Continued Ramp Up In Keytruda And Zepatier Sales Will Likely Drive Merck’s Q4

-7.03%
Downside
132
Market
122
Trefis
MRK: Merck logo
MRK
Merck

Merck (NYSE:MRK) will report its Q4 2017 earnings on February 2. We expect to see continued growth in its cancer drug, Keytruda, along with Hepatitis C drug Zepatier. The combined sales of these drugs grew 3x year-on-year to $3.9 billion in the nine-month period ending Sep 2017. For the full year, we expect around 2.5x growth in Keytruda revenues and around 3.5x growth in Zepatier revenue, and believe that the coming quarters are likely to reflect this continued ramp up of sales. On the flip side, we expect continued pressure due to generic and branded competition for Merck’s diabetes drug, Januvia, anti-infective drug, Isentress, and immunology drug, Remicade, which may see a low-single-digits decline in sales.

Overall, we expect Keytruda and Zepatier to be the growth drivers for Merck in the fourth quarter, while other drugs that face pricing pressure amid strong competition may keep the overall growth in check. We have created an interactive dashboard that details the company’s expected Q4 2017 performance. You can modify segment revenues and net income margins to see how those changes impact the earnings.

Expect Q4 Revenue To Be ~ $10.6B

Relevant Articles
  1. At $100 Does Merck Stock Have Room For Growth?
  2. Should You Pick Merck Stock Over Coca-Cola?
  3. Should You Buy Merck Stock After An Upbeat Q2?
  4. How Has Merck Stock Performed During The 2022-23 Inflation Shock?
  5. Is Merck Stock A Better Pick Over ABBV?
  6. Should You Buy Merck Stock At $120?

Segment-Wise Performance

Non-GAAP Net Income And EPS

Our price estimate of $64 for Merck slightly above the current market price.

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology