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Dec 31, 2022
Merck Q4 2022 Earnings Report
Merck's Q4 2022 financial results were announced, showcasing growth in pharmaceutical sales driven by oncology and hospital acute care, alongside a decline in animal health sales.
Key Takeaways
Merck reported a 1% increase in fourth-quarter pharmaceutical sales, reaching $12.2 billion, driven by oncology and hospital acute care, while animal health sales saw a 2% decline. GAAP EPS was $1.18, and non-GAAP EPS was $1.62. The company anticipates full-year 2023 revenue between $57.2 billion and $58.7 billion.
Pharmaceutical sales grew 1% to $12.2 billion, driven by oncology and hospital acute care.
KEYTRUDA sales increased 19% to $5.5 billion, reflecting strong momentum from metastatic indications and increased uptake across recent earlier-stage launches.
Vaccines sales decreased 4% to $1.5 billion, with GARDASIL/GARDASIL 9 sales declining due to lower U.S. demand.
Animal Health sales declined 2% to $1.2 billion, impacted by a reduction in veterinary visits and supply constraints for certain vaccines.
Merck
Merck
Merck Revenue by Segment
Revenue by Segment
Pharmaceutical Revenue
CapyFin.comAnimal Health Revenue
CapyFin.com Forward Guidance
Merck anticipates full-year 2023 revenue to be between $57.2 billion and $58.7 billion, including a negative impact of foreign exchange of approximately 2%. The company expects a significant decline in sales of LAGEVRIO, which are expected to be approximately $1.0 billion. Merck expects full-year 2023 GAAP EPS to be between $5.86 and $6.01 and non-GAAP EPS to be between $6.80 and $6.95, including a negative impact of foreign exchange of approximately 4%.
Positive Outlook
- Full-year 2023 revenue is expected to be between $57.2 billion and $58.7 billion.
- Full-year 2023 GAAP EPS is projected to be between $5.86 and $6.01.
- Full-year 2023 non-GAAP EPS is anticipated to be between $6.80 and $6.95.
- The financial outlook considers the acquisition of Imago and a collaboration with Kelun-Biotech.
- Operating expenses include incremental R&D spending to advance the development of new programs.
Challenges Ahead
- A negative impact of foreign exchange of approximately 2% is expected on revenue.
- A significant decline in sales of LAGEVRIO is anticipated, with expected sales of approximately $1.0 billion.
- A negative impact of foreign exchange of approximately 4% is expected on non-GAAP EPS.
- The Imago acquisition is anticipated to result in an approximate 1 percentage point unfavorable impact to Merck’s expected full-year 2023 GAAP and non-GAAP tax rates.
- GAAP and non-GAAP EPS in 2022 were negatively impacted by $0.22 of charges related to collaboration and licensing agreements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income