Merck has published the first Molnupiravir sales results

Merck (MRK) reported better than investors’ expectations for the fourth quarter of 2021. Revenue and adjusted EPS reached $13.5 billion and $1.8 billion, exceeding analysts’ consensus by 2.8% and 17.6%, respectively. In addition, sales growth amounted to 2.8% and 23.5% quarterly and annual. 

The pharmaceutical segment showed the best dynamics. The oncological blockbuster Keytruda had the most significant impact on the dynamics of Merck’s revenue: revenues from this direction increased by 14.6%. In addition, shortly, the Company plans to expand the supply of the oral drug for the treatment of COVID-19 Molnupiravir, which has already received some approvals, including an emergency use permit (EUA) from the US regulator FDA. 

Three million courses in the US and 1 million approaches to other countries, including Japan and the UK, Molnupiravir’s quarterly sales revenue was $952 million. In addition, Merck continues to work to strengthen the oncological pipeline. By 2028, the Company plans to expand the clinical coverage of its oncology portfolio by 90 new prescriptions, including Keytruda, Lynparza, Lenvima, etc. 

Expanding the pipeline segment of vaccines The growth rate of SG&A expenses was 8%. The volume of R&D costs (excluding $2.7 billion of VelosBio takeover costs in the fourth quarter of 2020) has not changed. As a result, profitability has recovered to historical levels. One of the drivers of this indicator is the sales of Molnupiravir.

A confident annual forecast accompanies strong financial results. Management guidance for 2022 assumes sales growth to $56.1-57.6 billion (+15%-18.3%), of which $5-6 billion may be revenue from the sale of Molnupiravir. Non-GAAP EPS is expected in the range $7,12–$7,27 (+18,3–20,8%).