By Michael Erman
(Reuters) – Merck & Co posted better-than-expected first-quarter earnings and raised its full-year sales estimate on strength from its top-selling cancer drug Keytruda, human papillomavirus (HPV) vaccine Gardasil and its COVID-19 antiviral pill molnupiravir.
Revenue in the quarter rose 50% from a year ago to $15.9 billion, with most of that growth coming from sales of molnupiravir, which was approved in November. Total sales were more than $1 billion above analyst estimates of $14.7 billion, according to Refinitiv IBES data.
Excluding molnupiravir sales, revenue grew 19% in the quarter.
Merck reported net income of $4.31 billion, or $1.70 a share, for the quarter. Excluding one-time items, the company said it earned $2.14 a share, easily topping analyst estimates of $1.83.
Sales of Merck’s cancer immunotherapy Keytruda rose 23% to $4.8 billion, about $300 million more than analysts had forecast.
Gardasil, which prevents HPV-linked cancers, brought in $1.46 billion in the quarter, around $200 million more than Wall Street estimates, primarily driven by strong demand outside the United States, especially from China, the company said.
Molnupiravir sales were $3.2 billion, topping analyst estimates by around $100 million. The drug was developed with Ridgeback Biotherapeutics.
Enthusiasm for the pill once touted as a potential game changer for treating COVID-19 has waned since it was shown to be about 30% effective in reducing hospitalizations, far lower than a rival antiviral therapy from Pfizer Inc.
Merck expects $5 billion to $5.5 billion in molnupiravir revenue based on sales of 10 million treatment courses to around 40 countries, Chief Financial Officer Caroline Litchfield said in an interview.
“We have the capacity to supply more to the market and it really depends with what happens with the pandemic. It depends on whether we do see more outbreaks, new variants,” Litchfield said.
Merck raised it 2022 earnings forecast to $7.24 to $7.36 per share on sales of $56.9 billion to $58.1 billion, from its previous view of $7.12 to $7.27 a share on revenue of $56.1 billion to $57.6 billion.
Merck shares, which are up about 10% for the year, closed at $84.41 on the New York Stock Exchange on Wednesday.
(Reporting by Michael Erman; Editing by Bill Berkrot)
