Merck Quarterly Profit Exceeds Expectations Due to Strong Demand for Keytruda, Gardasil, and Surprise Surge in COVID-19 Pill Sales

Pharmaceutical giant raises yearly revenue forecast while decreasing earnings per share (EPS) outlook due to a $5.5 billion upfront charge associated with recent partnership with Daiichi Sankyo, as Gardasil sales grow in China and the US and COVID-19 pill, Lagevrio, experiences unexpected demand surge in Japan.

• Merck's Q3 2023 profits surpassed estimates due to robust demand for its Keytruda cancer drug, Gardasil HPV vaccine, and Lagevrio COVID-19 treatment.
• Keytruda sales increased by 17% to $6.34 billion, driven by its use in early-stage cancer and metastatic indications, while Gardasil sales rose by 13% to $2.59 billion due to increased demand in China and higher prices in the U.S.
• Lagevrio sales experienced an unexpected surge, increasing by 47% to $640 million, primarily driven by high demand in Japan.
• The company adjusted its full-year revenue forecast to range between $59.7 billion and $60.2 billion, signifying an increase from the previous projection of $58.6 billion to $59.6 billion.
• However, Merck decreased its EPS outlook from $2.95-$3.05 to $1.33-$1.38 due to a $5.5 billion upfront charge associated with a recent partnership with Japanese pharmaceutical company Daiichi Sankyo.

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