Merck topped third-quarter estimates and raised its adjusted profit outlook. Sales of Keytruda, including its newer injectable form Qlex, came in above analyst expectations.
Merck topped third-quarter estimates and hiked its adjusted profit outlook on Thursday, helped by stronger-than-expected sales of its immunotherapy Keytruda.
Merck now expects adjusted earnings of between $2.77 and $2.82 per share, up from a previous range of $2.66 to $2.76. The guidance includes a one-time charge of $400 million, or 12 cents per share, tied to a licensing agreement with the Chinese cancer drugmaker SciBrunch.
Qlex posts its best quarter since launch
Keytruda raked in $8.60 billion in sales for the quarter, beating the $7.73 billion analysts expected, according to StreetAccount. That includes $830 million for Qlex, the highest in a quarter since it launched in 2025, against $649 million expected.
The result suggests Qlex could soon be a blockbuster product, meaning one that brings in more than $1 billion in sales. Merck is positioning Qlex as a cornerstone of its growth strategy, aiming to move patients from the original intravenous version to the injection. The company has been on a deal spree as it races to offset generic competition after key patents for Keytruda begin expiring in 2028.
Revenue and earnings clear Wall Street targets
Adjusted earnings per share came in at $2.49 versus $2.08 expected, based on an LSEG survey of analysts. Revenue reached $18.09 billion, up 5% from a year earlier, against $17.31 billion expected.
Merck also narrowed the low end of its 2026 revenue guidance, now expecting sales between $66.8 billion and $67.3 billion. The previous outlook was $66.3 billion to $67.3 billion.
Other products also contributed. Winrevair, used to treat a rare, deadly lung condition, generated $694 million in sales, up 93% from a year earlier, while the Gardasil vaccine drew about $2 billion, topping the $1.76 billion analysts expected. Animal health sales of $1.68 billion came in slightly below estimates.
Source: CNBC
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