Merck stock was trading at $100.91 as of 09:49 AM EDT.
After reporting stronger-than-anticipated financial results for the third quarter of 2022, Merck (NYSE:MRK) saw its pre-market trading price increase on Thursday. The COVID-19 pill’s sales impact was minimized by Keytruda. In the midst of COVID-19 rehabilitation, Lagevro
Keytruda sales topped Street expectations to reach $5.3 billion with a 20% YoY gain, resulting in a 14% YoY increase in the quarter’s revenue to $15.0 billion. However, after surpassing $3 billion and $ 1 billion in Q2 and Q1, respectively, sales for Lagevrio, the COVID-19 medication Merck (NYSE:MRK) co-developed with Ridgeback Biotherapeutics, decreased to $436 million. Lacking the effects of Lagevrio and the exchange rate, growth was 14% YoY.
Human papillomavirus vaccines GARDASIL/GARDASIL 9 and diabetic drugs Januvia/Janumet brought in $2.3B and $1.1B with 15% YoY growth and 15% YoY fall, respectively, while sales from the Animal Health division fell by 3% YoY to $1.4 million.
Merck stock, earnings outlook
Gross margin for the quarter declined to 73.7% from 73.8% in the corresponding quarter a year earlier, and net income decreased by 29% YoY to $3.2 billion as R&D costs increased by 80% YoY to $4.4 billion mostly because of $887 million in intangible asset impairment losses related to the acquisition of ArQule, Inc. In line with the consensus estimates of $58.4 billion and $7.35 billion, respectively, Merck (NYSE:MRK) increased and narrowed its full-year guidance for revenue and adj. earnings per share to show $58.5billion – $59.0 billion and $7.32 – $7.37billion. Additionally, the business reduced its $5 billion to $6 billion projection from three months ago for Lagevrio sales to $5.2 billion to $5.4 billion for the full year.
Chief Executive Officer Rob Davis will follow Chairman Ken Frazier, according to Merck & Co., who announced the change on Wednesday. The new position will start on December 1. Frazier, who has long been a vital part of the company’s growth, began working for Merck over 30 years ago, and in 2011, he was appointed as the organization’s first Black CEO. He has guided the business through the difficult litigation surrounding the discontinued painkiller Vioxx and was instrumental in Merck’s 2009 acquisition of the American pharmaceutical company Schering-Plough, which included the acquisition of Keytruda, which would go on to become the company’s top-selling medication.
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