Merck & Co., Inc. (NYSE: MRK), headquartered in Rahway, New Jersey, reported Q2 2025 revenue of $15.8 billion, down 2% year-over-year, as oncology and animal health growth offset a severe collapse in Gardasil sales in China. Keytruda, the company’s flagship immuno-oncology asset, delivered $8.0 billion (+9% YoY), now representing more than 45% of pharmaceutical revenue. The FDA approval of Keytruda QLEX™, a subcutaneous reformulation enabled by Alteogen’s ALT-B4 enzyme, was the quarter’s most significant milestone, strategically extending the drug’s life cycle into the mid-2030s and potentially adding $15–20 billion in incremental exclusivity-driven revenue.

Animal Health delivered 11% growth ($1.6B), reinforcing its role as a diversification pillar, while vaccines contracted sharply (−55% Gardasil), exposing geographic concentration risks. The Trump administration’s MAHA vaccine policy further complicates Merck’s outlook, as liability exposure, regulatory volatility, and weakening public trust threaten long-term demand in the U.S.

Strategically, Merck is navigating a dual reality: defending Keytruda against an approaching patent cliff while diversifying into cardiopulmonary and metabolic franchises. WINREVAIR surpassed $1 billion in cumulative sales within 15 months of launch, and the pending $10B Verona Pharma acquisition (Ohtuvayre for COPD) signals a determined push into chronic respiratory care. The oral PCSK9 inhibitor enlicitide and the once-monthly oral PrEP MK-8527 represent credible attempts to expand Merck’s footprint beyond oncology.

The central question for investors remains whether Merck can convert its breadth of late-stage programs into durable revenue streams before Keytruda biosimilars emerge post-2030. The company frames this challenge not as a cliff but as a calibrated hill—an assessment that hinges on rapid adoption of subcutaneous Keytruda and flawless execution across its diversification strategy.

This confidential-level report provides a high-density structural and symbolic assessment of South Korea's economic positioning during Q2 2025. Developed using proprietary BBIU methodologies, it unpacks the hidden fractures in Korea’s trade architecture, geopolitical alignment, and export vulnerabilities.

Includes forward-looking analysis of:
– U.S.–Japan bilateral pact implications
– Semiconductor overcapacity risks
– Strategic FDI shifts post-IRA
– Symbolic erosion under CHIPS guardrails
– Projected Q3 vulnerabilities and divergence scenarios