Merck profits (MRK) Q4 2024

Merck On Tuesday, he issued an income guide of 2025 per full year that did not reach the expectations of Wall Street, since the company temporarily arrested the shipments of a key vaccine in China.

Merck's shares fell 10% on Tuesday.

The pharmaceutical giant anticipates the sales of 2025 from $ 64.1 billion to $ 65.6 billion, less than the $ 67.31 billion than the analysts surveyed by LSE expected. In a statement, the company said the sales range reflects the decision to stop Gardasil's shipments to China from February and passing at least in mid -2025.

Gardasil is a vaccine that prevents HPV cancer, the most common sexually transmitted infection in the United States investors has been unstable during the past year due to problems with sales of that box office in China, since the country constitutes Most international product income.

The lower end of the Merck Income Guide assumes no more shipments in China and less than $ 1 billion in sales at the upper end.

Merck's CEO, Robert Davis, said in a gain call that Gardasil's inventory “remains elevated to levels higher than normal,” noting that the shooting demand has not been recovered at the level that the company expected due to factors such as factors The softer consumer spending. The shipping pause will allow a “faster reduction of excess inventory” and will help support the financial position of its marketing partner in China, Zhifei.

The Sales of the Toma will probably be fundamental for Merck's efforts to compensate for the losses of its best -selling Keytruda cancer therapy, which will lose exclusivity in 2028. Merk expects the expanded gardasil approval for men from 9 to 26 years in China in China It will eventually help increase the absorption of the shot.

“We believe that China still represents a significant long -term opportunity for gardasil given the large number of women, and now men with our recent approval, who are not yet immunized, and we are still committed and well positioned to maximize this potential for potential For potential for potential for potential for the potential for long -term potential, “Davis said.

Merck expects profits adjusted to the full year of $ 8.8 to $ 9.03 per share, which is generally in line with what analysts expected. The perspective reflects a position of approximately 9 cents per action related to the Merck license agreement with the private drug manufacturer Lanova.

Keytruda sales, other cancer medications and recently launched cardiovascular treatment of the company helped Merck overcome expectations for the fourth quarter of 2024.

This is what Merck reported for the fourth quarter compared to what Wall Street expected, based on an LSEG analysts survey:

• Profit per action: $ 1.72 adjusted compared to $ 1.62 expected
• Revenue: $ 15.62 billion compared to $ 15.49 billion expected

The company registered net income of $ 3.74 billion, or $ 1.48 per share, for the quarter. That is compared to a net loss of $ 1.23 billion, or 48 cents per share, during the period of year and more.

Excluding acquisition and restructuring costs, Merck won $ 1.72 per share for the fourth quarter. The adjusted and non -adjusted profits reflect a position of 23 cents per action related to the recent Merck license agreements, including an agreement to develop an experimental obesity pill of a Chinese drug manufacturer.

Merck raised $ 15.62 billion in revenues for the quarter, 7% more than the same period of the previous year.

The Merck Pharmaceutical Unit, which develops a wide range of drugs, booked $ 14.04 billion in revenues during the fourth quarter. That rose 7% since the same period a year ago.

Keytruda registered $ 7.84 billion in revenues during the quarter, 19% more than the period of year and more. Analysts were waiting for sales of $ 7.63 billion, according to Streetacount estimates.

This increase was driven by a greater absorption of Keytruda for previous stage cancers and a strong drug demand for metastatic cancers, which spread to other parts of the body.

Gardasil raised $ 1.55 billion in sales, 17% less than the fourth quarter of 2023. That is slightly below the $ 1.58 billion that analysts expected, according to Streetacount estimates.

Merck's type 2 diabetes treatment, Januvia, also saw sales fell to $ 487 million during the quarter, 38% less than the same period of the previous year. The company said the decrease was mainly due to the lowest prices in the US, the supply limitations in China and the continuous competition of cheaper generic drugs in international markets.

That occurred below the estimate of analysts of $ 500 million for the period, according to Streetacount.

Januvia is one of the 10 medications subject to Medicare medication price negotiations, a policy under the inflation reduction law that aims to make expensive medications more affordable for older Americans. The new negotiated prices for that first drug round enter into force in 2026.

Merck's animal health division, which develops vaccines and drug medications, cats and cattle, recorded almost $ 1.4 billion in sales, 9% more than the same period a year ago. The company said the highest prices for products throughout the portfolio promoted that increase.