Merck Reports Stronger-Than-Expected Sales for Keytruda

Merck has reported stronger-than-expected sales for its immunotherapy drug Keytruda, including a newer injectable form of the medication known as Keytruda Qlex. The pharmaceutical giant's results exceeded third-quarter estimates and have led to an upward revision in its adjusted profit outlook.

The company now anticipates adjusted earnings to range from $2.77 to $2.82 per share, representing a slight increase over its previous forecast of between $2.66 and $2.76 per share. This revised guidance takes into account a one-time charge of $400 million, or 12 cents per share, related to Merck's licensing agreement with Chinese cancer drugmaker SciBrunch.

Merck has also narrowed the lower end of its revenue projection for 2026, expecting sales between $66.8 billion and $67.3 billion. This revised range compares favorably to a previous outlook of $66.3 billion to $67.3 billion.

The company's strong performance is being driven in part by efforts to transition patients from the original intravenous version of Keytruda to its newer, more convenient under-the-skin injection form, Keytruda Qlex. This strategy aims to preserve market share and sustain blockbuster sales for the medication beyond the expiration of key patents in 2028.

Keytruda's sales have surged to a record high of $8.60 billion in the third quarter, surpassing analyst expectations of $7.73 billion. This impressive performance is partly attributed to strong sales of Qlex, which generated $830 million in revenue for the quarter, the highest quarterly figure since its launch in 2025.

Analysts had predicted Qlex would sell around $649 million during this period, but it exceeded those forecasts by a significant margin. The remarkable success of Qlex has sparked hopes that it could soon become a blockbuster product, capable of generating over $1 billion in sales for the company.

Merck's financial performance for the third quarter shows a net income of $5.07 billion, or $2.04 per share, which is lower than last year's figure of $5.79 billion and $2.32 per share.

The company's revenue has increased by 5% to $18.09 billion in the third quarter compared to the same period a year ago, with some costs excluded from earnings calculations. Excluding acquisition and restructuring expenses, Merck reported earnings of $2.49 per share for the quarter.

Merck's portfolio of newer products continues to gain momentum, driving significant revenue growth across various segments. Winrevair, a treatment for a rare and deadly lung condition, demonstrated remarkable sales performance in the quarter, generating $694 million in revenue - a 93% increase from the same period last year. Analysts had predicted lower sales of $645 million.

The Gardasil vaccine, which protects against cancers caused by HPV, also recorded impressive sales figures due to increased demand in the US market. With $2 billion in quarterly sales, it surpassed analysts' estimates of $1.76 billion. This strong performance comes after Merck faced challenges with elevated inventory levels and weak demand for the vaccine in China last year.

Meanwhile, Merck's animal health business posted $1.68 billion in sales for the third quarter, although this fell slightly short of analyst expectations. Overall, these robust results contribute to a positive outlook for the company, particularly as it continues to expand its portfolio of innovative treatments and vaccines.