Merck’s Vaccine Win Fails to Lift Stock as UK Research Center Scrapped

Merck & Co. closed at $85.15 on September 11, 2025, marking a 1.33% gain despite year-to-date underperformance. The uptick followed positive Phase 3 results for CAPVAXIVE, a pneumococcal vaccine poised to offset declining revenues from KEYTRUDA and GARDASIL.

Investors remain cautious as shares trade 21.8% below consensus targets. The disconnect between clinical success and market performance reflects broader sector pressures, compounded by Merck's decision to abandon a £1bn UK research facility—cutting 125 jobs amid dwindling life sciences investment.

Industry group ABPI warns the UK risks losing competitiveness without stronger policy support. While Merck's pipeline shows promise, the stock's 12.8% YTD decline contrasts sharply with the S&P 500's 12% gain, highlighting pharma's challenging macro environment.