Merck Q2 2023 Earnings: Cancer Drug & HPV Vaccine Sales Surge, Shares React
Merck surpasses quarterly expectations with strong growth in Keytruda and Gardasil sales, revises full-year revenue forecast upward despite acquisition-related charges.
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Highlights
- Merck exceeded Q2 2023 earnings estimates and raised its sales forecast driven by robust demand for cancer and HPV vaccines.
- Keytruda revenues climbed 19% to $6.3 billion, while Gardasil HPV vaccine sales jumped 47% to $2.9 billion.
- Despite posting a net loss due to a $10.2 billion charge from acquiring Prometheus Biosciences, revenue grew 3% to $15.04 billion.
In the second quarter of fiscal 2023, Merck (NYSE: MRK) delivered stronger-than-anticipated financial results, fueled by significant sales growth in its flagship cancer immunotherapy Keytruda and the Gardasil HPV vaccine. The company reported a net loss of $2.06 per share, reflecting a one-time $10.2 billion acquisition charge related to its purchase of Prometheus Biosciences, an autoimmune drug developer. This loss was narrower than analyst projections.
Overall revenue rose 3% year-over-year to $15.04 billion, surpassing market expectations. Keytruda sales increased by 19% to $6.3 billion, underscoring its continued dominance in oncology treatments. Gardasil sales surged 47% to $2.9 billion, driven by growing global vaccination efforts.
Conversely, revenue from Merck’s COVID-19 antiviral Lagevrio fell sharply by 83% to $203 million, reflecting reduced demand as the pandemic subsides.
Merck updated its full-year 2023 revenue guidance to a range of $58.6 billion to $59.6 billion, up from the previous $57.7 billion to $58.9 billion forecast. However, earnings per share guidance was lowered to $2.95–$3.05 from $6.88–$7.00, impacted by the acquisition-related charges and upfront licensing payments.
Despite early gains in trading following the earnings release, Merck’s stock remains down year-to-date amid broader market volatility.
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