Merck's Newer Medicines Are Growing, but Gardasil Still Matters

Merck is building a broader growth story around newer medicines, but its vaccine franchise has not become irrelevant. In the second quarter of 2026, Gardasil generated $1.2 billion in sales, still more than either Winrevair or Capvaxive despite the company's increasing emphasis on recent launches.

The latest official results show why management's message has shifted. Winrevair, a treatment for pulmonary arterial hypertension, produced $588 million of second-quarter sales, up 75% from a year earlier. Capvaxive, Merck's pneumococcal vaccine, generated $184 million, up 40%. The Food and Drug Administration also approved Lipfendra in July as the first once-daily oral PCSK9 inhibitor for reducing LDL cholesterol in eligible adults.

Those figures correct a timing problem in the source comparison. The $525 million Winrevair and $142 million Capvaxive numbers cited there were first-quarter results, not second-quarter sales. Comparing periods consistently matters because the diversification thesis depends on the pace of adoption.

Gardasil's second-quarter sales rose 3% excluding currency effects after severe weakness in China had weighed on prior periods. That is an improvement, but it does not remove geographic and channel risk. Merck still needs newer products to grow quickly enough to offset volatility in Gardasil and the eventual loss of exclusivity for Keytruda, its dominant cancer medicine.

Pipeline progress provides support, not certainty. Positive late-stage results and new approvals can widen the revenue base, but launches also require reimbursement, physician adoption and commercial execution. Acquisition charges can further obscure near-term margins, as seen when Merck adjusted guidance after agreeing to buy Terns Pharmaceuticals.

The next quarterly report should be judged on consistent metrics: Gardasil's year-over-year trend, Winrevair and Capvaxive sequential growth, early Lipfendra launch indicators and any updated development timeline for oncology assets. Merck's story is becoming more diversified, but the numbers show the transition is still underway rather than complete.

That distinction keeps the investment case grounded in reported product sales rather than presentation emphasis alone.