Merck Q1 Sales Top Estimates with $525M Winrevair, EPS Guidance Raised
MRK•Merck posted first-quarter sales of $16.3 billion, topping consensus of $15.8 billion, driven by $525 million in Winrevair and $128 million in Keytruda Qlex. Adjusted loss was $1.28 after a $3.62 charge from Cidara acquisition, and annual revenue guidance rose to $65.8 billion with EPS outlook of $5.04–$5.16.
1. First-Quarter Sales and Earnings
Merck generated $16.3 billion in first-quarter revenue, above the $15.8 billion consensus, and reported an adjusted loss of $1.28 following a $3.62 per share charge tied to its $9.2 billion Cidara acquisition. The top-line beat reflects ongoing demand across key franchises despite integration costs.
2. Key Product Performance
Winrevair sales jumped 88% year-over-year to $525 million, fueled by expanded uptake in the U.S., Japan and Europe. Keytruda Qlex contributed $128 million as its faster, under-skin injection format gained traction, while Ohtuvayre and Capvaxive fell short of estimates with $131 million and $142 million in sales, respectively.
3. Full-Year Guidance Raised
Merck lifted its annual revenue outlook to a minimum of $65.8 billion and tightened its adjusted EPS projection to a $5.04–$5.16 range. The updated view excludes the pending $6.7 billion Terns Pharmaceuticals deal and reflects confidence in the firm’s growth-engine diversification.
4. Acquisition Impact on Strategy
The $3.62 per share hit from the Cidara Therapeutics deal underscores Merck’s commitment to bolstering its pipeline ahead of key patent expirations. The impending Terns acquisition is expected to incur an additional one-time charge of about $2.35 per share when completed.
