Merck beats expectations in Q3 with strong Keytruda sales, but shares drop over narrowed forecast
From CNBC: 2024-10-31 11:17:52
Merck reported third-quarter revenue and earnings that surpassed expectations due to strong sales from Keytruda, new treatments, and its animal health business. However, sales of Gardasil, a vaccine for HPV, fell 11% due to lower demand in China. Merck narrowed its full-year sales and profit forecast, leading to a more than 3% drop in shares.
In the third quarter, Merck’s earnings per share were $1.57 adjusted, higher than the expected $1.50, with revenue at $16.66 billion compared to $16.46 billion expected. Net income was $3.16 billion, reflecting a decrease from the year-earlier period. Merck is preparing for the patent expiration of Keytruda in 2028 and is working on new drug launches to offset potential revenue losses.
Merck’s pharmaceutical unit exceeded expectations with $14.94 billion in revenue, driven by Keytruda sales reaching $7.43 billion, up 17% from the previous year. Gardasil sales declined 11% to $2.31 billion, mainly due to lower demand in China. Winrevair, a new medication, posted $149 million in revenue, surpassing analyst estimates.
Despite challenges in Januvia sales due to lower prices and generic competition, Merck remains optimistic about the long-term opportunity for Gardasil, aiming for $11 billion in global sales by 2030. The company is focused on increasing patient activation and demand for Gardasil in China. Sales of Lagevrio, Merck’s Covid antiviral pill, fell 40% to $383 million in the third quarter but exceeded analyst expectations.
Read more at CNBC:: Merck (MRK) earnings Q3 2024