Merck & Co., Inc. (MRK): PESTLE Analysis [Nov-2025 Updated]

You're looking at Merck & Co., Inc. (MRK) and trying to figure out where the smart money goes next, right? Honestly, the biggest forces shaping Merck in 2025 aren't just in the lab; they're in Washington and Brussels. The immediate challenge is the U.S. Inflation Reduction Act (IRA), which is starting to bite into pricing power, especially as the company prepares for the eventual patent cliff of its cash-cow, Keytruda (pembrolizumab). This drug alone is projected to account for a huge chunk of revenue, making the political risk massive. But, the technological upside-driven by significant investment in mRNA and AI for drug discovery-offers a clear path to replace that revenue. It's a race between legislative pressure and pipeline innovation, and the clock is ticking.

Merck & Co., Inc. (MRK) - PESTLE Analysis: Political factors

US Inflation Reduction Act (IRA) drug price negotiations starting

The US Inflation Reduction Act (IRA) is the single largest political risk factor for Merck & Co., Inc. in the near term, fundamentally changing the Medicare pricing landscape. The first wave of negotiations, which concluded in 2024, resulted in significant price cuts that will take effect in 2026. Merck's diabetes blockbuster, Januvia, was on that initial list of 10 drugs, and the negotiated price is set to reduce its 2026 list price by a dramatic 79% from its 2023 cost of $527.

For 2025, the Centers for Medicare & Medicaid Services (CMS) is preparing the second round, which will target up to 15 additional high-cost Part D drugs, with prices taking effect in 2027. Analysts project that Merck's combination diabetes drug, Janumet, is a likely candidate for this second selection list, which is announced in February 2025. This ongoing negotiation process is expected to save Medicare an estimated $6 billion in prescription drug costs based on 2023 spending, plus save Medicare enrollees around $1.5 billion in out-of-pocket costs in 2026 alone.

Merck is not sitting still; the company deployed $2.6 million on in-house lobbying in the first quarter of 2025, specifically targeting IRA reforms and other drug pricing legislation. The IRA's impact is real and immediate, but the long-term effect is still being litigated and lobbied. It's a direct, measurable headwind for US revenue.

Increased global scrutiny on pharmaceutical pricing transparency

Beyond the IRA, a worldwide political push for pharmaceutical pricing transparency is tightening the noose on global profit margins. The US government is now actively implementing a Most-Favored-Nation (MFN) pricing executive order in 2025, which aims to align US drug prices with the lowest prices paid in a basket of comparable OECD nations (Organisation for Economic Co-operation and Development).

This policy, which could force price reductions of up to 90% for certain products, is designed to end global freeloading on American-financed innovation. Meanwhile, at the state level, Prescription Drug Affordability Boards (PDABs), like the one in Colorado, are gaining authority to set upper payment limits, creating a patchwork of price controls across the US.

In Europe, the trend is similar: the EU is strengthening collective negotiation through initiatives like BeNeLuxA (Belgium, Netherlands, Luxembourg, Austria, Ireland), which increases payer leverage. Furthermore, new EU requirements mandate the disclosure of net prices and rebate structures, essentially ending confidential pricing strategies. The US also now requires hospitals, effective January 1, 2025, to publish machine-readable files detailing drug charges, including the Payer-Specific Negotiated Charge.

This is a global race to the bottom on price, honestly.

Geopolitical tensions affecting global supply chain stability

Geopolitical tensions are translating directly into higher operating costs and supply chain risk for Merck. The primary concern in 2025 is the US administration's new trade policies, which are imposing broad tariffs on imports.

Specifically, a 55% consolidated tariff on Chinese imports came into effect on June 11, 2025, and in July 2025, the US announced new tariffs on pharmaceutical imports from over 150 countries, including major suppliers like India and China. Initial rates range from 20% to 40% and could rise as high as 200% over time, directly increasing the cost of Active Pharmaceutical Ingredients (APIs).

The instability is also raising raw material costs: steel and aluminum tariffs were raised from 25% to 50% in June 2025, impacting the cost of stainless-steel bioprocessing equipment. Plus, the Israel-Iran conflict in June 2025 amplified energy shocks, causing Brent crude prices to surge to approximately $74/barrel (a 16.9% month-over-month increase from May 2025), which reintroduces inflationary pressure on polymer feedstocks critical for single-use bioprocessing systems.

Here's the quick math on the tariff impact:

Government funding priorities for public health initiatives

Shifting government priorities in major markets create both risk and opportunity, particularly in the global health and R&D funding space. The US is undergoing a policy shift inward, with the reinstatement of the Mexico City policy (global gag rule) in January 2025.

This inward focus is reflected in budget projections: US funding for global health programs is anticipated to decrease by 62%, a drop of $6.2 billion, from $10 billion in FY 2025 to just below $3.8 billion for FY 2026. This massive cut, which drove a 21% decline in total Development Assistance for Health (DAH) between 2024 and 2025, impacts regions heavily reliant on US aid, such as sub-Saharan Africa, where Merck has vaccine and infectious disease interests.

Conversely, other regions are stepping up:

• The European Union launched the Choose Europe initiative in May 2025, committing €500 million from 2025 to 2027 to attract international scientists and researchers, potentially boosting the EU's biotech sector.
• China's Draft 2025 Budget increases central government subsidies for basic public health services to RMB 99 (US$13.69) per person annually and boosts subsidies for urban and rural residents' health insurance to RMB 700 (US$96.78) per person per year, signaling a strong domestic focus on healthcare access.

Merck must defintely adjust its global market access and R&D strategy to align with these diverging national funding priorities, shifting focus and investment to where governments are spending, not just where they are cutting. The US is pulling back on global health, but China and the EU are doubling down on domestic health and R&D infrastructure.

Merck & Co., Inc. (MRK) - PESTLE Analysis: Economic factors

The economic environment in 2025 presents a complex mix of inflationary pressures and currency volatility that directly impact Merck & Co., Inc.'s (MRK) margins, even as core demand for its innovative portfolio remains strong. You need to focus on managing your cost base and hedging currency exposure, because external forces are eating into your bottom line.

Sustained high inflation impacting R&D and manufacturing costs

Sustained inflation is driving up the cost of nearly every input Merck uses, from raw materials to labor. This pressure is acute in manufacturing, where high energy and logistics costs squeeze margins. The pharmaceutical industry is seeing increased expenses for raw materials, including Active Pharmaceutical Ingredients (APIs), which are often sourced globally. R&D spending, while strategically necessary, is also subject to these rising costs, complicating the economics of drug development.

Here's the quick math on the cost side:

• Q1 2025 R&D expenses were $3.6 billion, and Q3 2025 R&D expenses were $4.0 billion, demonstrating Merck's continued, massive investment in its pipeline.
• Merck's 2025 guidance already factors in approximately $200 million in additional costs due to tariffs implemented to date, primarily between the U.S. and China, which directly impacts the gross margin assumption of approximately 82.0%.
• Globally, pharmaceutical manufacturers face cost increases in energy and logistics, which makes maintaining a competitive cost of goods sold (COGS) a defintely tough challenge.

Strong US dollar creating foreign currency translation headwinds

A strong US dollar is a significant headwind for any US-based multinational company like Merck, which generates a substantial portion of its revenue internationally. When foreign sales are translated back into US dollars, their value is reduced. This is a straightforward currency risk that you must actively manage.

The company's 2025 financial guidance clearly quantifies this headwind:

The FX impact of approximately $0.15 per share on non-GAAP EPS is a material drag on profitability, forcing Merck to rely on strong organic volume growth from key products like KEYTRUDA and new launches like WINREVAIR to offset the currency loss.

Global recession fears potentially limiting patient access and payer budgets

While the pharmaceutical industry is often considered recession-resistant, a global economic slowdown or recession-which Goldman Sachs put at a 45% chance in the next 12 months as of April 2025-can still limit growth. A recession affects patient access in two ways: it limits consumer-driven spending, and it tightens government and private payer budgets.

• Payer Budget Squeeze: Economic uncertainty increases pressure on government and private payers to contain costs, which directly impacts drug reimbursement negotiations.
• Patient Access Risk: For drugs with high out-of-pocket costs, like some specialty therapies, patient affordability becomes a greater barrier, potentially leading to lower adherence or delayed treatment initiation.

This risk is particularly relevant for Merck's specialty portfolio, where high-cost treatments are the primary growth drivers. You cannot assume a total insulation from economic downturns this time around.

Focus on cost-effectiveness for new drug approvals by payers

The most significant structural economic trend is the intense, unwavering focus by payers on cost-effectiveness and value-based purchasing. Payers are no longer simply covering new drugs; they are demanding proof of value relative to existing treatments, especially for high-cost specialty drugs in areas like oncology, which is Merck's main revenue driver with KEYTRUDA.

The data confirms this shift:

• Specialty Drug Priority: A survey showed that 80% of payers cite managing specialty drug costs as their top goal for 2025.
• Utilization Management: Payers are increasingly using tools like prior authorization (used by 58% of plans), quantity limits (41%), and step therapy (58%) to manage medical benefit drugs like oncology therapies.
• Policy Impact: The U.S. Inflation Reduction Act (IRA) of 2022, which allows the federal government to negotiate a maximum fair price for selected Medicare drugs, is fundamentally reshaping the market economics for new drug launches and R&D investment timelines.

This means Merck's pipeline must deliver not just clinical superiority, but also a demonstrable pharmacoeconomic advantage to secure favorable formulary placement. The bar for market access is higher than ever.

Merck & Co., Inc. (MRK) - PESTLE Analysis: Social factors

Rapid aging population increasing demand for oncology and chronic disease treatments

The demographic shift toward an older global population is a massive tailwind for Merck & Co., Inc., particularly for its oncology and chronic disease portfolio. You're looking at a structural change, not a cyclical one. The population aged 65 and older is projected to grow by almost 3% annually through 2030, and by 2030, about 1 in 6 people globally will be aged 60 or over. That means a higher prevalence of age-related conditions like cancer and cardiovascular issues.

In the U.S. alone, about 93% of adults aged 65 and older had at least one chronic condition in 2023, with nearly 79% living with multiple chronic conditions. This translates directly into sustained demand for drugs like Keytruda, Merck & Co., Inc.'s flagship oncology product. Keytruda sales in the first quarter of 2025 were already strong at $7.2 billion, growing 6% year-over-year, and then hit $8.0 billion in the second quarter, a 9% growth. The global chronic disease treatment market size itself grew to $9.74 billion in 2025, underscoring the immediate opportunity.

Here's the quick math on the opportunity:

• The aging cohort is the primary consumer of complex, high-margin treatments.
• Chronic disease treatment market growth is at a 16.34% CAGR from 2025 to 2034.
• Merck & Co., Inc. is investing over $70 billion in domestic R&D and manufacturing starting in 2025 to capture this growth.

Growing public demand for vaccine accessibility and affordability worldwide

Public health is increasingly focused on prevention, driving a strong market for vaccines, especially for adults. Adult immunization now accounts for the majority of vaccine sales worldwide, representing over 75% of the global vaccine market in 2024, and that share is increasing in 2025. This is a huge shift from a purely pediatric focus.

The global vaccines market is projected to grow from $78.9 billion in 2025 to $145.8 billion by 2034, a compound annual growth rate (CAGR) of 7.1%. Merck & Co., Inc. is a major player, but the social demand for affordability and access is a real pressure point, particularly in emerging markets. For example, sales of Merck & Co., Inc.'s major vaccine, Gardasil/Gardasil 9, were $1.1 billion in the second quarter of 2025, but that was a steep 55% decline, partially due to factors like reduced sales in China. This volatility shows that government procurement and public policy on pricing are critical risks.

The company is responding by bringing new products to market, like the FDA approval of ENFLONSIA for the prevention of Respiratory Syncytial Virus (RSV) in infants, which directly addresses a high-profile public health need in 2025.

Increased focus on health equity and diverse clinical trial participation

The social expectation and regulatory pressure to ensure health equity are now non-negotiable for big pharma. Regulators, including the FDA, have established requirements for diverse representation in clinical trials, pushing companies to implement formal Diversity Plans.

Merck & Co., Inc. has a dedicated 'Diversity, Equity & Inclusion (DE&I) in Clinical Trials' approach, which was rolled out in 2022. The goal is to ensure the trial population reflects the population that will actually use the medicine. By 2022, approximately 50% of Merck & Co., Inc.'s clinical trial patients were from diverse backgrounds, both in the U.S. and globally. What this estimate hides is the ongoing difficulty in sustaining this representation, especially for historically underrepresented groups like Black and Hispanic people who have been systematically under-represented in past studies.

The company has a cumulative goal to enable 'more people' to access innovative medicines and vaccines in markets as of 2025, compared to a 2020 baseline, which is a clear response to this social factor. Honestly, this is about building trust and ensuring efficacy across all populations. It's defintely the right move.

Lifestyle changes influencing the prevalence of metabolic diseases

The global rise in non-communicable diseases (NCDs) driven by urbanization, sedentary lifestyles, and poor diet creates a huge market, but also a social burden. This factor is a double-edged sword: massive opportunity, but also intense scrutiny on drug pricing and public health responsibility.

The statistics for metabolic diseases in the U.S. are alarming as of 2025:

Merck & Co., Inc. is actively targeting this space, which is smart. They announced a license agreement for an investigational oral lipoprotein(a) inhibitor targeting cardiovascular disease in 2025 and are developing Enlicitide Decanoate for hyperlipidemia (high cholesterol). The chronic disease treatment market's expected CAGR of 16.34% from 2025 to 2034 shows this is where the money is going, so their pipeline is well-aligned.

Merck & Co., Inc. (MRK) - PESTLE Analysis: Technological factors

Significant investment in mRNA technology for non-infectious disease applications

Merck & Co., Inc. is making substantial technological bets on next-generation nucleic acid platforms, which is critical for future growth beyond traditional small molecules and biologics. This is more than just vaccines; it's about using the body's own machinery to create therapeutic proteins. The core investment is a potential $3.5 billion collaboration with Orna Therapeutics, focused on circular RNA (oRNA), a technology that could offer advantages over linear messenger RNA (mRNA) in stability and protein production.

While the most prominent mRNA program is the personalized cancer vaccine, intismeran autogene (V940/mRNA-4157), with Moderna, Merck is also strategically positioned to capitalize on its partner's broader pipeline. Moderna's pipeline, which uses the same underlying technology, includes candidates for non-infectious diseases like cardiovascular disease and rare genetic disorders such as Propionic Acidemia and Methylmalonic Acidemia. This R&D diversification is how you hedge against the inevitable patent cliffs.

Use of Artificial Intelligence (AI) to accelerate drug discovery and clinical trial design

The company is aggressively integrating Artificial Intelligence (AI) and machine learning to streamline the notoriously slow drug development process. Honestly, this is one of the most immediate, high-impact technological changes in the industry right now. Merck is using an internal generative-AI-powered platform that directly impacts regulatory timelines.

For example, the platform has reduced the time needed to create a fully human-reviewed first draft of a Clinical Study Report (CSR)-a critical regulatory document-from an average of 180 hours to 80 hours. Plus, the AI has increased the quality of these drafts by reducing the number of errors by 50%. This isn't just a cost saver; it accelerates the entire pipeline, getting new treatments to market faster.

Expansion of the blockbuster Keytruda (pembrolizumab) into new indications

Keytruda remains the technological anchor, and its continued expansion into new indications is a massive driver of revenue. For the first nine months of 2025, Keytruda sales reached $23.3 billion, with full-year sales projected to hit $32.2 billion. The strategy is to move the drug into earlier lines of treatment and combination therapies, expanding the eligible patient population.

In 2025 alone, the FDA approved Keytruda for new indications, including:

• FDA approval in November 2025 for use with Padcev (enfortumab vedotin-ejfv) as a perioperative treatment for cisplatin-ineligible muscle-invasive bladder cancer.
• FDA approval in June 2025 for resectable locally advanced head and neck squamous cell carcinoma.
• Positive Phase III data in August 2025 for muscle-invasive bladder cancer.

This continuous expansion, now spanning over 30 indications, is a testament to the underlying technological versatility of PD-1 inhibition.

Need to defend against biosimilar development through formulation innovation

The biggest near-term technological risk is the impending patent expiration for Keytruda's intravenous (IV) formulation around 2028. To mitigate the projected 30-60% erosion of sales by biosimilars, Merck has executed a classic technological defense strategy: formulation innovation.

The company secured a critical win with the subcutaneous (SC) formulation, Keytruda QLEX (pembrolizumab and berahyaluronidase alfa-pmph), which received FDA approval in September 2025 across all solid tumor indications. This new formulation is a game-changer for patient convenience. The SC injection can be administered in as little as one minute, drastically faster than the approximately 30 minutes required for the IV infusion. Analysts are projecting a 30-40% conversion rate of patients to the SC version within two years of launch. Furthermore, Merck has built a substantial patent thicket around the drug, with nearly 300 patent applications filed and over 100 granted patents to delay generic competition.

Merck & Co., Inc. (MRK) - PESTLE Analysis: Legal factors

Impending patent expiration risks for key revenue drivers like Keytruda

The single largest legal risk for Merck & Co., Inc. is the impending loss of exclusivity (LOE) for its flagship oncology drug, Keytruda (pembrolizumab). This isn't just a business problem; it's a legal one, as the expiration of core patents opens the door to biosimilar competition and a sharp revenue decline. Keytruda generated an estimated $29.5 billion in sales in 2024, accounting for over 40% of Merck's total revenue. The primary U.S. patent is expected to expire at the end of 2028, with European exclusivity lasting until 2031.

To be fair, Merck is fighting this patent cliff with a legal and regulatory strategy called 'lifecycle management.' This involves developing a new subcutaneous (SC) formulation of Keytruda, which is a key move to differentiate the product from intravenous biosimilars. Regulatory submissions for this SC version are expected in 2025, but this strategy is already mired in litigation. For instance, in April 2025, Halozyme Therapeutics Inc. filed an intellectual property (IP) lawsuit against Merck, alleging infringement over the technology used in the new, easier-to-use SC version. This is a defintely a high-stakes legal battle.

Here's the quick math on the patent cliff risk for key products:

Increasing regulatory burden from the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA)

The regulatory environment is getting more complex and costly, particularly in the U.S. The most significant near-term financial threat is the Inflation Reduction Act (IRA), which introduces government price-setting for certain high-cost Medicare drugs. Merck was one of the first drugmakers to sue the U.S. government over the IRA, claiming constitutional violations.

The impact is already being felt on older, high-selling drugs:

• The IRA is set to impose a 79% Medicare price cut on Merck's diabetes drug Januvia starting in 2026.
• Price negotiations for Janumet and Janumet XR are starting in 2025, with negotiated prices taking effect in 2027.
• Keytruda is expected to be selected for the IRA government price-setting process in 2026, with negotiated prices taking effect in January 2028, compounding the impact of the patent expiration.

Also, a growing patchwork of state-level regulations adds administrative burden. For example, in 2025, Merck, along with other pharma companies, voiced opposition to new state laws, like Minnesota's, that regulate the use of PFAS (Per- and polyfluoroalkyl substances) in manufacturing and packaging, arguing the varying state requirements are inconsistent with federal law and create unworkable deadlines. You have to manage a federal agency and fifty state legislatures; it's a lot.

Ongoing litigation related to product liability and intellectual property infringement

Merck faces a constant stream of litigation that ties up resources and poses financial risk, not just from future patent cliffs but from past products and IP disputes. On the IP front, Merck has been aggressive in defending its crown jewel, successfully convincing the Patent Trial and Appeal Board (PTAB) in November 2025 to invalidate the last of nine patents owned by Johns Hopkins University that were at issue in a Keytruda-related lawsuit.

However, product liability cases continue to be a drain. As of December 31, 2024, the company was a defendant in two major categories of product liability lawsuits in the U.S.:

• Gardasil: Approximately 225 cases were pending in federal or state court, alleging various personal injuries following vaccination with Gardasil or Gardasil 9.
• Asbestos-contaminated talc: Approximately 415 cases were pending in various state courts, alleging plaintiffs developed mesothelioma due to exposure.

While Merck's legal team believes the likelihood of a material loss from these product liability cases is remote, the sheer volume of cases represents a significant operational cost in legal defense and potential settlement provisions. You can't ignore hundreds of active lawsuits.

Data privacy regulations (e.g., GDPR) governing patient data handling

As a global pharmaceutical company, Merck handles vast amounts of sensitive patient data, making it highly susceptible to evolving data privacy laws. Merck Group's global data privacy principles are explicitly based on the European General Data Protection Regulation (GDPR), which applies to all its businesses worldwide.

The financial and legal risk here is substantial, as GDPR penalties can reach up to €20 million or 4% of a company's global annual turnover, whichever is higher. In 2025, compliance is getting tougher due to the emergence of:

• GDPR 3.0: Stricter consent rules and extended liability, making cloud providers jointly liable for customer data breaches.
• US State Laws: A growing patchwork of stringent US state laws, requiring regional compliance teams.
• EU Data Act (EDA): The EDA, which came into force in September 2025, changes how companies must handle data from connected products, requiring operational and contractual changes.

Merck must continually invest in its global data privacy framework to ensure the secure and compliant processing of clinical trial data, patient information, and marketing data, especially as the regulatory landscape for health data and artificial intelligence (AI) governance continues to tighten globally.

Merck & Co., Inc. (MRK) - PESTLE Analysis: Environmental factors

Pressure from investors and public on achieving net-zero carbon emissions targets

You're seeing intense pressure from institutional investors and the public for pharmaceutical companies to commit to and, more importantly, execute on net-zero targets. Merck & Co., Inc. is responding with a clear, Science Based Targets initiative (SBTi)-aligned roadmap, but the real work-and risk-lies in Scope 3 emissions (the value chain).

The company has committed to achieving net-zero greenhouse gas (GHG) emissions across its global operations (Scopes 1, 2, and 3) by 2045. That's the long-term goal. For the near-term, the focus is on a major shift in energy sourcing and operational efficiency, and the 2025 target is critical. They are aiming to source 100% of their purchased electricity from renewable sources by the end of 2025. This is a huge undertaking, but it's defintely the right move to de-risk future carbon taxes and energy price volatility.

Here's the quick math on the mid-term targets, using a 2019 baseline:

• Reduce Scope 1 & 2 (direct operations) GHG emissions by $\geq$46% by 2030.
• Reduce Scope 3 (value chain) GHG emissions by $\geq$30% by 2030.

Stricter waste disposal regulations for pharmaceutical manufacturing by-products

The regulatory environment for pharmaceutical waste, especially for active pharmaceutical ingredients (APIs) and manufacturing by-products, is only getting tighter globally. Merck & Co., Inc. has been proactive here, which is a significant operational advantage. The company's 2025 goals are actually being exceeded ahead of schedule, which is a good sign of operational discipline.

Their key strategy is waste diversion, which means keeping waste out of landfills and incinerators without energy recovery. The original 2025 goal was to send $\leq$20% of global operational waste to these disposal methods. The latest data shows they are already performing better than this target.

The table below shows the waste diversion progress, which is a clear opportunity for Merck & Co., Inc. to market its environmental stewardship to B2B partners and regulators:

Integration of environmental, social, and governance (ESG) metrics into executive compensation

Linking executive pay to environmental, social, and governance (ESG) performance is no longer a fringe idea; it's a standard for S&P 500 companies, and Merck & Co., Inc. is fully on board. The Compensation and Management Development (C&MD) Committee for the Board reviews and approves corporate goals, including Sustainability Metrics, for executive officer compensation.

While the specific weighting for environmental metrics in the 2025 Named Executive Officer (NEO) Annual Incentive Plan (AIP) Scorecard often focuses on broader 'Sustainability' goals like Access to Health and employee engagement, the strategic integration is clear. The company also integrates climate targets into its Capital Expenditure (CapEx) process, for example, by using an internal $\text{CO}_2$ price. This means that every major investment decision is now filtered through an environmental cost lens, which is a powerful, non-financial driver of change. You can't separate the environmental risk from the financial one anymore.

Scrutiny over water usage in manufacturing processes, especially in water-stressed regions

Water is a critical input in pharmaceutical manufacturing, and the industry is under increasing scrutiny for its withdrawal, especially in regions facing drought or water stress. Merck & Co., Inc.'s strategy is to manage its total water footprint against a fixed historical baseline, regardless of production growth.

The company's 2025 goal is to maintain global water use at or below 2015 levels. The 2015 baseline for total water use was 23 million $\text{m}^3$. The most recent full-year data shows they are well on track, which mitigates a major operational risk.

Here's the breakdown:

• 2015 Baseline Water Use: 23 million $\text{m}^3$
• 2024 Total Water Use: 19.3 million $\text{m}^3$
• Status: Water use in 2024 was 3.7 million $\text{m}^3$ (or 16%) below the 2015 baseline.

What this estimate hides is the local risk. Even with a lower total, a concentration of water usage in an 'extremely high or high stress' region, as defined by the WRI Aqueduct Water Risk Atlas, could still lead to local operational shutdowns or public backlash. Merck & Co., Inc. reported that only 0.1 million $\text{m}^3$ of its 2024 groundwater use came from these high-stress areas, which shows a focused effort to manage that local exposure.