Merck Reports Strong Q3 Results but Lowers Full-Year Sales Guidance

Q3 Performance:
Merck reported strong third-quarter results with total worldwide sales of $16.7 billion, a 4% increase from Q3 2023, and a 7% increase excluding foreign exchange impacts.

Keytruda Growth:
Keytruda sales grew 17% to $7.4 billion, driven by increased usage globally and strong demand in earlier-stage and metastatic cancers.

New Launches:
Merck saw strong product launches, including Winrevair with $149 million in sales and Capvaxive, which received FDA approval and a CDC recommendation for use in adults 50 years and older.

Disappointing Sales:
Gardasil and Januvia experienced disappointing sales, with Gardasil down 10% year-over-year due to reduced demand in China, and Januvia sales down 49%.

Full-Year Guidance:
Merck lowered its full-year sales guidance to $63.6 billion to $64.1 billion and adjusted EPS guidance to $7.72 to $7.77, reflecting one-time charges associated with business development transactions.

Analyst Views:
Analysts noted that Merck's commercial story remains strong, with Keytruda's continued dominance and potential for growth through its developing cardiovascular portfolio and advancements in immunology and inflammation. However, concerns were raised about Gardasil's persistent sales issues in China.