Merck & Co. announced strong second-quarter results while updating its revenue outlook as new products have demonstrated significant growth. The pharmaceutical company raised its 2026 revenue forecast to between $66.3 billion and $67.3 billion, up from a prior range of $65.8 billion to $67 billion. However, Merck lowered its profit guidance following a $5.7 billion charge related to its acquisition of Terns Pharmaceuticals. The projected adjusted earnings per share are now expected to be between $2.66 and $2.76, reflecting this one-time charge and a $9 billion impairment linked to the acquisition of Cidara Therapeutics earlier this year. This adjustment brings the previous earnings estimate down from a range of $5.04 to $5.16 per share.
Merck’s net loss for the quarter amounted to $1.34 billion, equivalent to 54 cents per share, compared to a net income of $4.43 billion, or $1.76 per share, during the same period last year. Notably, revenue for the quarter reached $16.61 billion, marking a 5% increase year-over-year.
Sales of the immunotherapy drug Keytruda were noteworthy, generating $8.37 billion in the second quarter, which exceeded analyst expectations. Additionally, Merck’s newer products, including Winrevair and the pneumococcal vaccine Capvaxive, showed promising sales growth. Merck’s animal health division also performed well, generating $1.78 billion in sales, which surpassed estimates.
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