Merck & Co Inc (NYSE:MRK) has reported a decline in first-quarter sales following an anticipated decline in sales of its Lagevrio (molnupiravir) coronavirus (COVID-19) treatment.
The drugmaker also raised and narrowed its guidance for full-year 2023 sales.
Merck reported sales of $14.5 billion for the three months to March 31, 2023, down 9% from a year earlier but still ahead of the $13.8 billion expected by Wall Street.
Lagevrio sales declined by 88% to $392 million year-over-year but that was countered by a 20% jump in sales of its immuno-oncology blockbuster Keytruda to $5.8 billion, while its human papillomavirus (HPV) vaccine Gardasil brought in $2 billion, an increase of 35% from 1Q 2022.
Adjusted earnings per share fell to $1.40 from $1.70 a year earlier but above the $1.32 expected by the Street.
The company now expects full-year sales of between $57.7 billion and $58.9 billion, including the negative impact of foreign exchange movements of approximately two percentage points. That also includes Lagevrio sales of about $1 billion, it said.
It raised its guidance for adjusted EPS to between $6.88 and $7.00.
Merck said its outlook doesn’t reflect any impact from its proposed $10.8 billion acquisition of Prometheus, which is expected to close in the third quarter and would result in a one-time charge to both GAAP and non-GAAP results of approximately $10.3 billion, or $4 per share.
The company’s shares were 1.4% lower at $111.85 by noon in New York.
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