Merck & Co Inc (MRK.N) on Friday posted a higher-than-expected quarterly profit and raised its full-year earnings forecast on resilient demand for its blockbuster cancer therapy Keytruda during the COVID-19 pandemic, sending its shares up 3%.
The company said it was planning to begin human studies of an experimental coronavirus vaccine it acquired through its acquisition of Themis Bioscience in the third quarter.
It has lagged some rivals that have already begun late-stage trials with hopes of curtailing a pandemic that has hammered economies around the globe.
Merck is also developing a separate vaccine for the coronavirus in collaboration with research non-profit IAVI and developing an antiviral therapy for COVID-19 in a mid-stage study along with Ridgeback Bio.
Quarterly sales of Keytruda, Merck’s key growth driver, rose nearly 29% to $3.39 billion, beating the average estimate of $3.13 billion, according to Refinitiv data.
However, Merck said sales of its vaccines and other treatments were hurt as patients avoided doctor offices due to the COVID-19 pandemic, leading to a $1.6 billion hit to its second-quarter sales.
Pfizer Inc (PFE.N) and Eli Lilly (LLY.N) also reported second-quarter results this week that highlighted the same impact on sales from a drop in visits to doctors.
Merck sees a $1.95 billion hit to 2020 revenue from the pandemic.
The company said it now expects full-year adjusted profit of between $5.63 to $5.78 per share, compared with its prior forecast of between $5.17 and $5.37.
Excluding items, Merck earned $1.37 per share, beating estimates of $1.04, according to IBES data from Refinitiv.
Total sales fell 7.6% to $10.87 billion, but beat analysts’ estimates of $10.39 billion.
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