Sales up at Merck in Q1, though it lowers its earnings outlook

Merck issued its results for the first quarter on Tuesday, reporting that worldwide sales rose 6% to $10bn, which included a 3% positive impact form foreign exchange.

The US-based drug making giant said first quarter GAAP earnings per share were 27 cents, which reflected a $1.4bn aggregate charge related to the formation of a collaboration with Eisai.

First quarter non-GAAP earnings per share were $1.05.

The board narrowed and raised its 2018 full-year revenue range to be between $41.8bn and $43bn, including a positive impact from foreign exchange of around 2%.

It also lowered its 2018 GAAP earnings per share range to be between $2.45 and $2.57, while narrowing and raising its full-year non-GAAP earnings per share range to be between $4.16 and $4.28.

That included a positive impact from foreign exchange of around 1%.

On the operational front, Merck noted that the results from its Phase 3 KEYNOTE-189 study were presented at AACR 2018 and Published in the New England Journal of Medicine, and showed KEYTRUDA in combination with pemetrexed and platinum chemotherapy reduced the risk of death by half when compared with chemotherapy alone as a first-line treatment for advanced nonsquamous non-small cell lung cancer.

Data from KEYNOTE-189 was now under review by regulatory authorities in the United States, Europe and Japan.

“Merck had a strong start to the year driven by KEYTRUDA, GARDASIL, BRIDION and Animal Health,” said Merck chairman and CEO Kenneth C Frazier.

“This provides good momentum as we continue to execute on our pillars of growth and look to deliver innovative medicines and vaccines that address unmet needs for patients around the world.”