Merck exceeded expectations in sales and profit on Thursday, and then the American pharmaceutical company raised its yearly projections.
In the third quarter, Merck & Co. reported better-than-expected revenue and profit thanks to the success of its top-selling cancer immunotherapy medication Keytruda and human papillomavirus vaccine Gardasil.
In spite of challenges brought on by the weak euro and pound, shares increased 2.6% in premarket trade as the pharmaceutical company upgraded its annual projections for sales and earnings.
Furthermore, the sales of top-selling medication Keytruda increased by almost 20% to $5.4 billion, as it was predicted by analysts. Also, sales of Gardasil increased 15% to $2.3 billion, exceeding estimates by almost $200 million.
Without certain items, the corporation recorded a profit of $4.7 billion, or $1.85 per share. Comparatively, a year ago, there were $4.5 billion, or $1.78 per share. In fact, the average analyst estimate for earnings per share was $1.71.
Gardasil’s stronger-than-anticipated increase “has reflected growing overseas demand and maybe normalization from COVID trends in the U.S.,” according to Wells Fargo analyst Mohit Bansal.
Additionally, the business reported slightly higher-than-expected sales of the COVID-19 antiviral medication Lagevrio (molnupiravir). Together with partner Ridgeback Biotherapeutics, Merck developed the medicine and splits profits.
However, Merck’s animal health division underperformed which BMO Capital Markets analyst Evan Seigerman called “the single area of concern,” but said that it had already shown considerable growth before the epidemic.
From its previous range of $57.5 billion to $58.5 billion, Merck now anticipates full-year revenues between $58.5 billion and $59 billion. It anticipates a full-year profit between $7.32 and $7.37 per share.
Moreover, sales for the third quarter increased 14% to $15 billion, exceeding the $14.1 billion Refinitiv projection.
Merck said on Wednesday that Chief Executive Officer Rob Davis would succeed Ken Frazier as chairman effective on December 1.
