Advertisement
UK markets open in 5 hours 21 minutes
  • NIKKEI 225

    39,554.16
    -186.28 (-0.47%)
     
  • HANG SENG

    16,649.36
    -87.76 (-0.52%)
     
  • CRUDE OIL

    82.69
    -0.03 (-0.04%)
     
  • GOLD FUTURES

    2,165.30
    +1.00 (+0.05%)
     
  • DOW

    38,790.43
    +75.66 (+0.20%)
     
  • Bitcoin GBP

    52,174.75
    -802.75 (-1.52%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,103.45
    +130.27 (+0.82%)
     
  • UK FTSE All Share

    4,218.89
    -3.20 (-0.08%)
     

Merck & Co posts first-quarter sales beat, raises guidance

Investing.com -- Shares in Merck&Company Inc (NYSE:MRK) fell in early U.S. trading on Thursday, reversing premarket gains, as investors eyed first-quarter sales that beat analysts' estimates despite slipping by just under a tenth.

Sales at the drugmaker dropped by 8.9% year-on-year to $14.49 billion in the opening three months of its current fiscal period. Bloomberg consensus estimates had seen the figure at $13.76B.

On an adjusted basis, earnings per share moved down to $1.40 from $2.14 in the corresponding timeframe last year, but topped projections of $1.33.

The top-line slump stemmed from flagging post-pandemic demand for Merck's COVID pill molnupiravir, although this fall was largely anticipated. When removing molnupiravir, which is commonly sold under the name Lagevrio, sales grew by more than 10%.

ADVERTISEMENT

Merck's popular cancer immunotherapy Keytruda and human papillomavirus vaccine Gardasil helped offset this decrease as well. Sales of Keytruda jumped by a fifth to $5.8B, while revenue generated by Gardasil surged by 35% to $2.0B.

With the returns in mind, Merck raised its full-year financial guidance. Adjusted earnings per share is now expected to come at $6.88 to $7.00 in 2023, up from the prior range of $6.80 to $6.95. Sales are also projected at between $57.5B to $58.9B, an improvement from the previous band of $57.2B to $58.7B.

The figures come after Merck announced earlier this month that it had agreed to acquire California-based biotechnology firm Prometheus Biosciences in a deal valued at approximately $10.8B. Merck said the move will add "diversity" to its overall portfolio of treatments.

Adding to its drug pipeline has become a major strategic objective for Merck as it looks to soften the blow from the eventual expiration of its exclusive patent for Keytruda later this decade.

Related Articles

Lyft to lay off more than 1,000 employees in cost-cut push

Wall St rallies as Meta earnings offset economy worries