Merck sees upturn in demand for non-COVID vaccines as quarterly sales exceed estimates

July 29 (Reuters) – Merck & Co (MRK.N) on Thursday reported quarterly revenue above Wall Street estimates, as sales of its vaccine Gardasil rebounded and demand for the blockbuster cancer drug Keytruda remained strong.

Sales of non-COVID-19 vaccines and physician-administered drugs are expected to pick up as hospitals and clinics begin to adjust to the impact of the pandemic, Merck executives told investors.

Merck, which has failed in its efforts to produce a coronavirus vaccine, expects to have late-stage data for its COVID-19 antiviral, molnupiravir, in October, CFO Caroline Litchfield said.

The US drug maker agreed in June to supply 1.7 million doses of the drug to the US government for around $ 1.2 billion once it is cleared by regulators. It is also in procurement talks with other countries.

Demand for Gardasil, its vaccine to prevent cancers linked to the human papillomavirus, rebounded sharply in the second quarter as patients began to catch up with routine medical visits skipped at the height of the pandemic.

Gardasil sales jumped 88% to $ 1.23 billion, beating analysts’ estimates of $ 991.38 million.

Recent improvements in the vaccine supply chain will result in “very strong sequential and year-over-year growth for Gardasil in the second half of the year, particularly in markets outside the United States,” said Franklin Clyburn, president. of Merck’s human health business. .

Sales of Keytruda cancer immunotherapy rose 23% to $ 4.18 billion in the quarter, according to estimates.

The main driver of growth for the company is on track to become the world’s best-selling drug by 2023.

Merck said Thursday it has the financial flexibility to consider deals of all sizes and will focus on assets that could strengthen its strength in the cancer market.

“We want to build on this strength and see ourselves as a company that over time can become a significant player in the field of oncology,” Merck’s new CEO Robert Davis said in a statement. appeal to investors.

“One of the areas where we continue to think we don’t need to go is in the very big synergy-driven deals. I think we have enough firepower in our own pipeline,” he said. he added.

The company’s second-quarter sales rose 22% to $ 11.40 billion, beating estimates of $ 11.10 billion.

Merck reported adjusted earnings of $ 1.31 per share for the quarter, according to analyst estimates. Its share fell by 1% at the start of the session.

Report by Manas Mishra in Bengaluru; Editing by Shounak Dasgupta and Bill Berkrot

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