Merck earnings better-than-expected on Keytruda, Gardasil strength

Prometheus Biosciences

27/04/2023 11:30

April 27 (Reuters) - Drugmaker Merck & Co on Thursday
posted better-than-expected first-quarter results on the
strength of its blockbuster cancer immunotherapy Keytruda and
human papillomavirus (HPV) vaccine Gardasil.
    The company's revenue fell year-over-year due to a sharp,
but expected, drop in sales from its COVID pill molnupiravir,
but excluding that drug they rose more than 10 percent. It
raised its full-year forecast for sales and earnings, citing
strong global demand for its drugs.
    Merck said its sales in the quarter were $14.5 billion, down
from $15.9 billion last year. Analysts, on average, had expected
sales of $13.8 billion, according to Refinitiv data.
    The company said it earned $1.40 a share in the quarter,
compared with $2.14 a share last year. Analysts, on average, had
expected $1.32 a share.
    Sales of Keytruda rose 20% to $5.8 billion in the quarter,
topping the average analyst forecast of $5.6 billion. Gardasil
sales rose 35% to $2 billion, beating analyst estimates of $1.7
billion.
    Sales for COVID treatment molnupiravir - sold under the
brand name Lagevrio - fell to $392 million from $3.2 billion
last year. The company has said it expects just $1 billion of
molnupiravir sales this year.
    It forecast 2023 sales of $57.7 billion to $58.9 billion, up
from its previous forecast of $57.2 billion to $58.7 billion. It
now expects to earn $6.88 to $7 a share.
    Analysts, on average, expect 2023 earnings of $6.91 a share
on sales of $58.3 billion.
    Earlier this month, Merck struck a deal to buy Prometheus
Biosciences Inc  RXDX.O  for about $10.8 billion, picking up a
promising experimental treatment for ulcerative colitis and
Crohn's disease and building up its presence in immunology.
    Merck has been looking for deals to protect itself from
eventual revenue loss as patents on Keytruda begin to expire
toward the end of the decade. The company reported nearly $21
billion in Keytruda sales last year.

 (Reporting by Michael Erman; editing by Diane Craft)
 ((michael.erman@thomsonreuters.com;))