Merck Crushes Earnings Expectations on Strong Keytruda Sales

Merck, a US pharmaceutical giant, reported a strong second-quarter sales performance that exceeded analyst estimates. The company's revenue reached $16.61 billion, a 5% increase from the same period last year. Keytruda, Merck's blockbuster cancer drug, was a major contributor to this growth, with sales rising 5% to $8.37 billion.

The success of Keytruda QLEX, an under-the-skin version designed to replace traditional IV infusion, was particularly notable. This newer formulation generated $463 million in revenue during the quarter and is already at a 'double-digit' share of US Keytruda sales. Merck's CFO, Caroline Litchfield, expects this adoption rate to reach 30% to 40% by the end of 2027.

Despite taking a $5.7 billion accounting charge related to the acquisition of Terns Pharmaceuticals, a cancer drug developer, Merck reported a net loss for the quarter. However, investors focused on Keytruda's growth potential and its increasing share of US sales. This led to an upgrade in Merck's full-year revenue forecast, with estimates now ranging from $66.3 billion to $67.3 billion.