Merck's Q1 2024 Financial Growth Driven by Oncology and Vaccines

Financial Performance Highlights

Merck & Co., Inc. (NYSE: MRK), known as MSD outside the United States and Canada, reported a 9% increase in total worldwide sales, reaching $15.8 billion in the first quarter of 2024. Excluding the impact of foreign exchange, sales growth was 12%. Key drivers included strong performance in the oncology and vaccines segments.

Product Sales Performance

KEYTRUDA, Merck’s leading oncology drug, saw a sales increase of 20%, totaling $6.9 billion. Excluding foreign exchange impacts, growth was 24%. This was driven by increased global uptake in earlier-stage indications and continued strong demand from metastatic indications.

GARDASIL/GARDASIL 9 also demonstrated robust growth, with sales increasing 14% to $2.2 billion, and 17% when excluding the impact of foreign exchange. Strong demand in China and favorable public-sector buying patterns in the U.S. contributed to this performance.

New Product Launch and Regulatory Approvals

Merck received FDA approval for WINREVAIR, a first-in-class treatment for adults with pulmonary arterial hypertension (PAH). WINREVAIR is designed to increase exercise capacity, improve WHO functional class, and reduce the risk of clinical worsening events. This approval marks a significant milestone in the cardiometabolic space.

Pipeline and Clinical Developments

In oncology, KEYTRUDA continues to expand its indications, with new approvals and clinical trials underway. Notably, KEYTRUDA received its first approval in Europe for use in adult patients with resectable non-small cell lung cancer (NSCLC) at high risk of recurrence. The FDA also granted Priority Review for KEYTRUDA as a frontline treatment for advanced endometrial cancer.

In vaccines, Merck shared positive Phase 3 results for V116, an investigational 21-valent pneumococcal conjugate vaccine designed for adults. Additionally, Merck is advancing the development of a new investigational multi-valent HPV vaccine and planning clinical trials for a single-dose regimen of GARDASIL 9.

In infectious diseases, Merck presented promising data from its HIV development programs, including a Phase 2 study of a once-weekly oral combination regimen for treating adults living with HIV.

Business Development and Acquisitions

Merck completed the acquisition of Harpoon Therapeutics, Inc., enhancing its oncology pipeline with novel T-cell engagers. Additionally, Merck proposed acquiring Elanco Animal Health Incorporated’s aqua business, aiming to broaden its aqua product portfolio.

Full-Year 2024 Financial Outlook

Merck has raised its full-year 2024 sales expectations to a range of $63.1 billion to $64.3 billion, with non-GAAP EPS now expected to be between $8.53 and $8.65. The outlook considers the ongoing global demand for key products and the impact of foreign exchange rates.

Highlights

• Merck reported a 9% increase in Q1 2024 sales, reaching $15.8 billion.
• KEYTRUDA sales grew 20% to $6.9 billion, driven by strong demand in various indications.
• GARDASIL/GARDASIL 9 sales increased 14% to $2.2 billion, with significant growth in China and the U.S.
• FDA approved WINREVAIR for treating pulmonary arterial hypertension.
• Merck completed the acquisition of Harpoon Therapeutics and proposed acquiring Elanco’s aqua business.
• Raised full-year 2024 sales forecast to $63.1 billion - $64.3 billion, with non-GAAP EPS expected between $8.53 and $8.65.

Data Source: https://www.merck.com/news/merck-announces-first-quarter-2024-financial-results/