Merck's Gardasil Sees Over 50% YoY Sales Surge in Q3 Driven by Global HPV Vaccine Demand

US pharmaceutical giant Merck & Co., Inc. (MSD) recently released its financial results for the third quarter of 2018. The data showed that global sales of its Gardasil franchise reached $1.05 billion, representing a year-over-year increase of 55%, compared to $675 million in the same quarter last year. MSD noted that part of Gardasil’s growth was attributable to stockpiling by the US Centers for Disease Control and Prevention (CDC), while higher demand in other global markets, including Europe and China, also served as a significant driver of the product’s growth.

An executive of the company stated that, due to the unprecedented surge in global demand for HPV vaccines, the company expects greater growth for the Gardasil franchise in the future. During a recent conference call, Adam Schechter, President of Global Human Health at MSD, remarked on Gardasil’s performance, noting that global demand for the vaccine doubled in the past year alone. The vaccine is increasingly regarded as an anticancer vaccine against certain HPV-related cancers. Countries such as Australia have raised vaccination coverage to levels that may help achieve the goal of eliminating cervical cancer, setting a strong example for other nations.

Schechter also pointed out that policy changes in countries supported by Gavi, the Vaccine Alliance, are driving the growth in demand for Gardasil. Following its approval for entry into the Chinese market, commercialization preparations are being actively advanced. In addition to new demand from markets outside the United States, on October 11 this year, Gardasil 9 (9-valent HPV vaccine) received approval from the U.S. FDA to expand the eligible population to include men and women aged 27–45 years, for the prevention of certain cancers and diseases caused by the nine HPV types covered by the vaccine. Previously, the eligible population for Gardasil 9 in the U.S. market was limited to males and females aged 9–26 years. On July 24, the UK government announced a change to its previous HPV vaccination program, extending vaccination to boys aged 12–13 years to protect them against HPV-related cancers. In early July, "U.S.MedicineA case report published in the Journal of Dermatology indicated that MSD’s Gardasil demonstrated significant efficacy in treating cutaneous squamous cell carcinoma. Collectively, these factors will drive the Gardasil franchise to maintain very strong growth.

However, Tim Anderson, an analyst at market research firm Wolfe Research, questioned the aforementioned high-profile statements, as MSD executives did not provide a figure for potential peak sales.

To meet new demand, MSD has invested in building a Gardasil production facility. The company’s Chief Financial Officer, Rob Davis, revealed in a conference call that the company can continue to invest to support the product’s further development.

Notably, the strong Q3 performance came a year after Merck Sharp & Dohme (MSD) experienced a brief production halt of Gardasil due to a cyberattack. In Q3 of the previous year, the company had to repurchase up to $240 million worth of Gardasil from the CDC reserves, which adversely affected the product’s sales in Q3 2017. Davis previously stated that, depending on regulatory priorities, MSD could offset the prior year’s sales losses by replenishing the CDC reserves.

Overall, MSD’s vaccine franchise generated $2.2 billion in sales this quarter, a 13% increase from the same period last year. Despite a surge in Gardasil franchise sales, MSD’s shingles vaccine Zostavax recorded only $54 million in sales in Q3 2018 and $163 million in the first nine months of this year, compared to $234 million in the same quarter last year and $547 million in the first nine months of last year, due to intense competitive pressure from GlaxoSmithKline’s shingles vaccine Shingrix. The company predicts that Zostavax sales will continue to decline in the future due to adverse competitive impacts.(SinaPharmaceuticalsCompiled/Newborn)

Article reference source: 'Unprecedented' demand for Merck's Gardasil drives monster Q3

Source: Sina Pharmaceutical News