Merck & Co., a biopharmaceutical firm, recently revealed a net loss for the fourth quarter, in contrast to a profit recorded in the same period last year. This was a consequence of a significant charge, notwithstanding a 6 percent growth in sales. Yet, its adjusted earnings per share and quarterly sales exceeded analysts' predictions.
In anticipation of the market opening, Merck's stocks were trading at $123.43, which is a 2.19 percent or $2.65 increase on the New York Stock Exchange.
The company posted a $1.23 billion net loss attributable to itself, equivalent to $0.48 per share. This is a downturn from the prior year's fourth-quarter income of $1.18 per share or $3.02 billion.
The recent quarter's results were influenced by a $1.69 per share charge from collaboration agreements with Daiichi Sankyo. Omitting these charges, the quarter's adjusted earnings were $0.03 per share, a reduction from the $1.62 per share recorded in the equivalent quarter of the previous year.
A polled average of 18 analysts from Thomson Reuters anticipated that the company would report a $0.11 per share loss for the quarter. These estimates typically exclude unusual items.
Worldwide total sales in the quarter swelled by 6 percent to $14.63 billion, up from last year's $13.83 billion in the same quarter. Sales were buoyed by growth in oncology, vaccines, and hospital acute care, although they were hindered by declines in virology and diabetes due to LAGEVRIO. The market anticipated revenues of up to $14.50 billion for the quarter.
Sales rose 14 percent after disregarding Lagevrio and the Impact of Foreign Exchange.
Lagevrio sales dipped by 77 percent, dropping to $193 million. Without Lagevrio, worldwide sales grew by 11 percent. Without considering the impacts of Lagevrio and foreign exchange rates, the growth was 13 percent.
Pharmaceutical sales rose to $13.14 billion, an 8 percent increase. In particular, sales of KEYTRUDA and GARDASIL/GARDASIL 9 increased by 21 percent (22 percent in constant currency) to $6.61 billion, and 27 percent to $1.87 billion respectively. However, JANUVIA/JANUMET sales dwindled by 14 percent (or 13 percent in constant currency), down to $787 million, a drop from the previous year.
Driven by greater demand for companion animal products, Animal Health sales grew 4 percent to a total of $1.28 billion.
In the fourth quarter, Merck received FDA priority review of Biologics License Applications for V116, a pneumococcal conjugate vaccine in trials, and Daiichi Sankyo's and Merck's Patritumab Deruxtecan.
Additionally, Merck recently approved a new restructuring program (known as the 2024 Restructuring Program). This program aims to streamline the firm's Human Health global manufacturing network as shifts are made to new modalities in the future pipeline. It also aims to improve supply reliability and enhance the Animal Health global manufacturing network's efficiency.
For the fiscal year 2024, Merck anticipates adjusted earnings between $8.44 and $8.59 per share and sales between $62.7 billion and $64.2 billion.
Analysts predict an $8.42 earnings per share and $63.52 billion revenues in 2024.
Earlier in January, Merck announced its acquisition of Harpoon. This is set to be completed in the first half of 2024 and will result in a non-tax deductible charge of approximately $650 million of R&D expense included in adjusted results. The transaction's impact on the expected full-year adjusted earnings per share is approximately $0.26 per share, which is incorporated into the 2024 outlook.
