Merck Reports 46% Surge in Q3 Net Profit and Raises Full-Year Revenue Guidance to Up to $60.2 Billion

Special Topic: Focus on US Stock Market Q3 2023 Earnings Reports

Global pharmaceutical giantMSDStrong performance in the third quarter raises full-year sales forecast again.

On October 26 local time, Merck & Co., Inc. (MRK.US) announced its financial results for the third quarter of 2023, with global revenue reaching $15.962 billion, a year-on-year increase of 7%. Excluding the impact of the COVID-19 oral drug Molnupiravir, the year-on-year growth was 6%; excluding the impact of Molnupiravir, COVID-19 oral drugs, and foreign exchange, the growth rate was 8%. The net profit for the third quarter was $4.745 billion, a year-on-year increase of 46%.

Based on the strong performance in the third quarter, MSD has once again raised its global sales forecast to $59.7 billion to $60.2 billion, including an approximate 2% negative impact from foreign exchange. When announcing the second-quarter results, MSD had already increased its full-year sales forecast to $58.6 billion to $59.6 billion.

MSD's strong performance in the third quarter was driven by the contributions of several star products.

Specifically, the sales of PD-1 cancer drug Pembrolizumab (K-drug) increased by 17%, reaching 6.338 billion US dollars. In the first three quarters, the total sales of K-drug reached 18.403 billion US dollars, a year-on-year increase of 19%. In 2022, the total global sales of K-drug were 20.937 billion US dollars, second only toAbbVieMSD's global "blockbuster drug" Humira. With the continuous expansion of indications, it is widely believed in the industry that Keytruda may become the new generation "blockbuster drug."

Sales of the HPV vaccine Gardasil/Gardasil 9, which can prevent cervical cancer, increased by 13% to reach $2.6 billion. Excluding foreign exchange impacts, sales grew by 16%. MSD stated that the product's growth is driven by strong demand, particularly in China, as well as price increases in the United States. In the first three quarters, the HPV vaccine’s sales reached $7.015 billion, representing a year-on-year increase of 29%.

Sales of the COVID-19 oral drug Molnupiravir increased by 47% to reach $640 million, with a 51% increase excluding foreign exchange impacts. In the above-mentioned raised full-year sales forecast, Merck & Co., Inc. expects to include approximately $1.3 billion in sales of the COVID-19 oral drug.

MSD CEO Robert M. Davis said, "Our strong performance in the third quarter is driven by the team's commitment to driving innovation and seeking breakthroughs for people. We will continue to push the boundaries of science, make rigorous investments to expand our pipeline, and apply our expertise to accelerate potentially transformative therapies to meet patients' needs."

Recently, MSD announced a significant collaboration in its oncology pipeline. MSD has obtained partial rights to three ADC candidate drugs from Japanese pharmaceutical company Daiichi Sankyo: Patritumab Deruxtecan (U-1402) targeting HER3, Ifinatamab Deruxtecan (I-DXd) targeting B7-H3, and Raludotatug Deruxtecan (R-DXd) targeting Cadherin-6 (CDH6). The upfront payment for this collaboration is $4.5 billion, with a total amount of up to $22 billion.

Notably, shortly after the official announcement of the collaboration with Daiichi Sankyo, MSD "returned" two ADC drugs from Chinese companies. Kelun Pharma announced that its controlling subsidiary, Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. (hereinafter referred to as "Kelun-Biotech"), received formal written notice from MSD on October 21, 2023, deciding to terminate the cooperation on two preclinical ADCs.

Regarding the "return," Kelun Pharmaceuticals stated in its announcement that the collaboration between Kelun Biotech and MSD on three clinical-stage ADC assets and four preclinical ADC assets has not been affected. Kelun Biotech continues to proceed as planned with the research, development, manufacturing, and commercialization of ongoing ADC assets. Moreover, Kelun Biotech and MSD can explore other cooperation opportunities for new target ADC assets.

As of press time, MSD's U.S. stock price increased by more than 1.5%.

Editor: Li Tong