Merck beats earnings expectations, raises outlook on strong Keytruda and vaccine sales

Core Insights - Merck reported strong first-quarter results, exceeding expectations in both revenue and adjusted earnings, driven by sales of Keytruda and vaccine products [1][2] - The company raised its full-year revenue forecast to between $63.1 billion and $64.3 billion, and adjusted earnings per share to $8.53 to $8.65, reflecting positive growth outlook [1][2] Financial Performance - First-quarter adjusted earnings per share were $2.07, surpassing the expected $1.88, while revenue reached $15.78 billion, exceeding the forecast of $15.20 billion [2] - Net income for the quarter was $4.76 billion, or $1.87 per share, compared to $2.82 billion, or $1.11 per share, in the same period last year [2] - Revenue increased by 9% year-over-year, indicating strong performance despite upcoming patent expirations for Keytruda [2] Strategic Initiatives - Merck is preparing for the patent expiration of Keytruda in 2028, which is expected to impact sales, but has new drug launches and deals to mitigate losses [2][3] - The recent approval of Winrevair, a treatment for a severe lung condition, is projected to generate worldwide sales of up to $5 billion by 2030 [3] - The company is implementing a restructuring program aimed at improving its manufacturing network, with $246 million in charges recorded in the first quarter [3]