Merck third-quarter earnings climb, lifts full-year outlook By Reuters

By Michael Erman

(Reuters) – Merck & Co on Thursday posted better-than-expected third-quarter sales and earnings on a strong performance by its blockbuster cancer immunotherapy drug Keytruda and human papillomavirus vaccine Gardasil.

The drugmaker also raised its full-year sales and earnings forecasts despite headwinds created by the weak euro and pound.

Third-quarter sales climbed 14% to $15.0 billion, ahead of a Refinitiv consensus estimate of $14.1 billion.

The company said profit in the quarter was $4.7 billion, or $1.85 a share, excluding certain items. That compares with $4.5 billion, or $1.78 per share, a year earlier. Analysts had been expecting earnings of around $1.71 per share.

Sales of Keytruda jumped around 20% to $5.4 billion, in line with analysts’ estimates. Gardasil sales rose 15% to $2.3 billion, topping expectations by more than $200 million.

The company also posted slightly better-than-expected sales of its COVID-19 antiviral drug Lagevrio (molnupiravir) in the quarter. It developed the drug and shares profits with partner Ridgeback Biotherapeutics.

Merck now expects full-year sales between $58.5 billion and $59 billion, up from its previous range of $57.5 billion to $58.5 billion. It exects full-year profit in the range of $7.32 to $7.37 per share.

Merck said on Wednesday Chief Executive Officer Rob Davis would take on the additional role of chairman as of Dec. 1, succeeding the company’s current chairman, Ken Frazier.