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Merck raised its full-year adjusted earnings forecast Thursday as third-quarter sales rose 5% and its newer Keytruda Qlex cancer treatment generated $830 million in sales. Quarterly earnings nevertheless fell as expenses increased.
The drugmaker said it now expects 2026 non-GAAP earnings of $2.77 to $2.82 per share, up from $2.66 to $2.76. It also raised the low end of its sales forecast to $66.8 billion from $66.3 billion, leaving the upper end at $67.3 billion.
The annual earnings forecast includes large one-time business-development charges: $3.62 per share for the Cidara acquisition, $2.31 for the Terns acquisition and a newly included $0.12 charge for a global license agreement with SciBrunch. Merck said its outlook does not assume additional significant business-development transactions.
Keytruda sales reach $8.6 billion
Worldwide third-quarter sales totaled $18.085 billion, compared with $17.276 billion a year earlier. Growth was 4% excluding foreign-exchange effects.
Combined sales of Keytruda and Keytruda Qlex reached $8.601 billion, up 6%. The total included $830 million from Qlex. Merck cited demand across several earlier-stage and metastatic cancer indications.
Winrevair sales rose 93% to $694 million. Gardasil and Gardasil 9 sales increased 14% to $1.995 billion, which Merck attributed primarily to U.S. public-sector purchasing patterns and higher net pricing.
The company said pharmaceutical sales benefited by about $550 million from the timing of purchases. Growth in several products was partly offset by declines in Bridion, Januvia and Janumet, and Lagevrio, along with lower alliance revenue from Koselugo.
Quarterly earnings decline
GAAP earnings per share fell to $2.04 from $2.32 a year earlier. Non-GAAP earnings per share declined to $2.49 from $2.58. Both current-quarter measures included the $0.12-per-share SciBrunch charge.
Merck attributed the earnings declines mainly to higher operating expenses as it invested in research and development and product launches, as well as higher net interest expense. GAAP results also reflected higher amortization of intangible assets and increased restructuring costs.
Merck said its earnings conference call would begin at 9 a.m. Eastern on Thursday.
JBizNews Desk | Rahway, New Jersey
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