Manas Mishra and Michael Erman

(Reuters) -Merck & Co on Thursday reported quarterly profit and sales that beat estimates and raised its full-year forecasts on strong demand for top-selling cancer drug Keytruda, its Gardasil vaccine and COVID-19 antiviral pill molnupiravir.

U.S. Drugmaker shares rose 2.1%, to $86.15, before the opening bell. However, revenue rose 50%, to $15.9 billion. Most of this growth was due to the November approval of molnupiravir.

Refinitiv data shows that analysts expected $14.7 billion in sales. Revenue grew by 19% during the first quarter, excluding molnupiravir.

According to Millie Gray (an analyst at Informa Pharma Intelligence), robust sales will support Merck’s acquisition strategies as it seeks diversification before Keytruda loses exclusivity in 2028.

Merck’s Keytruda cancer immunotherapy therapy Keytruda sales rose 23 percent to $4.8 Billion, which is about $300 Million more than the analysts expected.

Gardasil is a preventive medicine that helps to fight cancers associated with human papillomavirus. Merck reported Gardasil brought in $1.46 Billion in quarter. That’s around $200 M more than Wall Street estimates.

Molnupiravir revenues topped analyst estimates by about $100 million to reach $3.2 Billion.

Ridgeback Biotherapeutics has developed the pill. However, enthusiasm for it is now waning. The drug was demonstrated to be 30% more effective at reducing hospitalizations than other antiviral treatments. Pfizer Inc. (NYSE:)

Based on 10 million courses sold to 40 countries, Merck anticipates a revenue of $5 billion to $5.5 Billion in molnupiravir sales. Caroline Litchfield, chief financial officer at Merck stated in an interview.

We have the ability to provide more market supply, but it all depends on what happens to the pandemic. Litchfield stated that it depends on whether there are more epidemics or new strains.

Merck’s earnings exceeded analysts’ estimates of $1.83 by a wide margin, earning $2.14 per share excluding one-time items.

This drugmaker increased its outlook for annual profits to $7.24 – $7.36 per shares and sales to $56.9billion to $58.1billion, up from $7.12 – $7.27 per share. Its previous estimate of $7.12 – $7.27 per share and revenue $56.1billion to $57.6billion was $7.12 – $7.27.