Merck posts better-than-expected quarterly results on soaring Keytruda sales

By Michael Erman

(Reuters) - Merck & Co on Thursday reported better-than-expected fourth-quarter results on strong sales of its cancer immunotherapy Keytruda, now the world's biggest selling prescription medicine.

Merck reported adjusted earnings of 3 cents a share in the quarter, despite having to reduce its profit by $1.69 a share to account for a $5.5 billion payout to Japan's Daiichi Sankyo for the right to co-develop three cancer drugs. Analysts, on average, had expected the company to lose 11 cents a share, according to LSEG data.

Revenue for the quarter rose to $14.6 billion from $13.8 billion last year. Analysts, on average, had expected sales of $14.5 billion.

Sales of Keytruda rose 21% to $6.6 billion as the company was able to increase use of the drug in earlier stage cancers, topping analyst forecasts of $6.5 billion. For the full year, Keytruda racked up $25 billion in sales, surpassing sales of AbbVie's blockbuster arthritis drug Humira at its peak.

Merck forecast 2024 sales of between $62.7 and $64.2 billion, suggesting growth of as much as 6.8% year over year. Analysts, on average, are estimating 2024 sales of $63.5 billion.

The New Jersey-based drugmaker expects earnings of $8.44 to $8.59 per share, above analyst estimates of $8.42.

The company also said it is launching a restructuring program to optimize both its human health and animal health manufacturing operations.

It did not disclose any other details. Merck recorded a $190 million charge to its GAAP results in the quarter related to the restructuring.

Including costs from deals other than the Daiichi transaction and restructuring costs, the company reported a net loss of 48 cents per share for the quarter.

(Reporting by Michael Erman; Editing by Bill Berkrot)