Merck 1Q Sales Rise on Continued Keytruda Growth

By Nicholas G. Miller

Merck reported higher first-quarter sales and raised its full-year earnings guidance as demand for its flagship Keytruda cancer drug continues to grow.

Sales rose 5% to $16.29 billion, boosted by 12% growth for Keytruda. Wall Street had expected $15.85 billion, according to FactSet.

The company guided for full-year sales of $65.8 billion to $67 billion and adjusted earnings of $5.04 to $5.16 a share. That compares with its previous forecast of $65.5 billion to $67 billion in revenue and adjusted earnings of $5 to $5.15 a share.

For the first quarter, the company reported a loss of $4.24 billion, or $1.72 a share, compared with a profit of $5.08 billion, or $2.01 a share, the year prior.

On an adjusted basis, the company posted a loss of $1.28 a share. Analysts polled by FactSet had expected a loss of $1.47 a share.

The loss recorded in the quarter was due to a charge of $3.62 a share for the acquisition of Cidara Therapeutics. In November last year, Merck agreed to buy Cidara in a $9.2 billion deal intended to bolster its respiratory portfolio.

The company has been adding to its portfolio as it braces for Keytruda to lose the protection of its main U.S. patent. This patent expires in 2028, opening the door for lower-cost versions to compete.

Write to Nicholas G. Miller at [e-mail]

(END) Dow Jones Newswires

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