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Merck (MRK) Q1 2022 earnings

A pill with the Merck logo and the words ‘Molnupiravir’ and ‘COVID-19’ displayed on a screen in the background in this illustration photo taken in Poland on November 5, 2021.

Jakub Porzycki | NurPhoto | beautiful pictures

Merck sold $3.2 billion in an oral antiviral for Covid in the first quarter, driving strong revenue growth for the company.

Merck on Thursday significantly beat Wall Street profit and revenue forecasts, reporting earnings of $2.14 per share on revenue of $15.9 billion. The company raised its 2022 earnings guidance from $7.24 to $7.36 per share on $56.9 billion to $58.1 billion in revenue. Before that, it expected earnings per share of $7.12 to $7.27 on revenue of $56.1 billion to $57.6 billion.

The company’s shares were up about 3% in morning trading.

Here’s how Merck performs against what Wall Street expects, based on average analyst estimates compiled by Refinitiv:

  • Adjusted earnings: $2.14 per share vs. $1.83 expected
  • Turnover: 15.9 billion USD compared to 14.68 billion USD

Merck’s Covid The treatment drug, molnupiravir, has been selling well since the Food and Drug Administration approved it in December. It accounted for 20% of the company’s first-quarter revenue. However, Merck lowered its 2022 sales guidance for molnupiravir to between $5 billion and $5.5 billion, down from its previous outlook of $5 billion to $6 billion. Merck splits profits from the pill with partner Ridgeback Biotherapeutics.

Merck has shipped 6.4 million courses of molnupiravir around the world, distributing to about 500,000 patients to date, Chief Financial Officer Caroline Litchfield told analysts during the company’s earnings press conference this morning. Thursday. Although the US has ordered 3.1 million courses of molnupiravir, the FDA has prioritized PfizerTreatment with Covid Paxlovid due to greater effectiveness and fewer safety concerns.

Overall, pharmaceutical sales jumped 50% to $14.1 billion from the first quarter of 2021. Keytruda, an antibody treatment used to fight certain types of cancer, hit revenue of $4.8 billion, up 23% year over year. Chief Executive Officer Rob Davis said Keytruda is growing rapidly as a treatment for triple negative breast cancer in the metastatic stage and as an adjuvant therapy to reduce the risk of the disease returning.

Gardasil, Merck’s HPV cancer vaccine, grew 59 percent to $1.46 billion from 2021. Litchfield said demand remains substantial in China, the country with the highest HPV burden in the world. , despite the Covid shutdown in areas like Shanghai. Merck is building new facilities slated to open between 2023 and 2025 to increase global supply of the vaccine, Litchfield said.

“Vaccines against cancer in the HPV region are now only eligible for 9% of the global population, so we still have an important road ahead of us to save lives,” said Litchfield. and drive growth for Merck..

CNBC Health & Science

Read CNBC’s latest news on the Covid pandemic:

Correction: Merck splits the profits from molnupiravir equally with partner Ridgeback Biotherapeutics. An earlier version misspelled Ridgeback’s name.

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