Merck Smashes Q2 Estimates with Strong Oncology Growth and New Product Momentum
Pharmaceutical giant Merck has reported strong second-quarter results, beating Wall Street estimates on both revenue and earnings. The company's $16.6 billion in sales for the quarter represents a 5% increase from last year, with its oncology portfolio and newer products driving growth.
The Keytruda franchise, including subcutaneous formulation Keytruda QLEX, generated combined sales of $8.4 billion, a 4% increase on a constant-currency basis. Keytruda's strong performance was driven by uptake in earlier-stage cancers, metastatic indications, and increased use in breast and cervical cancers.
Merck's growth was also fueled by newer products such as WINREVAIR, which posted $588 million in sales, a 75% increase year-over-year. The company's acquisition of Terns Pharmaceuticals during the quarter weighed down reported results with a massive $5.7 billion in-process R&D charge.
Looking ahead, Merck has raised its full-year revenue guidance to a range of $66.3 billion to $67.3 billion, above analyst consensus estimates. However, the company significantly cut its adjusted EPS guidance due to Terns-related charges and ongoing costs to advance MK-4208.