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Merck raises full-year profit target after cancer drug sales help Q3 beat -Breaking

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© Reuters. FILE PHOTO: The Merck logo is seen at a gate to the Merck & Co campus in Rahway, New Jersey, U.S., July 12, 2018. REUTERS/Brendan McDermid/File Photo

(Reuters) -Merck & Co Inc raised its full-year adjusted profit forecast on Thursday, after strong demand for its blockbuster cancer drug Keytruda and recovery in sales of its non-COVID-19 vaccines helped it beat third-quarter profit estimates.

Sales of vaccines and physician-administered drugs have started to improve as hospitals and clinics adapt to the pandemic, helping Merck, which gets two-thirds of its revenue from drugs that need to be administered at the doctor’s office.

Now, the company expects its full-year adjusted profits to range between $5.65 to $5.70 per shares. This is an increase from its previous expectations of $5.47 – $5.57.

Merck’s oral COVID-19 candidate drug, molnupiravir, did not contribute to the forecast. This could allow Merck to increase its profit forecast if this drug is approved by the U.S.

Merck shares rose 1.1% prior to the opening bell.

The data showed that molnupiravir can reduce the chance of death or hospitalization for people most susceptible to severe COVID-19.

Merck has applied for an emergency use authorization to the drug with Ridgeback Biotherapeutics as a partner. This may change the treatment of COVID-19.

Merck’s net income rose from $2.94 Billion, which was $1.16 per share, to $4.57B (or $1.81) in the third quarter of last year to $1.81 per share.

Merck’s earnings were $1.75 per share, excluding one-time items. This beat estimates of $1.55 per shared.

Gardasil sales, which is a vaccine that prevents cervical cancer from human papillomavirus (HPV), soared nearly 68% to $1.99 Billion, surpassing analysts’ average estimate at $1.35 Billion, according to IBES data by Refinitiv.

Keytruda’s sales rose by 22% to $4.53Billion. This is more than the $4.31B estimate.

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