Merck (NYSE:MRK) shares descended on Thursday, after the company lowered its full-year profit guidance, citing $200 million in estimated costs for tariffs and a charge tied to a recent deal.
The company now expects its 2025 adjusted earnings to come in between $8.82 and $8.97, down slightly from a previous outlook of 8.88 to $9.03 per share.
The company said the expected tariff charge primarily reflects levies between the U.S. and China, and Canada and Mexico to a lesser degree. Merck has built a robust presence in China, which is considered one of the company’s most important markets and is home to some of its partners and manufacturing and research and development sites.
Merck noted that the new outlook does not account for President Donald Trump’s planned tariffs on pharmaceuticals imported into the U.S., which is prompting some drugmakers to bolster their U.S. manufacturing footprints.
That includes Merck, which has invested $12 billion in U.S. manufacturing and research and development and expects to put more than $9 billion more into the country by the end of 2028.
But the guidance does include a one-time charge of roughly 6 cents per share related to the company’s license agreement with Hengrui Pharma, which it announced in March.
Merck reiterated its full-year sales forecast of between $64.1 billion and $65.6 billion.
MRK shares dropped $1.67, or 2.1%, to $77.07.