Merck beats by $0.14, beats on revs; reaffirms FY17 EPS; raises rev slightly (63.69)
- Reports Q2 (Jun) earnings of $1.01 per share, $0.14 better than the Capital IQ Consensus of $0.87; revenues rose 0.9% year/year to $9.93 bln vs the $9.75 bln Capital IQ Consensus. The growth was primarily driven by product launches and vaccines, largely offset by the loss of market exclusivity for several products, as well as lower sales in the diabetes franchise. Growth in oncology was due to higher sales of KEYTRUDA (+180% to $881 mln) as the company continues to launch the product with new indications globally. Strong momentum from NSCLC, as KEYTRUDA is the only anti-PD-1 approved in the first-line setting, contributed significantly to KEYTRUDA's overall growth. Growth in hepatitis C was driven by ZEPATIER, a medicine for the treatment of chronic hepatitis C virus genotypes 1 or 4 infection, due to ongoing launches globally. Additionally, the ongoing launch of BRIDION Injection 100 mg/mL, a medicine for the reversal of neuromuscular blockade induced by rocuronium bromide or vecuronium bromide in adults undergoing surgery, generated sales of $163 million and also contributed to growth during the second quarter of 2017. Growth in vaccines was primarily driven by higher sales of GARDASIL. Pharmaceutical sales reflect a decrease in the diabetes franchise of JANUVIA and JANUMET (-8% to $1.5 bln), medicines that help lower blood sugar in adults with type 2 diabetes, primarily due to lower sales in the United States, reflecting continued pricing pressure and lower customer inventory levels that were partially offset by continued volume growth. ZETIA/VYTORIN -45% to $549 mln.
- Co issues guidance for FY17, sees EPS of $3.76-3.88, excluding non-recurring items, vs. $3.85 Capital IQ Consensus Estimate; sees FY17 revs of $39.4-40.4 bln from $39.1-40.3 bln vs. $40.05 bln Capital IQ Consensus Estimate.