Merck & Co Inc (NYSE:MRK) has delivered fourth-quarter revenue and earnings that beat expectations, supported by strong sales of its cancer immunotherapy Keytruda. However, shares of the Rahway, New Jersey-based drugmaker fell in early New York trade after its 2023 outlooked fell short of expectations.
The company reported worldwide sales of $13.8 billion for the three months ended December 31, 2022, an increase of 2% from 4Q. Excluding the impact of foreign exchange, it noted the increase was 8%. Sales of Lagevrio, an investigational oral antiviral COVID-19 medicine, decreased 13% to $825 million. Adjusted earnings for the quarter came in at $1.62 per share, beating Street estimates of $1.53.
Full-year 2022 worldwide sales were 22% up from 2021 at $59.3 billion, while adjusted earnings came in at $7.48 per share.
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"2022 was an exceptional year for Merck, which is a testament to the profound impact our medicines and vaccines are having on patients globally," Merck chairman and CEO Robert Davis said in a statement. “I am extremely proud of what our talented and dedicated colleagues have accomplished scientifically, commercially and operationally.”
In 2022, the company said it augmented its pipeline through strategic business development, including the acquisition of Imago BioSciences and key agreements with Moderna, Orna Therapeutics, Orion Corporation and Kelun-Biotech
"Our science-led strategy is working as we continue to build a sustainable engine that will drive innovation and generate long-term value for patients and shareholders well into the next decade,” Davis added.
The company has guided for 2023 worldwide sales of between $57.2 billion and $58.7 billion and adjusted earnings per share of $6.80 to $6.95, falling shy of the $7.33 pencilled in by the Street.
Merck's shares traded 3.1% lower at $103.69 shortly before noon Eastern Time.
Contact the author at stephen.gunnion@proactiveinvestors.com