Merck swings to a profit as Keytruda revenues soar

Not only did Merck, which is responsible for the blockbuster cancer drug Keytruda and Januvia diabetes pills, beat Wall Street profit expectations, the New Jersey-based outfit also raised its full-year profit forecast for 2018.

Merck turned in a net income of $1.95bn, or $0.73 per share, while revenues came in at $10.79bn, a 5% year-on-year improvement.

Adjusted for one-time costs related to mergers and acquisitions, Merck's quarterly income came to $1.19 per share, $0.03 better analysts' expectations.

Merck's solid performance was a result of an impressive 80% jump in revenues of Keytruda to $1.9bn. The industry giant told investors that Keytruda sales looked set to continue on their ascent moving forward as the immuno-oncology drug has secured approval after approval for the treatment of additional cancer types.

Gardasil 9, Merck's vaccine aimed at preventing sexually transmitted cancers, which also recently won regulatory approval in the US, posted a 55% jump in sales.

Veterinary medicines carved out a 2% increase to $1.02bn.

US sales shot up 9% to $5.03bn, while overseas sales ticked up 1% to $5.76bn.

Looking forward, Merck told investors that it now expects full-year earnings of $4.30 to $4.36 per share, adjusted for one-time items - up from its August forecast of $4.22 to $4.30 per share. Merck also narrowed its 2018 revenue forecast to a range of $42.1bn to $42.7bn.

As of 1450 BST, Merck shares had slipped 4.17% to $67.60 each.