By Deena Beasley
April 30 (Reuters) – Merck & Co on Thursday reported a loss for the first quarter as an acquisition-related charge offset a 5% increase in product sales driven by cancer and respiratory drugs.
Shares rose nearly 5% in premarket trading after the loss came in narrower than analysts had forecast.
The U.S. drugmaker’s first-quarter revenue rose to $16.3 billion from $15.5 billion a year earlier and was ahead of the average Wall Street estimate of $15.8 billion, as compiled by LSEG.
Merck’s adjusted loss for the quarter, including a $3.62 per share charge for the acquisition of antiviral drug maker Cidara Therapeutics, was $1.28 a share, while analysts expected a loss of $1.51 a share.
For the full year, Merck narrowed its previous forecast range, pushing up the midpoint. The company said it now expects a 2026 profit of $5.04 to $5.16 per share on sales of $65.8 billion to $67 billion, compared with a previous estimate of $5.00 to $5.15 per share on sales of $65.5 billion to $67 billion.
Merck said the outlook does not reflect any impact from its planned acquisition of biotech Terns Pharmaceuticals, which will result in a one-time charge of $2.35 per share.
Analysts have forecast Merck’s 2026 profit at $5.12 per share on revenue of $66.6 billion.
Sales of blockbuster cancer immunotherapy Keytruda, the world’s biggest-selling prescription medicine, rose 12% to $8 billion, beating analyst estimates of $7.6 billion. The total includes $128 million for a newer injected version of the drug, which had been available only as an infusion.
Sales of lung disease drug Winrevair rose 88% to $525 million, exceeding the $479 million expected by analysts.
Merck said sales of diabetes drug Januvia fell 28% to $574 million due to lower U.S. demand and pricing as well as generic competition in some international markets. Sales of human papillomavirus vaccine Gardasil fell 19% to $1.07 billion.
Animal health provided another bright spot for the company with sales in the quarter jumping 13% to $1.8 billion.
(Reporting By Deena BeasleyEditing by Bill Berkrot)
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