Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Finance
February 02, 2017 12:00 AM

Merck scores a hit with Keytruda, watches spending in Q4

Associated Press
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Merck & Co.'s new cancer medicine Keytruda, a blockbuster nearly overnight, along with aggressive and ongoing cost cuts, helped to boost the company's fourth-quarter profits by 21%.

    With sales surging for Keytruda and a second newcomer, Zepatier for hepatitis C, the country's second-biggest drugmaker offset the impact of its latest round of generic competition for longtime big sellers, particularly cholesterol pill Zetia and allergy spray Nasonex.

    Keytruda is part of the new generation of immuno-oncology drugs, cancer medicines that work by stimulating the immune system to fight tumors. Launched in September 2014 for advanced melanoma, Keytruda has already surpassed annual sales of $1 billion and has since been approved as an initial treatment for lung cancer.

    Keytruda, which currently has the lead in the increasingly competitive immuno-oncology field, could get U.S. approval in March for two other tumor types.

    Zepatier, launched early last year in the crowded field of new drugs that cure hepatitis C in just a couple months, hit $229 million in fourth-quarter sales, putting it on pace to possibly hit $1 billion in sales this year.

    Generics and newer, branded drugs continue to press Merck, however, and quarterly sales dipped 1% to $10.12 billion, just shy of Wall Street forecasts for $10.2 billion.

    In the quarter, sales hit $483 million for Keytruda, while top sellers Januvia and Janumet for Type 2 diabetes had combined sales of $1.5 billion. Merck's veterinary medicines brought in $884 million, up 6%, mainly on rising sales of pet medicines such as Bravecto flea-and-tick killer.

    Fourth-quarter net income was $1.18 billion, or 42 cents per share. Adjusted for costs related to mergers, acquisitions and other non-recurring costs, per-share earnings were 89 cents per share, a penny better than industry analysts had projected.

    In premarket trading Thursday, Merck shares rose 55 cents to $62.65.

    The Kenilworth, New Jersey, company expects full-year earnings in the range of $3.72 to $3.87 per share, with revenue in the range of $38.6 billion to $40.1 billion. Analysts surveyed by FactSet were expecting $3.83 per share and sales of $40.13 billion, on average.

    For all of 2016, Merck reported net income of $5.7 billion, or $2.04 per share, on revenue of $39.8 billion.

    BernsteinResearch analyst Dr. Tim Anderson wrote to investors that Merck's 2017 revenue and earnings-per-share forecasts were "decent," calling that "a relief," given Merck's prior cautionary language and what its rivals have been predicting for 2017. Anderson noted Merck remains one of his top three picks in the industry.

    Merck shares have climbed 22% in the last 12 months.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Copy of 030821-Regionals-Highmark_WEB_i.jpg
    Highmark Q1 net income rose 250% on investment gains
    merger - money - puzzle
    Newly combined Advocate Health sees net gains in first post-merger report
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Daily Finance Newsletter: Sign up to receive daily news and data that has a direct impact on the business and financing of healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing