Merck (MRK) winning report Q1 2025
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Merchant On Thursday, the winning guidelines of the year lowered and quoted the estimated costs for tariffs of $ 200 million and an indictment that is bound to a recently carried out deal.
The company now assumes that the adjusted profit from 2025 is between 8.82 and 8.97 US dollars, which has decreased slightly from an earlier outlook from $ 8.03 per share.
The company said that the expected tariff debt primarily reflects the taxes between the USA and China as well as Canada and Mexico. Merck has built up a robust presence in China, which is considered one of the most important markets of the company and houses some of its partners as well as for the production and research and development locations.
Merck noted that the new outlook for the planned tariffs of President Donald Trump for pharmaceuticals imported in the USA into account, which causes some drug manufacturers to strengthen their US manufacturing carriers.
This includes Merck, who has invested 12 billion US dollars in production, research and development of US dollars and expects to bring more than 9 billion dollars into the country by the end of 2028.
However, the instructions contain a one -time charge of around 6 cents per share in connection with the company’s license agreement at Hengrui Pharma, which it announced in March.
Merck confirmed his sales forecast of the year of $ 64.1 billion and $ 65.6 billion.
Also on Thursday, the drug maker reported income and profit in the first quarter, which exceeded expectations, as it stated that it experienced strength in his oncology portfolio and animal health products.
Merck also quoted “always meaningful” sales contributions from two recently launched medication. They are a vaccine that is protected against adults from a bacteria known as pneumococci and can cause serious diseases and lung infections to treat a rare, fatal lung disease and capvaxive.
The turnover of these drugs will probably be of crucial importance for the efforts of Merck to compensate for losses from the best -selling cancer therapy Keytruda, which will lose out in 2028.
Merck reported in the first quarter compared to the expectations of Wall Street, based on a survey of LSEG analysts:
- Win each share: $ 2.22 adapted compared to USD 2.14
- Revenue: 15.53 billion US dollars expected compared to $ 15.31 billion
The company achieved a net profit of 5.08 billion US dollars or $ 2.01 per share for the quarter. This is compared to a net result of $ 4.76 billion or $ 1.87 per share during the same period last year.
Without acquisition and restructuring costs, Merck earned $ 2.22 per share for the first quarter.
Merck achieved sales of 15.53 billion US dollars for the quarter, which was 2% compared to the same period last year.
Pharmaceutical, animal health sales
The pharmaceutical unit of Merck, which develops a wide range of medication, booked sales of $ 13.64 billion in the first quarter. That declined by 3% compared to the same period in the previous year.
Keytruda achieved sales of $ 7.21 billion in the quarter to increase only 4% compared to the same period in the previous year.
This increase was driven by a higher absorption of Keytruda for previous cancer and the strong demand for the medicine in metastatic cancer species that spread to other parts of the body. Nevertheless, sales under the estimates of StreetCcount came under the analysts expected by the analysts of $ 7.43 billion.
Remarkably, Merck continued to see
In February, Merck announced a decision to stop Gardasil’s deliveries in China from this month and to go through at least mid -2025. Investors will probably search for updates to these efforts during the profit on Thursday.
The Chinese market makes most of the international income of the blockbuster shot. Merck hopes that the extended approval of Gardasil for men between the ages of 9 and 26 in China will contribute to increasing the shot.
Gardasil generated sales of 1.33 billion US dollars, which declined by 41% of the first quarter of 2024, especially due to lower demand in China. This is among the estimated analysts of 1.45 billion US dollars by the analysts.
China has returned with tariffs of 125% for goods from the USA. Some experts said China’s tariffs for US products could lead to increased prices or a limited supply of some popular western medication for Chinese patients, Reuters reported.
The Animal Health Division of Merck, which develops vaccines and medication for dogs, cats and cattle, achieved sales of almost 1.59 billion US dollars, which increased an increase of 5% compared to the same period in the previous year. The company said that a higher demand for animal products and sales from Elanco’s Aqua business, which was acquired last year, led this growth.