Merck's Keytruda Drives Record Profits Amid Revised Sales Projections

Merck & Co reported strong second-quarter results largely driven by the success of its cancer immunotherapy drug, Keytruda. Despite adjusting its 2024 earnings forecast from acquisition-related charges, the company's profits and sales projections have exceeded analysts' expectations. Keytruda's sales reached $7.3 billion, significantly boosting Merck's overall performance.

Merck & Co posted higher-than-expected second-quarter results on Tuesday, buoyed by robust growth of its blockbuster cancer immunotherapy Keytruda, which is the world's best-selling prescription medicine.

Following the trend set by other major pharmaceutical companies, New Jersey-based Merck has modestly increased its full-year sales projections. The company reported a profit of $5.5 billion, or $2.14 per share, up from a loss of $6 billion, or $2.35 per share, in the same quarter the previous year when it faced a substantial acquisition-related charge.

Excluding one-time items, Merck's earnings stood at $2.28 per share, surpassing the $2.15 per share average expected by analysts, according to LSEG data. Quarterly sales climbed to $16.1 billion, marking a 7% increase from last year and beating analysts' forecasts of $15.8 billion. Keytruda, approved for multiple cancer treatments, saw sales jump 16% to $7.3 billion, exceeding predictions of $7.1 billion.

Merck now projects full-year sales between $63.4 billion and $64.4 billion, slightly up from its previous estimate of $63.1 billion to $64.3 billion. Despite the upward revision in sales, the company has reduced its full-year earnings forecast due to one-time charges from acquiring EyeBio, a drug developer focusing on eye treatments. Merck anticipates 2024 earnings to range from $7.94 to $8.04 per share, down from the previous forecast of $8.53 to $8.65. Analysts had projected 2024 earnings to be around $8.15 per share. Shares of the company, closing at $127.78 on Monday, have appreciated over 17% this year.

(With inputs from agencies.)