Home Business Merck (MRK) earnings Q1 2022

Merck (MRK) earnings Q1 2022

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Medicine pill is seen with Merck logo and words ‘Molnupiravir’ and ‘COVID-19’ displayed on a screen in the background in this illustration photo taken in Poland on November 5, 2021.

Jakub Porzycki | NurPhoto | Getty Images

Merck sold $ 3.2 billion of its oral antiviral treatment for Covid in the first quarter, fueling the company’s strong revenue growth.

Merck soundly beat Wall Street profit and revenue forecasts, reporting earnings of $ 2.14 per share on $ 15.9 billion in revenue. The company raised its 2022 earnings guidance to between $ 7.24 and $ 7.36 per share on $ 56.9 billion to $ 58.1 billion in revenue. It previously projected earnings per share between $ 7.12 to $ 7.27 on revenue of between $ 56.1 to $ 57.6 billion.

Merck’s stock rose nearly 2% in premarket trading.

Here’s how Merck performed compared to what Wall Street expected, based on analysts’ average estimates compiled by Refinitiv:

  • Adjusted earnings: $ 2.14 per share vs. $ 1.83 expected
  • Revenue: $ 15.9 billion vs. $ 14.68 billion

Merck’s Covid treatment, molnupiravir, has sold well since the Food and Drug Administration authorized the pill in December. It made up 20% of the company’s first-quarter revenue. However, Merck lowered its 2022 sales guidance for molnupiravir to between $ 5 billion and $ 5.5 billion, down from its previous outlook of $ 5 billion to $ 6 billion. Merck splits profits from the pill equally with its partner Ridgeback Therapeutics.

Overall, pharmaceutical sales grew 50% to $ 14.1 billion compared to first quarter 2021. Keytruda, an antibody treatment used against several types of cancer, booked sales of $ 4.8 billion, 23% growth over the same quarter last year. Gardasil, Merck’s HPV vaccine, grew 59% to $ 1.46 billion compared to 2021.

This is a developing story. Please check back for updates.

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