Biotech
Thursday, April 25th, 2024 3:45 pm EDT
Key Points
- Strong Financial Performance: Merck reported first-quarter revenue and adjusted earnings that exceeded expectations, driven by robust sales of its blockbuster cancer drug Keytruda and vaccine products. The company raised its full-year revenue and adjusted earnings forecasts, expecting sales between $63.1 billion and $64.3 billion and adjusted earnings of $8.53 to $8.65 per share.
- Keytruda’s Growth and Future Outlook: Merck’s pharmaceutical unit witnessed a significant jump in revenue, with Keytruda generating $6.95 billion in revenue during the quarter, up 20% from the year-earlier period. The company is preparing for Keytruda’s patent expiration in 2028 by focusing on new deals and drug launches, such as Winrevair, a medication approved to treat lung conditions. Merck expects a successful launch of Winrevair, anticipating significant worldwide sales potential.
- Diverse Product Portfolio and Market Strategies: Despite challenges like declining sales of Januvia and Lagevrio due to factors like lower prices and reduced Covid-related demand, Merck’s vaccine sales, including Gardasil and Vaxneuvance, posted strong growth. The company is also cutting costs through a restructuring program while expanding its portfolio, as seen in the recent acquisition of Elanco Animal Health’s aquatic business for $1.3 billion in cash, aiming to bolster its presence in the animal health sector.
Merck reported strong first-quarter revenue and adjusted earnings, driven by robust sales of Keytruda, its blockbuster cancer drug, and vaccine products. The company raised its full-year revenue and adjusted earnings forecasts, expecting sales between $63.1 billion and $64.3 billion and adjusted earnings of $8.53 to $8.65 per share. Despite a one-time charge related to the acquisition of Harpoon Therapeutics, Merck’s earnings per share exceeded expectations at $2.07 adjusted, compared to the expected $1.88, while revenue stood at $15.78 billion, surpassing the estimated $15.20 billion. The company is preparing for Keytruda’s patent expiration in 2028, aiming to mitigate revenue loss through new deals and drug launches, such as Winrevair, approved to treat lung conditions. Merck also initiated a restructuring program to improve its manufacturing network and reduce costs. Keytruda drove a 20% increase in pharmaceutical division sales, reaching $6.95 billion, while vaccine sales, including Gardasil and Vaxneuvance, also surged. However, sales of Januvia and Lagevrio declined due to factors like generic competition and reduced Covid-related demand. Merck’s animal health division reported modest growth, and the company recently announced the acquisition of Elanco Animal Health’s aquatic business for $1.3 billion, expanding its portfolio in the animal health sector.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/25/merck-mrk-earnings-q1-2024.html
