** Shares of drugmaker Merck MRK.N fall 2.7% to $81.83 premarket

** Co reports Q2 adj EPS of $2.13, down 7% from a year earlier

** MRK posts Q2 revenue of $15.81 bln, down 2% year-over-year, hurt by weak demand for its human papillomavirus vaccine Gardasil in China

** MRK reports Gardasil sales of $1.1 billion in the quarter, below analysts' expectations of $1.3 billion, according to data compiled by LSEG

** Co also announced layoffs and cost cuts, which are expected to achieve $3 billion in annual savings by the end of 2027

** Co narrows full-year revenue forecast to a range of $64.3 bln to $65.3 bln vs previous range of $64.1 bln to $65.6 bln

(Reporting by Mariam Sunny in Bengaluru)

((Mariam.ESunny@thomsonreuters.com;))