MRK
Merck & Co, INC
NYSE
8-K: Merck Reports Strong First Quarter 2024 Results Driven by Oncology and Vaccine Sales
Sentiment:
Quarterly Report
25 April 2024 6:41 AM
Merck's first quarter 2024 results show a 9% increase in total worldwide sales, reaching $15.8 billion, driven by strong growth in oncology and vaccine products.
Better than expected
Merck's first quarter sales and earnings exceeded expectations, driven by strong growth in key products.
The company raised and narrowed its full-year outlook, indicating increased confidence in future performance.
Summary
- Merck's total worldwide sales for the first quarter of 2024 were $15.8 billion, a 9% increase compared to the same period in 2023, or 12% excluding foreign exchange impacts.
- Key growth drivers included oncology, with KEYTRUDA sales increasing by 20% to $6.9 billion (24% excluding foreign exchange), and vaccines, with GARDASIL/GARDASIL 9 sales growing by 14% to $2.2 billion (17% excluding foreign exchange).
- GAAP earnings per share (EPS) was $1.87, while non-GAAP EPS was $2.07, both including a $0.26 per share charge for the acquisition of Harpoon Therapeutics.
- The company has raised and narrowed its full-year 2024 sales outlook to between $63.1 billion and $64.3 billion and non-GAAP EPS to between $8.53 and $8.65.
- Merck received FDA approval for WINREVAIR, a new treatment for pulmonary arterial hypertension, and made progress in clinical development across various therapeutic areas.
Sentiment
Score: 8
Explanation: The document conveys a positive sentiment due to strong sales growth, increased financial outlook, and strategic acquisitions. The company's performance in key therapeutic areas and the approval of a new drug contribute to the positive outlook. However, some negative aspects such as declining sales in certain products and foreign exchange impacts temper the overall sentiment.
Positives
- Strong sales growth in oncology and vaccines drove overall revenue increase.
- KEYTRUDA and GARDASIL/GARDASIL 9 showed significant sales growth, indicating strong market demand.
- The company received FDA approval for WINREVAIR, a new treatment for pulmonary arterial hypertension.
- Merck is expanding its pipeline and portfolio through strategic acquisitions and business development.
- The full-year 2024 financial outlook has been raised and narrowed, indicating increased confidence in future performance.
- Non-GAAP gross margin increased to 81.2% from 76.9% in the prior year.
Negatives
- JANUVIA/JANUMET sales declined by 24% due to lower pricing and demand.
- LAGEVRIO sales decreased by 11% due to lower demand in certain Asia Pacific markets.
- ROTATEQ sales declined by 27% due to timing of shipments and public-sector buying patterns.
- The company experienced a negative impact from foreign exchange, particularly the devaluation of the Argentine peso.
- The first quarter GAAP and non-GAAP EPS included a charge of $0.26 per share for the acquisition of Harpoon.
Risks
- The company faces risks related to currency exchange rate fluctuations, particularly the devaluation of the Argentine peso.
- There are challenges inherent in new product development, including obtaining regulatory approval.
- The company is exposed to litigation, including patent litigation, and regulatory actions.
- Merck is dependent on the effectiveness of its patents and other protections for innovative products.
- The company faces competition from other pharmaceutical companies and technological advances.
Future Outlook
Merck has raised and narrowed its full-year 2024 financial outlook, expecting sales between $63.1 billion and $64.3 billion and non-GAAP EPS between $8.53 and $8.65. The company anticipates continued strong global demand for key growth products in oncology and vaccines.
Management Comments
- Merck has begun 2024 with continuing momentum in our business.
- We are harnessing the power of innovation to advance our deep pipeline and are maximizing the impact of our broad commercial portfolio for the benefit of patients.
- We drove strong growth across key therapeutic areas, executed strategic business development, and in the U.S., we are now launching WINREVAIR, a significant new product in the cardiometabolic space for adults with pulmonary arterial hypertension, a progressive and debilitating disease.
- We have important opportunities ahead of us across all areas of our business, and we are highly focused on realizing them.
Industry Context
Merck's strong performance in oncology and vaccines aligns with broader industry trends, where these therapeutic areas are experiencing significant growth. The approval of WINREVAIR also highlights the increasing focus on innovative treatments for rare diseases. The company's strategic acquisitions and pipeline development efforts position it well to compete in the biopharmaceutical market.
Comparison to Industry Standards
- Merck's 20% growth in KEYTRUDA sales is a strong performance compared to other oncology drugs in the same class, such as Bristol Myers Squibb's Opdivo, which has shown more modest growth in recent quarters.
- The 14% growth in GARDASIL/GARDASIL 9 sales is also impressive, outpacing the growth of other vaccine products from competitors like Pfizer and GSK.
- The approval of WINREVAIR positions Merck as a leader in the pulmonary arterial hypertension space, where there are limited treatment options.
- Merck's non-GAAP EPS of $2.07 is competitive with other large pharmaceutical companies, such as Johnson & Johnson and AbbVie, which have reported similar earnings per share in their recent quarterly results.
- The company's full-year sales outlook of $63.1 to $64.3 billion is in line with the expectations for a company of its size and portfolio.
Stakeholder Impact
- Shareholders will benefit from the strong financial results and increased outlook.
- Employees may see positive impacts from the company's growth and success.
- Patients will benefit from the development of new treatments and therapies.
- Customers will have access to a broader range of products and services.
- Suppliers and creditors will benefit from the company's financial stability.
Next Steps
- Merck will host an Oncology Investor Event on June 3, 2024.
- The company has three PDUFA target action dates set by the FDA in the second quarter of 2024.
- Merck will continue to advance its clinical development programs and expand its pipeline through business development.
Key Dates
- April 25, 2024: Date of the earnings report and press release.
- June 3, 2024: Merck will host an Oncology Investor Event.
- June 17, 2024: FDA target action date for V116.
- June 21, 2024: FDA target action date for KEYTRUDA plus chemotherapy for endometrial carcinoma.
- June 26, 2024: FDA target action date for patritumab deruxtecan (HER3-DXd) for NSCLC.
Keywords
Merck, Oncology, Vaccines, KEYTRUDA, GARDASIL, WINREVAIR, Pharmaceuticals, Financial Results, Earnings, Sales, Acquisition, Pipeline, FDA Approval
MRK
Merck & Co, INC
NYSE
Sector: TBD
Filings with Classifications
Worse than expected
2 May 2025 4:10 PM
Quarterly Report
- Worldwide sales were down 2% year over year.
- Gardasil/Gardasil 9 sales declined significantly by 41% due to lower demand in China.
- Lagevrio sales decreased by 71% due to lower demand in the Asia Pacific region.
Delay expected
2 May 2025 4:10 PM
Quarterly Report
- The company has experienced manufacturing delays related to ProQuad and Varivax, and anticipates that some international markets will experience supply constraints during 2025.
Worse than expected
24 April 2025 6:45 AM
Quarterly Report
- Total worldwide sales decreased by 2% compared to the first quarter of 2024.
- The full-year 2025 non-GAAP EPS outlook was revised to reflect a negative impact from an anticipated one-time charge of approximately $0.06 per share related to the license agreement with Hengrui Pharma.
Delay expected
25 February 2025 4:19 PM
Annual Results
- The company is currently experiencing manufacturing delays related to Varivax and ProQuad which will result in supply constraints in 2025.
Worse than expected
25 February 2025 4:19 PM
Annual Results
- The company expects a significant decline in Gardasil/Gardasil 9 sales in China for 2025.
- The company expects U.S. sales of Keytruda to decline beginning in January 2028 due to government pricing under the IRA.
Better than expected
4 February 2025 6:45 AM
Earnings Release
- The company's full year sales of $64.2 billion were better than the $60.115 billion in the prior year.
- The company's full year GAAP EPS of $6.74 was better than the $0.14 in the prior year.
- The company's full year Non-GAAP EPS of $7.65 was better than the $1.51 in the prior year.
Better than expected
29 January 2025 6:27 PM
SEC Form 4
- The performance shares were paid out at 169 percent of target awards, indicating that the company exceeded its performance goals during the three-year period.
Better than expected
29 January 2025 6:25 PM
SEC Form 4 Filing
- The performance shares were paid out at 169 percent of target awards, indicating that the company exceeded its performance goals.
Better than expected
29 January 2025 6:23 PM
SEC Form 4
- The performance shares were paid out at 169 percent of target awards, indicating better than expected performance.
Better than expected
29 January 2025 6:21 PM
SEC Form 4 Filing
- The performance shares were paid out at 169 percent of target awards, indicating better than expected performance.
Better than expected
29 January 2025 6:19 PM
SEC Form 4 Filing
- The performance shares were paid out at 169 percent of target awards, indicating better than expected performance.
Better than expected
29 January 2025 6:17 PM
SEC Form 4 Filing
- The performance shares were paid out at 169 percent of target awards, indicating better than expected performance.
Better than expected
29 January 2025 6:14 PM
SEC Form 4 Filing
- The performance shares were paid out at 169 percent of target awards, indicating better than expected performance.
Better than expected
29 January 2025 6:12 PM
SEC Form 4 Filing
- The performance shares were paid out at 169 percent of target awards, indicating better than expected performance.
Better than expected
29 January 2025 6:09 PM
SEC Form 4 Filing
- The performance shares were paid out at 169 percent of target awards, indicating better than expected performance.
Delay expected
6 November 2024 4:05 PM
Quarterly Report
- Merck is currently working to incorporate guidance from regulatory authorities into the company's clinical trial design for its two prospective Gardasil 9 single-dose trials, consequently, the trials will not be started in 2024.
Worse than expected
6 November 2024 4:05 PM
Quarterly Report
- Net income attributable to Merck decreased in Q3 2024 compared to Q3 2023 due to significant acquisition charges and restructuring costs.
Worse than expected
31 October 2024 6:44 AM
Quarterly Report
- The company's GAAP and non-GAAP EPS were lower than the previous year due to significant charges related to business development transactions.
Better than expected
5 August 2024 4:02 PM
Quarterly Report
- The company's net income improved significantly compared to the same period last year, which had a net loss.
- The company's sales growth exceeded expectations, driven by strong performance in oncology and vaccines.
- The company's research and development expenses decreased due to lower charges for business development transactions.
Delay expected
5 August 2024 4:02 PM
Quarterly Report
- The company received a complete response letter from the FDA for patritumab deruxtecan due to manufacturing facility issues.
Worse than expected
30 July 2024 6:41 AM
Quarterly Report
- The full-year non-GAAP EPS outlook was lowered due to a one-time charge of approximately $1.3 billion, or $0.51 per share, for the acquisition of EyeBio.
Capital raise
30 May 2024 4:14 PM
Debt Issuance Announcement
- MSD Netherlands Capital B.V. raised $3.4 billion through the issuance of senior notes.
- The proceeds from the offering will be used for general corporate purposes.
Better than expected
3 May 2024 4:10 PM
Quarterly Report
- The company's sales and net income exceeded expectations due to strong performance in oncology and vaccines.
- Keytruda sales growth was higher than anticipated, driven by new indications and continued uptake.
- The company's gross margin improved due to favorable product mix and lower royalty rates.
Better than expected
25 April 2024 6:41 AM
Quarterly Report
- Merck's first quarter sales and earnings exceeded expectations, driven by strong growth in key products.
- The company raised and narrowed its full-year outlook, indicating increased confidence in future performance.
Worse than expected
26 February 2024 4:06 PM
Annual Results
- The company experienced a significant decrease in net income from continuing operations, with GAAP net income at $365 million and non-GAAP net income at $3.837 billion, which is worse than the previous year.
- The company experienced a substantial decline in Lagevrio sales, which is worse than the previous year.
Worse than expected
1 February 2024 6:39 AM
Quarterly Report
- The company reported a GAAP loss per share for the fourth quarter and a significantly lower EPS for the full year compared to the previous year, primarily due to charges related to collaborations and business development transactions.
- Non-GAAP EPS also declined significantly compared to the previous year, indicating a weaker financial performance despite excluding certain items.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.