Key insights
- Merck reported a narrower-than-expected loss and raised its full-year profit forecast midpoint, driving shares higher in premarket trading. Keytruda and Winrevair sales beat estimates, indicating strong growth in cancer and respiratory segments. However, Januvia and Gardasil sales declined. The updated guidance and positive sales figures suggest a moderately bullish outlook for Merck and potentially the broader pharmaceutical sector.
By Deena Beasley
April 30 (Reuters) - Merck & Co on Thursday reported a loss for the first quarter as an acquisition-related charge offset a 5% increase in product sales driven by cancer and respiratory drugs.
Shares rose nearly 5% in premarket trading after the loss came in narrower than analysts had forecast.
The U.S. drugmaker's first-quarter revenue rose to $16.3 billion from $15.5 billion a year earlier and was ahead of the average Wall Street estimate of $15.8 billion, as compiled by LSEG.
Merck's adjusted loss for the quarter, including a $3.62 per share charge for the acquisition of antiviral drug maker Cidara Therapeutics, was $1.28 a share, while analysts expected a loss of $1.51 a share.
For the full year, Merck narrowed its previous forecast range, pushing up the midpoint. The company said it now expects a 2026 profit of $5.04 to $5.16 per share on sales of $65.8 billion to $67 billion, compared with a previous estimate of $5.00 to $5.15 per share on sales of $65.5 billion to $67 billion.
Merck said the outlook does not reflect any impact from its planned acquisition of biotech Terns Pharmaceuticals, which will result in a one-time charge of $2.35 per share.
Analysts have forecast Merck's 2026 profit at $5.12 per share on revenue of $66.6 billion.
Sales of blockbuster cancer immunotherapy Keytruda, the world's biggest-selling prescription medicine, rose 12% to $8 billion, beating analyst estimates of $7.6 billion. The total includes $128 million for a newer injected version of the drug, which had been available only as an infusion.
Sales of lung disease drug Winrevair rose 88% to $525 million, exceeding the $479 million expected by analysts.
Merck said sales of diabetes drug Januvia fell 28% to $574 million due to lower U.S. demand and pricing as well as generic competition in some international markets. Sales of human papillomavirus vaccine Gardasil fell 19% to $1.07 billion.
Animal health provided another bright spot for the company with sales in the quarter jumping 13% to $1.8 billion.
(Reporting By Deena BeasleyEditing by Bill Berkrot)