Merck Beats Q2 Estimates on Keytruda Strength, Raises Full-Year Revenue Forecast

Merck reported higher-than-expected second-quarter sales on Tuesday and raised its full-year revenue forecast due to the strength of its top-selling cancer treatment Keytruda.

The U.S. drugmaker's quarterly revenue was $16.61 billion, up 5% from a year earlier and above analysts' average estimate of $16.36 billion.

Merck reported a loss for the quarter due to a $5.7 billion charge from its acquisition of cancer drug developer Terns Pharmaceuticals.

Sales of immunotherapy Keytruda rose 5% to $8.37 billion in the quarter, exceeding analysts' estimate of $8.07 billion.

CEO Rob Davis said the loss-of-exclusivity period for Keytruda would be 'more of a hill than a cliff,' with a shallow dip followed by a rapid return to growth.