Merck raised it’s full year profit forecast in last week’s release. EBITDA is expected to increase between 26% to 29% in the full year, according to the announcement made on Thursday, 11th November, 2021.
German Pharmaceuticals and chemicals company Merck reported a strong third quarter earnings report on 28th October, 2021- resulting in a 5% boost in stock prices the succeeding day. It is currently trading at $84.01.
“This was driven by investments in our key growth pillars, particularly in supportive return to care activities and in our early and late-stage pipeline, including Molnupiravir (made in partnership with Ridgeback Biotherapeutics). Other expenses increased by approximately $200 million, reflecting higher pension settlement costs,”said Caroline Litchfield- Chief Financial Officer of Merck.
Other key growth pillars for Merck were Keytruda (cancer powerhouse) and Gardasil which paved the way to a significantly exceeding earnings report. Cancer powerhouse Keytruda, which raked in sales of $4.5 billion, a 22% increase from third quarter in pandemic marred 2020.
Meanwhile, Gardasil topped estimates by whopping $2 billion in sales, a 68% increase from 2020.The shot rebounded from supply issues and its pandemic-crippled performance in 2020.
Providing information on the contribution of the vaccines in strong earnings, Merck CFO further announced that the company expects the global opportunity to be approximately $5 billion to $7 billion through 2022, including $0.5 billion to $1 billion expected to be realized this year. This assumes emergency use authorization in December.
“If our post exposure prophylactic trial is successful, with an expected readout in the spring, there is potential upside to these estimates,” said Frank Clyburn, Merck’s president of human health.
Merck generated revenue of $13.2 billion, a 20% increase from the same quarter a year ago. The revenue figure exceeded analysts estimates by a whopping $900 million. Earnings per share came in at $1.75, which topped the consensus estimate of $1.55.
As a result, Merck raised its guidance that expects a sales growth of 14% to 15% and an annual revenue from a range of $46.4 to $47.4 billion to $47.4 to $47.9 billion.
Merck made 17% growth in quarter 3, excluding the impact of foreign exchange.
“In the fourth quarter, we will anniversary that effect, and we expect a more normalized year-over-year growth rate as a result. Our operating margin in the third quarter benefited from very strong revenue performance, including the normal seasonality of our vaccine business. As we move through the fourth quarter, we expect operating margins to normalize due to this seasonality and phasing of spend. More broadly, as we look out to 2024, we remain confident in our revenue potential and continue to believe it is underappreciated,”said Caroline Litchfield.
As per the company’s website these are the Key Developments since Quarter third earnings report-
On November 4, U.K.’s Medicines and Healthcare Products Regulatory Agency Authorized Molnupiravir for the Treatment of Mild-to-Moderate COVID-19 in Adults with a positive SARS-CoV-2 Diagnostic Test and who have at least One Risk Factor for Developing Severe Illness. Applications Remain Under Review by Other Regulatory Authorities, Including U.S. Food and Drug Administration and the European Medicines Agency.
On November 8, Merck (NYSE: MRK), known as MSD outside the United States and Canada announced its pending acquisition of Acceleron Pharma Inc.
(Nasdaq: XLRN) has been cleared by the competition authorities in Germany and Austria.Merck and Ridgeback announced on November 9 that the U.S. Government will purchase 1.4 Million additional courses of Molnupiravir, an investigational Oral Antiviral Medicine, for the treatment of Mild-to-Moderate COVID-19 in at-risk adults.
On November 10, Merck and Ridgeback announced Japanese Government to purchase 1.6 Million courses of Molnupiravir, an investigational Oral COVID-19 antiviral medicine, upon authorization or approval.