Merck & Co raises forecasts again as new drugs prove worth

Pharma giant Merck & Co (NYSE:MRK) raised its forecasts as sales of its top cancer drug Keytruda again surpassed expectations.

The immuno-oncology treatment comfortably more than  doubled sales at US$584mln in the three months to March as its use as therapy for cancer continues to broaden.

Prescription drugs overall chipped in sales of US$8.2bn out of a total US$9.43bn, with the group total around US$200mln above consensus.

Hepatitis C drug Zepatier, like Keytruda one of Merck’s new wave of prescription treatments, also had a stellar quarter with sales jumping to US$378mln just a year after launch.  This helped offset slower sales of some of Merck’s older drugs such as Zetia and Vytorin.

Net income to March was $1.55bn, or 56 cents per share. Earnings, adjusted for one-offs were 88c per share.

For the full year, the group no expects earnings per share of between US$2.51 and $2.63 per share, a 1.6% rise from previous guidance in January.

Revenues should come in at between US$39.1bn to US$40.3bn, up from its January forecast for $38.6bn to $40.1bn.

Shares rose 1% to US$62.95.

Story by ProactiveInvestors