World Stock Watch

Merck’s Q3 Earnings: A Mixed Bag

Strong Sales of Cancer Drug Keytruda Offset by Disappointing Vaccine Performance

Pharmaceutical giant Merck reported its third-quarter earnings, revealing a mixed bag of results. While the company’s top-selling cancer drug Keytruda saw strong sales, its vaccine Gardasil, which prevents cancer from HPV, posted disappointing numbers.

Keytruda Shines

Keytruda, an immunotherapy drug, recorded $7.43 billion in revenue during the quarter, up 17% from the year-earlier period. This increase was driven by higher uptake of Keytruda for earlier-stage cancers and strong demand for the drug for metastatic cancers.

Gardasil Falls Short

Gardasil, on the other hand, brought in $2.31 billion in sales, down 11% from the third quarter of 2023. The decline was primarily due to lower demand in China compared with the year-earlier period, partially offset by higher sales in the U.S.

Other Notable Performances

Merck’s animal health division, which develops vaccines and medicines for dogs, cats, and cattle, posted $1.49 billion in sales for the third quarter, up 6% from the year-earlier period. The company’s Type 2 diabetes treatment, Januvia, saw $482 million in sales, down 42% from the same period a year ago. Winrevair, a medication approved in the U.S. in March to treat a progressive and life-threatening lung condition, posted $149 million in revenue for the third quarter.

Guidance Revised

Merck narrowed its full-year sales forecast to a range of $63.6 billion to $64.1 billion, from a previous guidance of $63.4 billion to $64.4 billion. The company also lowered its adjusted profit guidance from a range of $7.94 to $8.04 per share, from a previous forecast of $7.72 to $7.77 per share.

Preparing for the Future

As Merck prepares for the patent expiration of Keytruda in 2028, the company is focusing on new deals and key drug launches to offset potential losses. With a handful of new treatments in the pipeline, including Capvaxive, a vaccine designed to protect adults from pneumococcus, Merck is poised to continue its growth trajectory.