Merck posts better-than-expected results on Keytruda sales jump By Reuters

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<span>© Reuters. FILE PHOTO: The logo for Merck &amp; Co. is displayed on a screen at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly/File Photo</span><br />
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<p>By Michael Erman</p>
<p>(Reuters) -Merck &amp; Co reported better-than-expected fourth-quarter results on Thursday on strong sales of its cancer immunotherapy Keytruda, now the world&#8217;s biggest selling prescription medicine.</p>
<p>Keytruda sales jumped 21% to $6.6 billion as the company was able to increase use of the drug in earlier stage cancers, topping analyst forecast of $6.5 billion. </p>
<p>For the full year, the cancer drug generated $25 billion, surpassing peak sales of AbbVie (NYSE:)&#8217;s blockbuster arthritis drug Humira.</p>
<p>Keytruda is, however, set to lose its patent exclusivity by the end of the decade, and to offset the impact Merck has signed multiple deals over the last year, including a $5.5 billion payout to Japan&#8217;s Daiichi Sankyo for the right to co-develop three cancer drugs.</p>
<p>Merck raised its forecast for adjusted annual sales for new oncology products in its development pipeline to more than $20 billion from over $10 billion by mid-2030s.</p>
<p>It also lifted its mid-2030s outlook for cardiometabolic products to about $15 billion from more than $10 billion.</p>
<p>Merck reported adjusted earnings of 3 cents a share in the fourth quarter, despite taking a charge of $1.69 a share to account for the Daiichi deal. Analysts had expected a loss of 11 cents a share, according to LSEG data.</p>
<p>Revenue for the quarter rose 6% to $14.6 billion, compared with estimates of $14.5 billion.</p>
<p>Merck&#8217;s shares were up nearly 2% in premarket trading.</p>
<p>The drugmaker also said it has launched a restructuring program to optimize its manufacturing operations related to human and animal health, and expects to complete the program by the end of 2031.</p>
<p>Merck expects to record about $4 billion in cumulative pre-tax costs to implement the program. It took a $190 million charge related to the program in the fourth quarter.</p>
<p>The company forecast 2024 sales between $62.7 billion and $64.2 billion. Analysts, on average, are estimating 2024 sales of $63.5 billion.</p>
<p>The New Jersey-based drugmaker expects 2024 earnings of $8.44 to $8.59 per share, above Wall Street estimates of $8.42.</p>
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