Merck's Q2 Earnings: Revenue And EPS Beat Helped By Strong Keytruda Sales, But Acquisition Costs Bites Into Annual Profit Forecast

Merck’s Q2 Earnings: Revenue And EPS Beat Helped By Strong Keytruda Sales, But Acquisition Costs Bites Into Annual Profit Forecast

On Tuesday, Merck & Co Inc (NYSE:MRK) reported second-quarter sales of $16.1 billion, up 7% year-over-year, beating the consensus estimate of $15.84 billion. Excluding the impact of foreign exchange, sales increased 11%.

Merck reported adjusted EPS of $2.28, a shift from an EPS loss of $(2.06), beating the consensus of $2.15.

The pharmaceutical unit booked $14.41 billion in revenue, up 7% year over year. Growth in oncology, cardiovascular, and vaccines, partially offset by declines in diabetes and virology, drove the growth.

Also Read: Merck Gets Legal Victory As Appeals Court Dismisses Shingles Vaccine Some 1,200 Lawsuits.

Merck’s blockbuster cancer immunotherapy Keytruda generated $7.27 billion in revenue during the quarter, up 16% from the year-earlier period.

Merck also reported a marginal increase of 1% in sales of Gardasil to $2.48 billion, a vaccine that prevents cancer from HPV, the most common sexually transmitted infection in the U.S. Growth was largely offset by lower sales in China.

The newly approved Winrevair (sotatercept) for adults with pulmonary arterial hypertension generated sales of $70 million.

During the quarter, the FDA approved Merck’s Capvaxive (Pneumococcal 21-valent Conjugate Vaccine) to protect against 21 strains of bacteria to prevent a severe form of pneumococcal disease, as the first pneumococcal conjugate vaccine specifically designed to protect adults.

Also, the company, with its partner Daiichi Sankyo (OTC:DSKYF) (OTC:DSNKY) received an FDA Complete Response Letter (CRL) for the Biologics License Application (BLA) seeking accelerated approval of patritumab deruxtecan (HER3-DXd) for a certain type lung cancer.

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

The company expects 2024 sales of $63.4 billion—$64.4 billion, compared to previous guidance of $63.1 billion—$64.3 billion and the consensus of $64.34 billion.

The U.S. pharma giant expects 2024 adjusted EPS of $7.94 to $8.04, compared to prior guidance of $8.53-$8.65 and consensus of $8.16.

The outlook includes one-time charges of $0.77 per share For Harpoon and Eyebio acquisitions.

Price Action: MRK stock is down 3.19% at $123.70 during the premarket session at last check Tuesday.

Read Next:

Photo Courtesy of Merck

“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!

Get the latest stock analysis from Benzinga?

This article Merck’s Q2 Earnings: Revenue And EPS Beat Helped By Strong Keytruda Sales, But Acquisition Costs Bites Into Annual Profit Forecast originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source: finance.yahoo.com