Marko Georgiev
Merck (NYSE:MRK) is buying and selling decrease premarket on Thursday as This fall earnings fell and the corporate supplied an FY23 adjusted EPS outlook which is seen decrease than consensus.
This fall non-GAAP EPS declined -10.5% Y/Y to $1.62. Income grew +2.3% Y/Y to $13.83B, excluding the influence of overseas change gross sales have been up +8% Y/Y. Nonetheless, Each prime and backside line beat estimates.
Full 12 months 2022 gross sales elevated +22% Y/Y to $59.28B.
This fall gross sales have been pushed by blockbuster most cancers drug Keytruda, which grew +19% Y/Y to $5.45B. Full 12 months gross sales for the drug have been ~$20.94B, up +22% versus 2021.
Nonetheless, gross sales of COVID capsule Lagevrio (molnupiravir), developed with Ridgeback Biotherapeutics, fell -13% Y/Y to $825M in This fall. Full 12 months gross sales have been $5.68B.
Merck famous that its FY2023 income outlook contains about $1B of Lagevrio gross sales.
HPV vaccine GARDASIL/GARDASIL 9 gross sales declined -4% Y/Y to $1.47B.
Merck famous that Vaccines gross sales efficiency mirrored decrease gross sales of GARDASIL/GARDASIL, pneumococcal vaccine Pneumovax 23 and Rotavirus vaccine RotaTeq.
Pneumovax 23 gross sales fell -50.3% Y/Y to $145M, reflecting decrease U.S. demand because the market continues to shift towards newer grownup pneumococcal conjugate vaccines.
In the meantime, RotaTeq gross sales declined -34.7% to $139M. Merck stated the lower was primarily as a consequence of decrease gross sales in China, which benefited in This fall 2021 from elevated provide, and decrease gross sales within the U.S. largely as a result of timing of public-sector purchases.
Diabetes remedy Januvia/Janumet gross sales declined -34% Y/Y to $913M, reflecting generic competitors in sure worldwide markets, notably in Europe and the Asia Pacific area, and decrease demand and internet pricing within the U.S.
HIV drugs Isentress/Isentress HD (raltegravir) gross sales decreased +6% Y/Y to $167M.
Animal Well being gross sales fell -2% Y/Y to $1.23B.
Gross margin was 71.9%, in comparison with 71.4% in This fall 2021, primarily as a consequence of favorable product combine and overseas change.
Outlook:
Merck expects Full-Yr 2023 gross sales to be between $57.2B and $58.7B (consensus $58.31B), outlook contains about $1B of Lagevrio gross sales.
The corporate expects non-GAAP EPS to be between $6.80 and $6.95 (consensus $7.39).
MRK -2.79% to $104 premarket Feb. 2
