Merck & Co. has committed $30 million in partnership with the Coalition for Epidemic Preparedness Innovations (CEPI) to develop an updated Ebola vaccine formulation optimized for low- and middle-income countries. The program will fund process improvements, technology transfers and regional manufacturing capabilities in Africa and Southeast Asia. Merck aims to reduce per-dose production costs by at least 40% versus its current Ervebo vaccine, targeting a price point below $50 per dose. This initiative builds on Merck’s long-standing immunization expertise and strengthens its global health profile, positioning the company for potential additional contracts with Gavi and the World Health Organization’s emergency stockpile.

Merck projects that Q4 vaccine revenues will be pressured by continued weakness in Gardasil sales in China and Japan, where quarterly unit volumes fell by an estimated 35% and 30% year-over-year, respectively. Earlier this month, management signaled a potential $200 million revenue shortfall in the vaccine division, driving consensus earnings-per-share estimates down by $0.05 for fiscal 2025. Analysts at Bernstein and Cowen have cut their full-year revenue forecasts for Merck’s overall vaccine business by 8% to reflect the persistent headwinds in Asia, noting that broader product uptake and reimbursement challenges could delay a recovery until mid-2026.