Merck & Co’s (NYSE:MRK) new blockbuster cancer drug Keytruda drove the pharma giant’s earnings higher in its latest quarter.
While other rival treatments have faltered, Keytruda has been approved in the US and elsewhere for new lung cancer patients in addition to its original indication for melanoma.
Lung cancer in the US is a market worth at least US$12bn a year.
Keytruda’s revenues more than doubled in the fourth quarter to US$483mln (US$214mln), easily outstripping growth in Merck's other products where with the exception of Pneumovax23 the revenue improvements were either modest or in decline.
That meant revenues overall in the last three months were little changed at US$10.1bn, while net earnings rose to US$1.18bn (US$978mln).
For 2017, further developments with Keytruda dominate Merck’s agenda. Four additional applications for non small cell lung cancer are ongoing, while a breakthrough treatment designation was awarded the drug for patients previously treated for urothelial carcinoma and B-cell lymphoma.
Full year revenues in 2016 were US$39.8bn (US$39.5bn), with earnings of US$2.04.
This year Merck is forecasting revenues to come in between US$38.6bn and $40.1bn after a 2% foreign exchange hit, while earnings will be between US$2.47 to US$2.62.
Kenneth Frazier, chief executive, said: “The momentum behind our pipeline and key product launches, including the continued growth and expansion of KEYTRUDA into new indications and markets around the world, further reinforces our company’s strategic direction.”
Shares rose 3% to US$63.83.