Merck & Co Boosts Sales Forecast on Robust Keytruda Performance

Merck & Co surpassed second-quarter expectations driven by strong sales of its cancer drug Keytruda. The company posted a profit of $5.5 billion and increased its full-year sales projections. Despite the positive results, Merck lowered its earnings forecast for 2024 due to acquisition-related charges.

Merck & Co has exceeded second-quarter projections, largely credited to the remarkable performance of Keytruda, its leading cancer immunotherapy drug. The pharmaceutical giant, based in New Jersey, also upped its full-year sales outlook, joining the ranks of Roche, Johnson & Johnson, and Bristol Myers Squibb, which have also raised their forecasts this month.

Merck reported a quarterly profit of $5.5 billion, or $2.14 per share, in stark contrast to a loss of $6 billion, or $2.35 per share, attributed to a major acquisition-related charge, from the previous year. Excluding one-time items, the company earned $2.28 per share, surpassing analysts' expectations of $2.15 according to LSEG data.

The quarter saw a 7% rise in sales to $16.1 billion, exceeding analysts' projections of $15.8 billion. Sales of Keytruda, which treats various types of cancer, reached $7.3 billion, a 16% increase from the previous year, outstripping the anticipated $7.1 billion. Meanwhile, the newly launched drug Winrevair for pulmonary arterial hypertension recorded $70 million in sales, surpassing even the most optimistic forecasts.

However, Merck adjusted its full-year earnings forecast to $7.94-$8.04 per share, down from the previous $8.53-$8.65, primarily due to charges from the acquisition of EyeBio. The company's shares fell by 2% in premarket trading.