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Key Takeaways
- Merck & Co. on Thursday reported a surprise adjusted profit for the fourth quarter as sales of its Keytruda cancer drug and Gardasil HPV vaccine soared.
- The pharmaceutical firm predicted better-than-expected full-year earnings per share.
- The news sent Merck shares to an all-time high in intraday trading Thursday.
Merck & Co. (MRK) shares traded at an all-time high Thursday after the pharmaceutical company posted a surprisingly positive adjusted profit after sales jumped for its cancer drugs and vaccines.
The company reported a fourth-quarter loss of $1.23 billion, attributable to charges it took related to a collaboration with Japan’s Daiichi Sankyo to develop three cancer treatments. Taking out those costs, Merck’s earnings per share (EPS) came in at 3 cents. Analysts had been anticipating a loss. Revenue was up 6% to $14.63 billion, more than estimates.
The gains were driven by demand for Merck’s popular cancer medicine, Keytruda, which had a 21% jump in sales, and its human papillomavirus (HPV) vaccine, Gardasil, which registered a 27% sales increase.
Chief Executive Officer Robert Davis said that Merck reached more than half a billion people with its medicines in 2023, and that the company invested about $30 billion in research and development (R&D) in the last year.
Merck noted it anticipates full-year EPS of $8.44 to $8.59, beating expectations. It sees sales in the range of $62.7 billion to $64.2 billion, in line with forecasts.
Shares of Merck gained 4.7% to finish Thursday’s session at $126.42, an all-time closing high for the stock.