Merck Posts Very Strong Q1 2024 Results -- And Expects Even Better -- In The Back Half Of 2024...

The pembrolizumab franchise is clocking ever-increasing sales. . . and is as we've said, now the world's highest selling single therapeutic agent. That will continue past 2030 -- as I've long explained, despite less rosy guesses from Wall Street, about earlier patent expiries. It is always possible that a better agent for oncology comes along. . . but other than that (which no one might foresee at this point), the runway is clear.

So Merck is back over $130 a share -- and probably is looking at a 12 month fair value closer to $140, once Winrevair sales really start accelerating. Here's the Reuters analysis:

. . .[T]he company is making good progress on improving access to Winrevair, with several insurers and other payers already establishing coverage for it.

"Overall, we see today's results as consistent with the recent solid trends seen from Merck's business," J.P.Morgan analyst Chris Schott said.

The primary focus for Merck is Winrevair, Schott said, adding that he expects rapid uptake of the novel PAH drug, from the second half of the year. . . .

New Jersey-based Merck said it expected annual earnings between $8.53 and $8.65 per share, up from its previous forecast of $8.44 to $8.59. Analysts had expected earnings of $8.56 per share. The company's new forecast includes a $0.26 per share charge for its $680-million acquisition of cancer drug developer Harpoon Therapeutics, which closed in the first quarter of 2024, Merck said. The drugmaker forecast 2024 sales between $63.1 billion and $64.3 billion, up from its previous forecast of $62.7 billion to $64.2 billion. Analysts had expected sales of $63.83 billion. . . .

Now you know -- onward, grinning into the sunshine, here.

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