Merck Beats Q3 Estimates, But Lowers Annual Forecast As Gardasil Vaccine Hit By Low China Demand

On Thursday, Merck & Co Inc MRK reported third-quarter sales of $16.66 billion, up 4% year over year and beating the consensus estimate of $16.47 billion.

Excluding the impact of foreign exchange, sales increased 7%.

Merck reported adjusted EPS of $1.57, down from $2.13 a year ago, beating the consensus of $1.51.

The pharmaceutical unit booked $14.94 billion in revenue, up 5% year over year.

The increase was driven by growth in oncology and cardiovascular, partially offset by declines in diabetes, vaccines, and virology.

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Merck’s blockbuster cancer immunotherapy Keytruda generated $7.43 billion in revenue during the quarter, up 17% from the year-earlier period. 

Merck reported a decline of 11% in sales of Gardasil to $2.31 billion, a vaccine that prevents cancer from HPV, the most common sexually transmitted infection in the U.S., due to lower demand in China, partially offset by higher sales in the U.S., driven by public-sector buying patterns, higher pricing and demand, and higher demand in most international regions.

The newly approved Winrevair (sotatercept) for adults with pulmonary arterial hypertension generated sales of $149 million.

Guidance: Merck revised and narrowed its full-year 2024 forecasts. 

The company expects 2024 sales of $63.6 billion–$64.1 billion, compared to prior guidance of $63.4 billion–$64.4 billion and a consensus of $64.2 billion.

The U.S. pharma giant expects 2024 adjusted EPS of $7.72–$7.77, compared to prior guidance of $7.94 to $8.04 and consensus of $7.74.

Outlook reflects a net negative impact of $0.24/share related to business development transactions with Curon Biopharmaceutical and Daiichi Sankyo.

Price Action: MRK stock is down 3.3% at $101.47 at last check Thursday.

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Image courtesy of Merck.