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Dec 31, 2023
Merck Q4 2023 Earnings Report
Merck reported mixed results due to a charge related to the collaboration with Daiichi Sankyo, while sales were driven by oncology, vaccines, and hospital acute care products.
Key Takeaways
Merck's fourth-quarter earnings were impacted by a $5.5 billion charge related to a collaboration with Daiichi Sankyo, leading to a GAAP loss per share of $0.48 and non-GAAP EPS of $0.03. Full-year pharmaceutical sales grew, driven by oncology, vaccines and hospital acute care products, offset by lower sales of LAGEVRIO and JANUVIA/JANUMET.
GAAP loss per share was $0.48, while non-GAAP EPS was $0.03, impacted by a charge related to the Daiichi Sankyo collaboration.
Full-year pharmaceutical sales grew 3% to $53.6 billion, driven by oncology, vaccines, and hospital acute care products.
R&D expenses increased significantly due to the Daiichi Sankyo collaboration and acquisitions of Prometheus and Imago.
Merck anticipates full-year 2024 sales to be between $62.7 billion and $64.2 billion.
Merck
Merck
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Pharmaceutical Revenue
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CapyFin.com Forward Guidance
Merck anticipates full-year 2024 sales to be between $62.7 billion and $64.2 billion, with non-GAAP EPS expected to be between $8.44 and $8.59.
Positive Outlook
- Full-year 2024 sales are expected to be between $62.7 billion and $64.2 billion.
- Non-GAAP EPS is expected to be between $8.44 and $8.59.
- Merck's full-year non-GAAP effective income tax rate is expected to be between 14.5% and 15.5%.
- The outlook for operating expenses reflects incremental R&D spending to advance the development of promising programs.
- The company expects inflation-related price increases to offset the negative impact of the devaluation of the Argentine peso.
Challenges Ahead
- Sales include a negative impact of foreign exchange of approximately 2%.
- Non-GAAP EPS includes a negative impact of foreign exchange of approximately $0.25 per share.
- Non-GAAP EPS includes a one-time charge of approximately $0.26 per share related to the Harpoon acquisition.
- Outlook does not assume any additional significant potential business development transactions.
- The devaluation of the Argentine peso is expected to negatively impact sales, although this is expected to be offset by inflation-related price increases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income