Merck MRK-N reported higher-than-expected second-quarter sales on Tuesday and raised its full-year revenue forecast on the strength of its top-selling cancer treatment Keytruda.
The U.S. drugmaker reported quarterly revenue of US$16.61-billion, up 5 per cent from a year earlier and above analysts’ average estimate of US$16.36-billion, according to LSEG data.
Merck reported a loss for the quarter due to a US$5.7-billion charge from its acquisition of cancer drug developer Terns Pharmaceuticals. The company’s reported loss in the quarter was 13 US cents per share, including the US$2.31 per share charge from the deal. Analysts had expected an adjusted loss per share of 27 US cents.
Sales of immunotherapy Keytruda, the world’s top-selling prescription medicine, rose 5 per cent to US$8.37-billion in the quarter, including US$463-million from its newer subcutaneous formulation, Keytruda QLEX. That exceeded analysts’ estimates of US$8.07-billion.
Stronger-than-expected QLEX uptake contributed to the Keytruda beat, chief financial officer Caroline Litchfield said in an interview.
“We’re at double-digit of QLEX as a portion of the total business in the United States, and we are very much on a path that takes us to the 30 per cent to 40 per cent adoption by the end of 2027,” she said.
Gardasil, Merck’s cancer-preventing HPV vaccine, generated sales of US$1.17-billion, slightly above the US$1.15-billion analyst consensus.
Sales of its measles, mumps, rubella and chickenpox vaccines fell 3 per cent to US$592-million in the quarter, below analysts’ estimates of US$608-million. The company said the decline was due primarily to lower U.S. demand.
“The data that we access suggest that the overall vaccines market in the United States has declined,” Litchfield said, adding that the mix of vaccines the company makes is faring quite well within that declining market.
Animal health sales rose 8 per cent to US$1.78-billion, slightly ahead of Wall Street projections of US$1.75-billion.
Merck raised its 2026 revenue forecast to US$66.3-billion to US$67.3-billion, from a previous range of US$65.8-billion to US$67.0-billion. The midpoint is slightly above the LSEG consensus forecast of about US$66.8-billion.
The company now expects 2026 adjusted earnings of US$2.66 to US$2.76 per share, including charges related to its acquisitions of Cidara Therapeutics and Terns Pharmaceuticals.