Merck profit beats, coronavirus uncertainty weighs on forecast

Stock Market
© Reuters. FILE PHOTO: The Merck logo is seen at a gate to the Merck & Co campus in Linden, New Jersey © Reuters. FILE PHOTO: The Merck logo is seen at a gate to the Merck & Co campus in Linden, New Jersey

(Reuters) – Merck & Co Inc (N:) beat analysts’ estimates for quarterly profit on Tuesday on strong demand for its blockbuster cancer drug, Keytruda, but expects coronavirus-led lockdowns to weigh on the treatment’s sales in the next few quarters.

Merck, which lowered its full-year 2020 profit forecast, said roughly 66% of its revenue is made up of drugs that are administered at a doctor’s office, including Keytruda, and social distancing measures are hitting their sales.

“The company anticipates reduced demand for its physician-administered products while pandemic-related access measures remain in place,” Merck said.

The company also said it was suspending its share buyback program.

Sales of Keytruda jumped 45% in the first quarter to $ 3.28 billion.

Net income attributable to shareholders rose to $ 3.22 billion, or $ 1.26 per share, in the quarter from $ 2.92 billion, or $ 1.12 per share, a year earlier.

Excluding items, Merck earned $ 1.50 per share, beating estimates of $ 1.34 per share, according to IBES data from Refinitiv.

The company now expects full-year adjusted profit of $ 5.17 to $ 5.37 per share, down from its prior estimate of $ 5.62 to $ 5.77 per share.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Stock Market News

Leave a Reply

Your email address will not be published. Required fields are marked *