Merck Profit Boosted by Sales of Covid-19 Pill

(Bloomberg) -- Merck & Co. reported stronger-than-expected first-quarter profit and revenue and raised its full year outlook Thursday, buoyed by sales of its Covid-19 antiviral following the winter omicron wave. 

• Merck reported $3.2 billion in revenue from its Covid antiviral, known as Lagevrio or molnupiravir, compared with Wall Street expectations of $2.72 billion. The drug was cleared by regulators in late 2021 so the first quarter is its first full quarter of sales.
• The company now expects overall full-year sales of $56.9 billion to $58.1 billion, up from a prior forecast that topped out at $57.6 billion. Adjusted 2022 earnings will be $7.24 to $7.36 a share, Merck said, up from a range of $7.12 to $7.27.

Key Insights

• Merck reported first-quarter adjusted earnings of $2.14 per share, above analyst expectations of $1.83. Revenue was $15.9 billion, beating the Wall Street consensus.
• Cancer drug Keytruda had $4.8 billion in sales, versus analysts’ expectation of $4.55 billion. Merck HPV vaccine Gardasil had $1.46 billion in sales for the quarter, compared with the average estimate of $1.31 billion.
• The company lowered its full-year sales guidance for Lagevrio to $5 billion to $5.5 billion from a prior forecast that went as high as $6 billion. The antiviral has reached 500,000 patients around the world and Merck has shipped 6.4 million courses, Chief Financial Officer Caroline Litchfield said.

Market Reaction

• The stock rose as much as 4.2% at the open in New York, the most intraday in two months. It had gained 10% this year through Wednesday’s close.

Get More

• See more financial details here.
• Read the company’s news release here.

©2022 Bloomberg L.P.