Merck Clocks More Than 50% Drop In COVID-19 Treatment Sales, Revises Annual Guidance

Merck & Co Inc's MRK Q3 sales reached $14.96 billion, +14% Y/Y, beating the consensus of $14.07 billion. Excluding the foreign exchange impact and COVID-19 treatment sales, revenues were up 14%.
Pharmaceutical sales increased 13% to $13 billion. The sales increased 9%, excluding Lagevrio (molnupiravir) and forex impact, primarily driven by oncology, vaccines, and hospital acute care products.
COVID-19 treatment drug Lagevrio (molnupiravir) sales were $436 million, down from $1.2 billion in Q2 FY22 and $3.2 billion generated in Q1 FY22.
Growth in oncology was primarily driven by higher sales of Keytruda, which rose 20% to $5.4 billion.
Vaccine sales rebounded, and Gardasil/ Gardasil 9 sales were up 15% to $2.3 billion, primarily driven by strong global demand, particularly in China.
Adjusted EPS of $1.85 also surpassed the analysts' estimate of $1.75 and was up from $1.78 a year ago.
2022 Guidance: Merck has raised and narrowed its FY22 sales guidance to $58.5-$59.0 billion (vs. earlier range of $57.5-$58.5 billion), up 20%-21 % (or 12% excluding Lagevrio). Outlook includes a negative forex impact of approximately 4%.
The company narrowed Lagevrio sales guidance to $5.2-$5.4 billion from $5 billion - $5.5 billion.
It expects an adjusted EPS of $7.32-$7.37, compared to earlier guidance of $7.25 - $7.35.
Price Action: MRK shares are up 1.87% at $100.25 premarket on the last check Thursday.

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