Merck (MRK), AbbVie (ABBV) Probed Over China Military Trials

Merck & Co. (NYSE:MRK), the New Jersey pharmaceutical giant behind blockbuster oncology drug Keytruda and a broad vaccines and animal health portfolio, is facing a congressional inquiry into its Chinese clinical trial network, a development that lands just as the stock trades near its 52 week high of 130.29 dollars. Shares closed at 128.5 dollars, down 0.68% on the day the news spread, still leaving Merck within striking distance of that ceiling and far above its 52 week low of 107.9 dollars.

At a Glance

• Price: 128.5 USD, down 0.68% on the day
• 52 week range: 107.9 to 130.29 USD
• Market cap: 317.77 billion USD
• P/E ratio: 35.99, EPS implied by trailing earnings
• Dividend yield: 2.65%, RSI at 68.01

What the Congressional Letters Allege

Rep. John Moolenaar, the Michigan Republican who chairs the House Select Committee on China, sent dated letters this past Monday to Merck and AbbVie demanding a full accounting of their Chinese trial operations by July 17. The committee wants details on how each company screens trial sites, secures patient data, and enforces safety protocols, with particular attention paid to facilities in Xinjiang and hospitals affiliated with China's military establishment.

The panel's own research ties Merck to 224 clinical studies conducted in China since 2005. Of those, at least 31 occurred in Xinjiang and 40 took place at sites connected to the People's Liberation Army medical system. AbbVie's footprint is smaller but not negligible: more than 100 studies since 2007, including at least 17 in Xinjiang and 16 at military linked institutions.

The letters, addressed directly to Merck chief executive Robert Davis and AbbVie chief executive Robert Michael, stop short of accusing either company of breaking any law. They instead frame the exposure as a dual risk: an ethical one tied to Xinjiang, which the committee describes as the epicenter of Beijing's campaign against Uyghur and other minority populations, and a security one tied to intellectual property. As the letters put it, research conducted at PRC military hospitals could expose