Merck's Earnings Test: Can New Launches Offset Profit Squeeze?

Pharmaceutical giant Merck is set to report its second-quarter earnings on Tuesday, with investors eager to see if new product launches can offset mounting profitability pressures.

The company's pipeline progress has been a major focus for analysts, who expect Merck to post a loss of $0.29 per share on revenue of $16.4 billion for the quarter ended June 30.

While this would represent a sharp sequential improvement from the first quarter's $1.28-per-share loss, the negative results come as Merck navigates a portfolio transition beyond blockbuster cancer drug Keytruda.

Lipfendra, Merck's newly approved oral PCSK9 inhibitor for lowering cholesterol, is priced at $315 for a 30-day supply and could reshape the market if it overcomes concerns about dosing restrictions.