Merck 1Q Sales Rise on Continued Keytruda Growth -- Update

By Nicholas G. Miller

Merck reported higher first-quarter sales and raised its full-year earnings guidance as demand for its flagship Keytruda cancer drug continues to grow.

Sales rose 5% to $16.29 billion, boosted by 12% growth for Keytruda. Wall Street had expected $15.85 billion, according to FactSet.

The company has been adding to its portfolio as it braces for Keytruda to lose the protection of its main U.S. patent, which expires in 2028, opening the door for lower-cost versions to compete.

Last year, the FDA approved a form of Keytruda administered by injection rather than intravenously, which could help the company offset the impact of the patent expiration. Merck has said the new form of the drug, called Qlex, provides greater convenience as it can be offered in a wider variety of settings and can be given in one minute every three weeks as opposed to a 30-minute IV infusion.

In the first quarter, the company recorded $128 million in Qlex sales.

The company guided for full-year sales of $65.8 billion to $67 billion and adjusted earnings of $5.04 to $5.16 a share. That compares with its previous forecast of $65.5 billion to $67 billion in revenue and adjusted earnings of $5 to $5.15 a share.

For the first quarter, the company swung to a loss of $4.24 billion, or $1.72 a share, from a profit of $5.08 billion, or $2.01 a share, the year prior.

On an adjusted basis, the company posted a loss of $1.28 a share. Analysts polled by FactSet had expected a loss of $1.47 a share.

The loss recorded in the quarter was due to a charge of $3.62 a share for the acquisition of Cidara Therapeutics. In November last year, Merck agreed to buy Cidara in a $9.2 billion deal intended to bolster its respiratory portfolio.

Write to Nicholas G. Miller at [e-mail].

(END) Dow Jones Newswires

04-30-26 1020ET