Merck forecasts 2026 sales below estimates on patent losses

By Michael Erman

Feb 3 (Reuters) - Merck & Co connected Tuesday forecast 2026 income and profits beneath Wall Street estimates arsenic the nonaccomplishment of patent exclusivity connected diabetes cause Januvia and different medicines volition ​hit harder than analysts are projecting.

The weaker-than-anticipated outlook overshadowed a fourth-quarter study successful which the U.S. ‌drugmaker bushed expectations, driven by beardown request for its blockbuster crab immunotherapy Keytruda.

Shares of the drugmaker fell 1.2% successful premarket trading.

The institution expects ‌2026 gross of $65.5 cardinal to $67.0 billion, with the precocious extremity of the scope falling abbreviated of the mean expert estimation of $67.6 billion, according to LSEG data.

"Where the disconnect is coming with the Street, frankly, is successful a batch of our bequest products, and these are products that are each mostly going disconnected patent," CEO Rob Davis said successful an ⁠interview. "As I look astatine the strategical ‌drivers of this company, I'm really precise confident."

He said the drugs that would beryllium weaker than analysts are expecting see Januvia and related medicines Janumet and Janumet XR, arsenic ‍well arsenic Bridion, an injection that reverses the effect of muscle-blocking drugs astatine the extremity of surgery. Analysts were already expecting important income drop-offs from both.

The caller Medicare terms for Januvia - negotiated nether erstwhile President Joe Biden's Inflation Reduction Act - could besides ​hurt its income much than analysts were estimating.

Sales of Merck's COVID-19 attraction Lagevrio would besides apt travel successful ‌below expert expectations, Davis said.

"With COVID fading... we've seen that dilatory rather a bit," helium said.

SOLID 2025 FOURTH QUARTER

Merck reported an adjusted nett of $2.04 per stock for the quarter, up of analysts' estimation of $2.01.

It posted fourth-quarter income of $16.4 billion, topping Wall Street estimates of $16.2 billion, marking a 5% summation from the aforesaid play a twelvemonth earlier.

The income maturation was chiefly fueled by Keytruda, with income up 7% to $8.37 billion, surpassing analysts' expectations of $8.23 billion. For the ⁠year, Keytruda income were $31.7 billion.

That show helped offset a steep 34% ​year-over-year plunge successful income for its quality papillomavirus vaccine Gardasil, which ​came successful astatine $1.03 cardinal for the quarter. The institution has been dealing with anemic request for that vaccine successful China that led it to halt shipments of the changeable there.

Merck ‍struck 2 deals successful the $10 ⁠billion scope successful 2025, buying Cidara Therapeutics and Verona Pharma successful bid to prime up caller drugs earlier Keytruda, the world's top-selling medicine medicine, loses patent extortion aboriginal this decade.