Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Merck raises annual profit outlook as Keytruda drives profit beat

Published 10/27/2020, 06:59 AM
Updated 10/27/2020, 09:00 AM
© Reuters. FILE PHOTO: The Merck logo is seen on a sign at the Merck & Co campus in Linden, New Jersey
MRK
-

(Reuters) - Merck & Co Inc (N:MRK) posted a quarterly profit that beat estimates on Tuesday and raised its adjusted earnings forecast for the full year, as it expects a majority of the blow from the ongoing COVID-19 pandemic to now be behind it.

The upbeat results showed Merck was on a recovery path after its revenue took a hit at the height of the pandemic, nudging the company's shares about 2% higher in premarket trading.

Sales of the drugs increased by 2% to $11.3 billion during the third-quarter, driven primarily by growth in its cancer drugs like blockbuster immunotherapy Keytruda and certain hospital acute care products.

The company also benefited from increased demand for its bacterial pneumonia vaccine, Pneumovax 23, in the United States, Japan, and Europe as people seek to avoid one lung disease compounding another during the pandemic.

Sales of Keytruda, which is an approved treatment for cancers including non-small-cell lung cancer, rose 21% to $3.7 billion, above analysts estimates of $3.66 billion, according to six analysts polled by Refinitiv.

Merck said it now expects full-year adjusted profit of between $5.91 and $6.01 per share, compared with its prior forecast of between $5.63 to $5.78 per share.

For 2020, Merck now expects an unfavorable impact to revenue of about $2.35 billion due to the pandemic, up from $1.95 billion it had initially estimated.

© Reuters. The Merck logo is seen at a gate to the Merck & Co campus in Linden, New Jersey

Excluding items, Merck earned $1.74 per share, beating analysts' average estimates of $1.44 per share, according to IBES data from Refinitiv.

(Reporting Manojna Maddipatla in Bengaluru; Editing by Shailesh Kuber)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.