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Merck beats on Keytruda strength and raises full-year revenue outlook
Merck reported second-quarter revenue of $16.6 billion and lifted its full-year forecast as Keytruda sales topped estimates and QLEX adoption accelerated.
Merck reported higher-than-expected second-quarter results, driven by strength in Keytruda, and raised its full-year revenue forecast, according to Reuters. The U.S. drugmaker posted quarterly revenue of $16.61 billion, up 5% year over year, compared with analysts' average estimate of $16.36 billion, based on LSEG data. Merck also reported a quarterly loss of 13 cents per share, including a $5.7 billion charge related to its acquisition of cancer drug developer Terns Pharmaceuticals.
Keytruda sales rose 5% to $8.37 billion in the quarter, topping analysts' estimate of $8.07 billion, with $463 million coming from its newer subcutaneous formulation, Keytruda QLEX. Reuters said the company attributed the beat to stronger-than-expected QLEX uptake, with Merck’s finance chief saying QLEX is on a path toward 30% to 40% adoption by the end of 2027.
Merck also reported Gardasil sales of $1.17 billion, slightly above consensus, while measles, mumps, rubella and chickenpox vaccine sales fell 3% to $592 million, below analysts' estimates, with the decline blamed primarily on lower U.S. demand. Reuters noted that Keytruda faces loss of key patent protections starting in 2028, and Merck’s CEO characterized the transition as more gradual than abrupt.