Merck & Co. (MRK) posted better-than-expected third quarter earnings Thursday, while lifting its full-year profit guidance for a second time, thanks in part to impressive sales of its blockbuster cancer treatment Keytruda.
Merck said adjusted earnings for the three months ending in September came in at $1.85 per share, up 5.7% from the same period last year and firmly ahead of the Street consensus forecast of $1.71 per share. Group revenues, Merck said, rose 13.8% to $14.96 billion, against the $14.1 billion tally forecast by analysts that cover the pharma giant.
Keytruda sales surged 20% from last year to $5.43 billion, Merck said. Sales of its Covid antiviral pill Lagevrio, which it developed with Ridgeback Theraputics, saw sales of $436 million.
Looking into 2022, Merck said it sees full-year non-GAAP earnings in the range of $7.32 to $7.37 per share, compared to its prior forecast of $7.25 to $7.35 per share, with worldwide sales pegged between $58.8 billion and $59 billion.
"We continue to execute on our strategy, invest in leading-edge science and drive innovation as our colleagues deliver meaningful value for patients – which in turn provides value for our shareholders,” said CEO Robert Davis.
“Our third quarter results demonstrate exceptional revenue and underlying earnings growth and sustained performance across our key growth drivers," he added. "Inspired by our purpose of saving and improving lives around the world, I am confident we are well-positioned to continue to deliver strong operational performance.”
Dow component Merck shares were marked 2.6% higher in early Thursday trading following the earnings release to change hands at $100.95 each.
Earlier this month, Merck and Moderna (MRNA) agreed to develop a specifically structed cancer vaccine, known as mRNA-4157, to be developed alongside Merck's blockbuster Keytruda treatment.
Merck will pay Moderna $250 million as part of the option agreement, which will be based on that drugmaker's messenger RNA-based technology.
Personalized cancer vaccines, the companies said, are designed to prime the immune system so that a patient can generate a tailored antitumor response to their tumor mutation signature to treat their cancer. The new vaccine, Moderna said, is undergoing mid-stage trials with data expected before the end of the year.
