Merck & Co. lifts full-year sales forecast as Keytruda, Gardasil surge

01 Aug 2023
firstwordpharma.com
AcquisitionVaccineFinancial Statement
Headline results for the second quarter:
Pharmaceutical product sales: $13.5 billion, up 6%
Overall revenue: $15 billion (forecasts of $14.4 billion), up 3%
Loss: $6 billion, versus profit of $3.9 billion
Note: All changes are versus the prior-year period unless otherwise stated
What the company said:
CEO Rob Davis commented "we delivered robust underlying growth during the second quarter," led by Keytruda and Gardasil, adding that Merck & Co. is  "well positioned to achieve strong full-year results."
According to Davis, the performance of Keytruda is "really driven by very strong uptake as we're continuing to move into earlier lines of cancer," with use in triple-negative breast cancer also contributing to the product's growth. Meanwhile, the use of Gardasil in China was the biggest driver of growth for the HPV vaccine, which could see increased sales as it is utilised in males.
Other results:
Keytruda: $6.3 billion, up 19%, topping forecasts of $5.9 billion
Vaccines: $3.6 billion, up from $2.7 billion in the prior year
Gardasil/Gardasil 9: $2.5 billion, up 47%, besting estimates of $2.1 billion
Proquad/M-M-R II/Varivax: $582 million, up 1%
RotaTeq: $131 million, down 25%
Pneumovax 23: $92 million, down 40%
Januvia/Janumet: $864 million, down 30%
Lagevrio: $203 million, down 83%
Bridion: $502 million, up 18%
Simponi: $180 million, down 1%
Isentress/Isentress HD: $136 million, down 7%
Lynparza (alliance revenue): $310 million, up 13%
Lenvima (alliance revenue): $242 million, up 5%
Looking ahead:
Merck & Co. now expects to generate sales this year of between $58.6 billion and $59.6 billion, boosted from an earlier estimated range of $57.7 billion to $58.9 million. The company noted that the forecast continues to include approximately $1 billion in revenue from Lagevrio.
Meanwhile, earnings per share are anticipated to be between $2.95 and $3.05, slashed from a prior range of $6.88 to $7.00. Merck explained that the revised guidance reflects one-time charges of $4.53 per share, which include $10.2 billion or $4.02 per share related to the acquisition of Prometheus Biosciences.
Davis noted that the Prometheus purchase will not constrain the company's ability to do more deals, and it continues to "look for science-driven, science-led opportunities." The executive remarked "while I feel pretty good about what we have in the internal pipeline and the progress we're making, we know there's more to do."
What analysts said:
Cantor Fitzgerald analyst Louise Chen noted that the strength of Merck's underlying business, as well as multiple potential drugs in its pipeline, should support strong earnings beyond the end of the decade, when Keytruda is seen losing exclusivity.
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