Investing.com – Merck stock (NYSE:MRK) gained more than 4% Thursday as the drug maker raised its annual forecast after its earnings shot past estimates in the third quarter.
Boosting the stock were also hopes that Merck may have a blockbuster in molnupiravir, an oral anti-Covid drug currently awaiting regulatory approval. The comany said if the emergency use approval comes through in December, the drug offers an opportunity of up to $7 billion in sales in 2022 including $1 billion in revenue this year.
Chief Financial Officer Caroline Litchfield has projected at least $5 billion in sales by the end of next year, assuming a December clearance.
Merck now expects 2021 sales to be $47.65 billion at midpoint, up from its prior guidance of $46.9 billion at center of the range. Adjusted profit per share is also seen rising by 25.5% compared to the previous forecast of a 22% growth at midpoint.
Molnupiravir has boosted the stock given it will be the world’s first proven anti-Covid oral drug. It is relatively cheap to make and easy to transport and the company has already signed up orders with governments. Several manufacturing tie ups are also in place even as more companies remain in contention to make the drug on a contractual basis for the company.
Adjusted profit per share was $1.75, beating analysts’ estimates by 20 cents, and revenue was 19% higher at $13.2 billion, this too surpassing Wall Street expectations.
Sales were boosted by Merck’s cancer vaccines, Keytruda and Gardasil.