Strong Oncology and Animal Health …
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Total Revenue: $16.7 billion, an increase of 4% (7% excluding foreign exchange impact).
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Human Health Sales Growth: 8%, primarily driven by Oncology.
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Animal Health Sales Growth: 11%.
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KEYTRUDA Sales: $7.4 billion, a growth of 21%.
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GARDASIL Sales: $2.3 billion, a decrease of 10%.
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VAXNEUVANCE Sales: Increased 13% to $239 million.
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WINREVAIR Sales: $149 million.
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Gross Margin: 80.5%, an increase of 3.5 percentage points.
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Operating Expenses: $8.5 billion, including $2.2 billion in acquisition-related charges.
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Earnings Per Share (EPS): $1.57.
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2024 Revenue Guidance: $63.6 to $64.1 billion, representing 6% to 7% growth.
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2024 EPS Guidance: $7.72 to $7.77.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Merck & Co Inc (NYSE:MRK) reported a 4% increase in revenues for the quarter, or 7% on a constant currency basis, driven by strong performance in key areas like Oncology and Animal Health.
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KEYTRUDA sales grew 21% to $7.4 billion, with increased uptake in earlier-stage cancers and continued robust demand in metastatic indications.
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The company launched new products like WINREVAIR and CAPVAXIVE, which are performing well and have significant commercial potential.
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Merck & Co Inc (NYSE:MRK) has a diversified pipeline with more than 20 unique assets in Phase 3, indicating a strong potential for future growth.
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The company achieved important clinical and business development milestones, including positive Phase 2b/3 results for clesrovimab and expanded vaccination recommendations for CAPVAXIVE.
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GARDASIL sales declined by 10%, primarily due to reduced shipments to China, although there was strong growth in other regions.
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The company faces headwinds from the expiration of its agreement with J&J for immunology products REMICADE and SIMPONI.
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Merck & Co Inc (NYSE:MRK) anticipates continued decline in GARDASIL shipments to China into 2025, impacting overall sales.
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Operating expenses increased to $8.5 billion, including significant charges related to acquisitions, reflecting higher costs.
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The company is dealing with elevated inventory levels of GARDASIL in China, which may take time to work down and could affect future sales dynamics.
Q: Given the elevated inventory levels of GARDASIL in China, how should we think about the dynamics heading into 2025? A: Robert Davis, Chairman and CEO, explained that while there is a decline in shipments to China, Merck is focused on increasing promotional activities and expects growth driven by the potential approval for males next year. He anticipates China to contribute $2 billion to $3 billion annually over the next several years, with the male opportunity being a key growth driver.
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