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Drug giant Merck’s net income increased more than 80 per cent to $5.8bn in the last quarter, as its top-selling cancer drug hit record sales.
Sales of Merck’s blockbuster drug Keytruda rose 10 per cent to $8.1bn in the three months to the end of September, up from $7.4bn from the same period a year ago, the company said on Thursday.
Merck edged up its full-year earnings guidance range to $8.93-$8.98 a share, from its previous forecast of $8.87-$8.97.
The New Jersey-based company reported quarterly earnings per share of $2.32, above analysts’ estimates of $2.16, according to Bloomberg.
Shares in Merck jumped at the end of September after rival Pfizer inked an unprecedented pricing deal with US President Donald Trump. The agreement lifted shares for most big pharmaceutical companies as investors said it removed a significant pricing uncertainty for the sector.
Yet, Pfizer remains the only US drug company to sign a deal with the White House. Merck executives are likely to address the prospects for a Trump pricing agreement when they speak to Wall Street analysts on Thursday.
Despite its recent share price rally, Merck’s stock is down 13 per cent so far in 2025.
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Merck’s earnings took a hit last quarter after it reported slumping sales of its human papillomavirus vaccine called Gardasil. In February, Merck said it stopped shipping the vaccine to China as demand slowed.
In the most recent quarter, the vaccine’s sales fell 25 per cent from a year ago. Excluding China, Gardasil’s sales dropped 2 per cent as a temporary bump in sales in Japan subsided, the company said.
While the US and European drug regulators continue to approve Keytruda for different cancers, supporting its sales in the near term, it faces a patent cliff in 2028 which is expected to hit future earnings. US government price-setting rules could also kick in as soon as 2028.
This month, Merck said it completed its acquisition of Verona Pharma, a biotech focused on lung disease that the company acquired in July.
