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Merck on Tuesday (Jul 30) cut its full-year earnings forecast, mainly due to one-time charges from its acquisition of eye-focused drug developer EyeBio.
Merck now expects 2024 earnings of US$7.94 to US$8.04 per share, down from its earlier forecast of US$8.53 to US$8.65, as it took a US$1.3 billion charge related to its acquisition of EyeBio.
Merck’s shares fell nearly 2 per cent in pre-market trading after the company reported its earnings. The stock price is up more than 17 per cent this year.
The company, however, slightly raised its full-year sales projections, following other big pharmaceutical companies like Roche, Johnson & Johnson and Bristol Myers Squibb, which lifted their forecasts when they reported earnings earlier this month.
New Jersey-based Merck also beat second-quarter results on strong growth of its blockbuster cancer immunotherapy Keytruda, the world’s best-selling prescription medicine.
Merck posted a profit of US$5.5 billion, or US$2.14 per share, for the quarter, compared with a loss of US$6 billion, or US$2.35 a share, a year earlier, when it took a large acquisition-related charge.
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Excluding one-time items, Merck said it earned US$2.28 per share. Analysts, on average, expected US$2.15 a share, according to LSEG data.
Sales in the quarter were US$16.1 billion, up 7 per cent from last year and above analysts’ expectations of US$15.8 billion.
Keytruda has been Merck’s most important revenue driver for years, with annual sales expected to rise well above US$30 billion before the drug loses patent protection toward the end of the decade.
Sales of Keytruda, which is approved to treat many types of cancer, hit US$7.3 billion for the quarter, up 16 per cent from a year ago. Analysts had expected sales of around US$7.1 billion.
Merck said it now expects full-year sales of US$63.4 to US$64.4 billion, up from its prior view of US$63.1 to US$64.3 billion. REUTERS
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