Merck (NYSE:MRK), the U.S. drugmaker, posted a first-quarter profit, which surpassed Wall Street’s expectations, on the back of bubbly sales of its blockbuster cancer drug Keytruda.
Net income in the first quarter fell to US$736mn, or 27 cents per share, down from US$1.55bn or 56 cents per share, in the same quarter last year, as the group took a US$1.4bn charge related to its collaboration with Eisai Company.
On an adjusted basis, however, the pharmaceutical giant earned US$1.05 per share, which beat the consensus estimate of US$0.99.
The company fared less well on the sales front, reporting revenue of $10.04bn in the quarter and slightly missing Wall Street’s forecast of US$10.09bn.
Merck increasingly depends on Keytruda, one of a number of promising oncology treatments, which are seen as strong alternatives to chemotherapy.
Keytruda brought in revenue of US$1.46bn in the first quarter, up from the US$1.4bn which analysts had expected.
Merck has narrowed its full-year 2018 revenue to between $41.8bn and $43.0bn and also lowered its full-year 2018 GAAP earning per share to a range from $2.45 to $2.57 to incorporate the Eisai collaboration.
Shortly after the bell, Merck shares were flat at US$58.85.