Merck beats estimates with revenues of $16.3 billion

Merck & Co. ended the first quarter with revenues above Wall Street expectations, buoyed by growth in new products, including Winrevair and a new injectable formulation of the oncology blockbuster Keytruda. Sales for the period came in at $16.3 billion, above analysts' consensus of $15.8 billion. On an adjusted basis, the group posted a loss of $1.28 per share, after accounting for charges related to the $9.2 billion acquisition of Cidara Therapeutics. The stock rose as much as about 5 per cent in pre-market trading in the US.

The performance was driven in particular by Keytruda, whose sales grew 12% to $8 billion, exceeding expectations of $7.6 billion and confirming it as the world's best-selling prescription drug. The figure also includes $128m related to the new subcutaneous formulation Keytruda Qlex, which allows for faster administration than traditional infusion and is a central part of the product's lifecycle extension strategy ahead of patent expiry in 2028.

Winrevair, a treatment for pulmonary arterial hypertension, reported sales of $525 million, up 88% and above analysts' estimates, thanks to gradual expansion in the US and international markets such as Japan and Europe.

However, not all new products met expectations: the pulmonary disease drug Ohtuvayre generated revenues of USD 131 million, while the anti-pneumococcal vaccine Capvaxive stopped at USD 142 million, both below market expectations.

Overall, the results exceeded analysts' expectations, but investors' attention remains focused on the group's ability to sustain growth in the medium to long term by reducing its dependence on Keytruda. The Rahway-based company faces the prospect of increased competition from lower-priced alternatives in the coming years.