Benzinga - by Vandana Singh, Benzinga Editor.
Merck & Co Inc’s (NYSE:MRK) fourth-quarter 2023 sales reached $14.63 billion, up 6% Y/Y, beating the consensus of $14.50 billion.
Excluding Lagevrio and the impact of foreign exchange, growth was 14%.
Pharmaceutical sales increased by 8% to $13.14 billion, driven by oncology, vaccines, and hospital acute care growth, partially offset by a decline in virology due to Lagevrio (COVID-19 treatment) and diabetes.
Cancer drug Ketruda sales grew 21% to $6.61 billion. Lagevrio’s fourth-quarter sales declined 77% Y/Y to $193 million, and Gardasil/Gardasil sales grew 27% to $1.87 billion.
Adjusted EPS came in at $0.03, down from $1.62 a year ago, surpassing the consensus loss of $(0.11), primarily due to the charge in 2023 related to the collaboration with Daiichi Sankyo and the unfavorable impact of foreign exchange.
Also Read: Medicare’s Historic Negotiations To Lower Drug Prices, Analysts Anticipate Upto Potential Price Cuts Of 60%.
“We also made investments of approximately $30 billion in research and development in our ongoing effort to discover, develop, and collaborate to propel the next generation of impactful innovations, said Robert Davis, chairman and CEO.
Guidance: Merck forecasts fiscal year 2024 sales of $62.7 billion -$64.2 billion versus the consensus of $63.31 billion.
The company sees 2024 adjusted EPS of $8.44-$8.59 compared to the consensus of $8.42.
In early January 2024, Merck announced the acquisition of Harpoon Therapeutics Inc (NASDAQ:HARP), which is expected to close in the first half of 2024 and result in a non-tax deductible charge of approximately $650 million of R&D expense included in non-GAAP results.
The guidance includes the impact of Harpoon’s transaction of full-year non-GAAP EPS of approximately $0.26 per share.
Read Next: Merck’s Multi-Billion Cancer Drug Keytruda Improves Disease-Free Survival In Advanced Bladder Cancer After Surgery, Data Shows.
Price Action: MRK shares are up 2.59% at $123.92 on the last check Thursday.
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