Merck & Co Inc (NYSE:MRK, ETR:6MK), the pharmaceutical firm, saw its shares tick 3.5% higher after its cancer drug Keytruda helped it post a profit and sales beat.
Revenues during the group’s first quarter reached US$15.78 billion, topping analysts’ expectations of US$15.2 billion.
Merck’s sales beat allowed the company to report adjusted earnings per share of US$2.07, a significant improvement on Wall Street’s prediction of US$1.88.
Both full-year sales and earnings forecasts were raised as a result of the first quarter outperformance.
While the group’s cancer drug helped boost performance, Merck is preparing for when its patent expires in 2028 by delving into new revenue streams and enacting cost-cutting measures.
Meanwhile, Merck’s smaller competitor Bristol-Myers Squibb Co (NYSE:BMY, ETR:RM, OTC:BMYMP) also reported first-quarter results, albeit to a less welcoming reception.
Shares in the group opened 6% lower after it suffered a quarterly loss despite revenues topping Wall Street expectations.
Losses per share came in at US$4.40, compared to the US$4.44 predicted by analysts.
BMS explained the swing to a loss as being due to one-off charges relating to the US$14 billion acquisition of Karuna Therapeutics and a collaboration agreement with SystImmune.
Revenues during the period reached US$11.87 billion compared to market guidance of US$11.46 billion.
A US$1.5 billion cost-cutting plan was also announced, with the firm expected to sack 2,200 employees by the end of the year.