Merck Reports Strong Q2 Earnings Driven by Keytruda and New Treatments

Merck & Co. announced robust second-quarter results, surpassing Wall Street expectations with a revenue of $16.11 billion, marking a 7% increase from the previous year. The pharmaceutical giant's adjusted earnings per share reached $2.28, exceeding the anticipated $2.15. The growth was primarily fueled by strong sales of its leading cancer drug, Keytruda, which generated $7.27 billion in revenue, a 16% rise compared to the same quarter last year, outpacing analysts' forecasts. Despite the positive performance, Merck adjusted its profit guidance downward, now projecting adjusted earnings between $7.94 and $8.04 per share, a decrease from the earlier estimate of $8.53 to $8.65. The pharmaceutical division, which encompasses a diverse range of treatments, contributed significantly with $14.41 billion in revenue, reflecting a consistent demand for its oncology and vaccine products. In addition to Keytruda, Merck's Gardasil vaccine brought in $2.48 billion, showing a modest 1% growth, attributed to higher U.S. prices but impacted by lower sales in China due to shipment delays. The newly launched cardiovascular drug, Winrevair, generated $70 million in its first quarter, exceeding expectations despite being slightly below the projected $81.5 million. Overall, Merck's performance highlights the continued strength of its oncology portfolio and the successful introduction of new therapies, even as it navigates challenges in certain markets.