Merck lowers profit outlook, partly due to $200 million expected tariff hit

Merck lowered its full-year profit guidance, citing a charge tied to a recent licensing deal and $200 million in estimated additional costs for tariffs implemented to date.

The drugmaker also reported first-quarter revenue and profit that beat expectations, citing strength in its oncology portfolio and animal health products.

The company said the expected tariff charge primarily reflects levies between the U.S. and China , but does not account for President Donald Trump 's planned duties on pharmaceuticals.

Merck also cited "increasingly meaningful" sales contributions from two recently launched drugs.

Some experts said China 's tariffs on U.S. products could lead to increased prices or limited supply of some popular Western medicines for Chinese patients, Reuters reported. Merck 's animal health division, which develops vaccines and medicines for dogs, cats and cattle, posted nearly $1.59 billion in sales, up 5% from the same period a year ago . The company said higher demand for livestock products and sales from Elanco 's aqua business, which it acquired last year , drove that growth..