World News | Merck Tops Q3 Forecasts, as Health Systems Adapt to COVID-19

Washington, Oct 28 (AP) The blockbuster cancer treatment Keytruda and the vaccine Gardasil pushed Merck well past Wall Street's third-quarter expectations, even as COVID-19 sapped demand for another vaccine.

The drugmaker said Thursday that sales of its pneumonia vaccine, Pneumovax 23, tumbled 26% in the quarter to $277 million mainly because people in the United States prioritized preventive shots guarding against COVID-19 instead.

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Pneumovax sales had jumped 58% in last year's quarter before any coronavirus vaccines were on the market, as people sought to grab whatever protection they could heading into the winter cold and flu season.

Merck failed in its attempt to develop a vaccine to help fight the coronavirus, but it could soon start bringing in revenue from a potential treatment, molnupiravir. The company has asked regulators in both the US and Europe for authorisation of what would be the first pill to treat COVID-19.

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The US Food and Drug Administration has said a panel of outside experts will meet late next month to consider the treatment.

In the third quarter, Merck saw Keytruda revenue jump 22% to $4.5 billion, while sales of Gardasil vaccines against cancer-causing human papilloma virus infections soared 68% to nearly $2 billion.

Total company sales rose 20% to $13.15 billion, as net income jumped 55% to $4.57 billion.

Adjusted earnings totalled $1.75 per share.

Analysts expected, on average, earnings of $1.55 per share on $12.32 billion in revenue, according to FactSet.

Merck also said Thursday that it raised and tightened its 2021 forecast. It now expects full-year adjusted earnings of between $5.65 and $5.70 per share on $47.4 billion to $47.9 billion in revenue.

Analysts expect earnings of $5.63 per share on about $47.6 billion in revenue.

Merck said global health systems have largely adapted to the ongoing pandemic, which initially hurt overall sales as people postponed visits to both doctors and veterinarians.

Merck makes drugs for both people and animals. The company expects a 2021 revenue hit of less than 3% from COVID-19.

The drugmaker said Thursday it expects to make 10 million courses of its potential COVID-19 treatment, molnupiravir, this year and at least double that amount in 2022. It doesn't expect the drug to change its 2021 forecast.

Shares of Kenilworth, New Jersey-based Merck & Co Inc climbed 56 cents to $82.10 in early-morning trading. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)