Merck Beats Q2 Expectations on Keytruda Strength
Merck posted better-than-expected second-quarter results on Tuesday due to the strength of its top-selling cancer treatment, Keytruda. The U.S. drugmaker reported quarterly revenue of $16.61 billion, up 5% from a year earlier and above analysts' average estimate of $16.36 billion.
The company's sales of immunotherapy Keytruda rose 5% to $8.37 billion in the quarter, including $463 million from its newer subcutaneous formulation, Keytruda QLEX. This exceeded analysts' estimate of $8.07 billion.
MERCK shares rose 0.6% to $128.54 in early trading after the company reported a loss for the quarter due to a $5.7 billion charge from its acquisition of cancer drug developer Terns Pharmaceuticals. The company's reported loss in the quarter was 13 cents per share, including the $2.31 per share charge from the deal.
MERCK raised its 2026 revenue forecast to $66.3 billion to $67.3 billion, from a previous range of $65.8 billion to $67.0 billion. The company cut its 2026 adjusted earnings forecast to $2.66 to $2.76 per share.
The company's outlook is becoming clearer ahead of Keytruda's biosimilar competition, with more than $70 billion in potential sales from its products by the mid-2030s, according to Scotiabank analyst Louise Chen.