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Merck posts better-than-expected 1Q profits due to sales of its drug Keytruda

Last updated: 14:59 01 May 2018 BST, First published: 14:39 01 May 2018 BST

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The pharmaceutical giant did not meet Wall Street's expectations for sales forecasts

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.

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