 results and a decline in Gardasil sales.

Merck ( MRK ) reported that Q2 sales of its Gardasil and Gardasil 9 vaccines fell 55% year-over-year to $1.13 billion, driven mainly by weaker demand in China. Excluding China, sales dropped 3%, or 4% after adjusting for foreign exchange, due to reduced demand in Japan, it said.

The company said its optimization initiative, which targets to generate $3 billion in annual cost savings by the end of 2027, includes a restructuring program that will see Merck ( MRK ) eliminate certain administrative, sales, and R&D positions., while continuing to hire staff into new roles across growth areas of the business.

Merck ( MRK ) said it will reinvest its savings into new product launches and its drug development pipeline.

The optimization plan also includes reducing Merck's ( MRK ) global real estate footprint and adjusting its manufacturing network to match customer locations and business needs, according to the company.

Additionally, the company reported Q2 non-GAAP earnings of $2.13 per diluted share and sales of $15.81 billion, down from $2.28 and $16.11 billion respectively a year earlier. Analysts surveyed by FactSet expected earnings of $2.02 per share and sales of $15.9 billion.

Price: 81.36, Change: -2.70, Percent Change: -3.21