Merck & Co. and AstraZeneca suffered notable losses in China during the fourth quarter. Astellas shuffled its C-suite and revealed a slowdown for its newly launched eye disease med Izervay. Plus more.
1. Merck halts Gardasil shipments to China, withdraws $11B sales target as demand nosedives
In a surprise announcement, Merck & Co. said it’s halting shipments of its HPV vaccine Gardasil to China so that the company and its local partner, Chongqing Zhifei Biological Products, can work to clear out excess inventory. While Gardasil’s slowdown in China has been a known problem since last summer, the delivery halt—and an 18% global sales decline for the vaccine in the fourth quarter—led to a sharp decline in Merck's share price.
2. AstraZeneca warns of potential tax fines amid China sales slowdown, illegal drug importation probe
AstraZeneca warned that it could be fined over unpaid importation taxes in China. The case is related to the firm's immunotherapy duo of Imfinzi and Imjudo, and CEO Pascal Soriot said it may expand to Enhertu. Amid ongoing investigations by Chinese authorities, AZ recorded a 3% sales decrease in the country in the fourth quarter at constant exchange rates. While this marked a slowdown compared with prior quarters, investors had feared far worse.
3. Astellas fires CSO and chief manufacturing officer in C-suite shake-up
Astellas is reworking its C-suite. Current Chief Medical Officer Tadaaki Taniguchi, M.D., Ph.D., is moving to a newly created role of chief research and development officer, while the company's chief scientific officer title is being eliminated. The baton of chief manufacturing officer is being passed from Hideki Shima to Rao Mantri, while General Counsel Catherine Levitt is making way for current head of ethics and compliance, Tatjana Dragovic, to serve in a newly created combined role.
4. Astellas takes $760M charge, reveals slowdown for eye drug Izervay after regulatory stumbles
Meanwhile, Astellas’ key launch of the geographic atrophy drug Izervay hit a significant slowdown, posting sequential sales growth of just 4% in the fourth quarter compared with 26% in the prior quarter. Astellas suggested the rollout suffered a “temporary impact” from the FDA’s recent rejection of a label update. After that, some doctors paused Izervay use for patients who’ve taken the drug for 12 months, which is recommended under the current label.
5. UPDATED: Trump to impose tariffs on Canada, Mexico, China; industry lobbies for medtech exemptions
Trump tariffs threaten US drug supplies and risk higher prices, trade groups warn
Illumina caught in tariff crossfire as China retaliates
The Trump administration has imposed new tariffs against China. About 75% of medical devices marketed in the U.S. are foreign-made, with China being a top producer. The policy could also pressure pharmaceutical supply chains, raising medical costs and potentially driving manufacturers away, the Healthcare Distribution Alliance warned. Shortly after the tariffs went into effect, China retaliated with its own tariffs and put Illumina on its “unreliable entity list,” which opens the DNA sequencing giant to potential sanctions and restrictions.
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8. Merck vaccine, Daiichi ADC win approval recommendations in busy week at EU's drug regulator
9. Pfizer axes B7-H4 ADC, triggering $1B impairment charge as blockbuster vision evaporates