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Jun 30, 2022
Merck Q2 2022 Earnings Report
Merck's financial performance increased in the second quarter of 2022, driven by oncology, vaccines, and hospital acute care products.
Key Takeaways
Merck announced strong second-quarter 2022 financial results, with pharmaceutical sales increasing by 28% to $12.8 billion. Key drivers included oncology (particularly KEYTRUDA), vaccines (GARDASIL/GARDASIL 9), and hospital acute care products. The company is raising and narrowing its full-year guidance for sales.
Second-quarter pharmaceutical sales increased 28% to $12.8 billion.
KEYTRUDA sales rose 26% to $5.3 billion, driven by strong momentum from metastatic indications.
GARDASIL/GARDASIL 9 sales grew 36% to $1.7 billion, primarily driven by strong demand outside of the U.S., particularly in China.
Non-GAAP EPS was $1.87 for the second quarter of 2022 compared to $0.61 for the second quarter of 2021.
Merck
Merck
Merck Revenue by Segment
Revenue by Segment
Pharmaceutical Revenue
CapyFin.comAnimal Health Revenue
CapyFin.com Forward Guidance
Merck is raising and narrowing its full-year guidance for sales. At mid-July 2022 exchange rates, Merck expects sales growth of 18% to 20% in 2022, with full-year sales estimated to be between $57.5 billion and $58.5 billion, including a negative impact from foreign exchange of approximately 3%, a greater than 1% incremental negative impact from prior sales guidance.
Positive Outlook
- Sales growth of 18% to 20% in 2022
- Full-year sales estimated to be between $57.5 billion and $58.5 billion
- Non-GAAP effective income tax rate is expected to be between 13.5% and 14.5%
- Full-year 2022 GAAP EPS to be between $5.89 and $5.99.
- Full-year 2022 non-GAAP EPS range to be between $7.25 and $7.35
Challenges Ahead
- Negative impact from foreign exchange of approximately 3%
- Operational strength of approximately $0.25 that would have resulted in an increase from the previous guidance range is being offset by negative impacts
- Sales of $5.0 billion to $5.5 billion from LAGEVRIO for full-year 2022
- The GAAP and non-GAAP financial outlooks include the upfront payment of $290 million, which will have an estimated $0.09 negative impact on full-year EPS.
- The company does not have any non-GAAP adjustments to sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income