Here's Why Merck (MRK) Stock Has Outperformed Industry YTD

Core Insights - Merck has over six blockbuster drugs, with Keytruda being a major contributor, accounting for more than 45% of pharmaceutical sales and driving steady revenue growth [1] - The company reported better-than-expected first-quarter results, with Keytruda sales rising 24% and Gardasil sales increasing by 17% [1][2] - Merck raised its 2024 earnings per share guidance to between $8.53 and $8.65 and increased its revenue guidance range to $63.1 to $64.3 billion [2] Financial Performance - Merck's stock has increased by 20.3% this year, outperforming the industry average increase of 15.3% [2] - The strong first-quarter performance and guidance increase have contributed to the stock's rise [2] Product Pipeline and Acquisitions - Merck made significant regulatory and clinical progress in oncology, vaccines, and infectious diseases, including the acquisition of Harpoon Therapeutics, which added HPN328 to its pipeline [4] - Keytruda continues to expand into new indications and markets, with ongoing growth expected [4] - Merck is developing innovative immuno-oncology combinations and personalized mRNA therapeutic cancer vaccines in collaboration with Moderna [5] Future Prospects - Merck anticipates eight potential new product approvals between 2025 and 2030, with V116 and Winrevair expected to generate significant long-term revenues [7] - Winrevair was approved for pulmonary arterial hypertension in March 2024, and V116 is under priority review with an FDA decision expected on June 17, 2024 [7] Challenges - Merck faces challenges such as generic competition and rising pressure in its diabetes franchise, raising concerns about growth in its non-oncology business ahead of Keytruda's loss of exclusivity [6]